Teenage casual apparel retailer Pacific Sunwear of California has announced a Q3 GAAP net loss of US$20.0m, compared to income of $9.0m in the prior year period.

The company said that store asset impairments and inventory reserves associated with the company's demo stores accounted for approximately $31m in after-tax charges.

Total sales for the third quarter were $373.1m, a decrease of 0.6% from total sales of $375.4m in Q3 last year, while the company's same-store sales increased 5.0%.

"I am very pleased by the progress shown by our core PacSun business during the third quarter," commented Sally Frame Kasaks, chief executive officer. "We completed a strong back-to-school season, driven by continued progress in improving our juniors' business and steady performance from our guys' business."

Total sales for the first three quarters were $1.4bn, an increase of 4.9% over total sales of $989.0m, bur PacSun has recorded a GAAP net loss of $35.6m for the year so far.

Assuming a flat to low-single digit increase in same-store sales for the fourth quarter, the company expects fourth quarter earnings in the range of $0.26 to $0.29 per diluted share.