• Q4 loss widens to $36m
  • Sales down 17% to $293m
  • Sees positive same-store sales by Q4

Falling sales and a tax charge have combined to widen fourth quarter losses at Pacific Sunwear of California Inc, but the teen clothing retailer expects to be back to positive same-store sales by the end of the current year.

For the three months to 30 January, net loss was $36m or $0.56 per share, compared with a loss of $27m or $0.42 per share, the year before.

Excluding a tax charge of $19m, loss for the quarter were $17m or $0.26 per share, the company said.

Sales tumbled 17% to $293m, down from $352m last time, while same-store sales fell 19%.

Losses for fiscal 2009 were $70m or $1.07 per share, compared to a loss of $39m or $0.59 per share, the year before.

Total sales dropped 18%  from $1.25bn to $1.03bn, and same-store sales fell 20%.

“When I joined PacSun, given all that we needed to do I knew it would take time to turn things around,” said president and CEO Gary H Schoenfeld. 

“Eight months into the job, I'm encouraged by the changes we're making and the prospects for PacSun to once again become a leader for teens in the mall.”

He added: “We've still got a tough period ahead of us in our juniors' business, yet I believe our young men's categories can begin to lead the turnaround of our business as we look further ahead to back to school and holiday.”

Looking ahead, the company expects to post a net loss of $0.50 to $0.60 per share, with same-store sales down 13% to 18%.

And it has set the goal of getting back to positive same-store sales results by the fourth quarter.