• Q2 earnings reach US$7.5m
  • Sales grow 0.8%
Pacific Sunwear said it believes its core strategies are attracting new customers

Pacific Sunwear said it believes its core strategies are attracting new customers

Action sports and lifestyle retailer Pacific Sunwear of California has moved to a profit in the second quarter thanks to growing sales and a gain on derivative liability.

Income from continuing operations in the quarter ended 2 August amounted to US$7.5m, compared to a loss of $18.6m in the prior year. Results included a non-cash gain of $10.4m.

Sales climbed 0.8% to $211.7m, while comparable store sales edged up 0.3%. The company ended the quarter with 618 stores versus 637 stores a year ago.

"As previously indicated, sales trends improved as the quarter progressed led by continued growth in our men's business," said CEO Gary Schoenfeld. "For Q3, even in the face of a down-trending denim cycle we are encouraged by the positive response to the balance of our initial fall assortments. We continue to believe that our core strategies are attracting new customers and differentiating PacSun in this very competitive market."

For the full year, the company is forecasting a non-GAAP loss per diluted share from continuing operations of between $(0.09) and $(0.04), compared to $(0.05) in the third quarter. Comparable store sales are expected to be flat to +3% and revenue from $203m to $208m.