Pacific Sunwear Loss Widens, Yet Tops Street; Stock Up - Update

(RTTNews) - Specialty retailer Pacific Sunwear of California Inc. (PSUN) Tuesday reported a fourth-quarter loss that widened from a year ago, hurt by lower sales and negative operating margins. However, results for the quarter came in above Wall Street estimates.

Moving forward, the company expects to report a loss for the first quarter even as sales expectations appear buoyant. Shares of Pacific Sunwear climbed 10 percent in after-hours trade on the Nasdaq.

The results come amid tough retail environment, the company said. Pacific Sunwear sells branded and proprietary casual apparel, accessories, and footwear designed for teens and young adults.

The Anaheim, California-based retailer reported a fourth-quarter net loss of $22.5 million or $0.33 per share, compared with a loss of $20 million or $0.29 per share last year.

Results for the recent quarter included derivative liability of $3.6 million and deferred tax valuation allowance of $6.6 million.

Excluding items, adjusted loss from continuing operations for the quarter was $11.8 million or $0.17 per share. On average, 12 analysts polled by Thomson Reuters expected a loss of $0.19 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the fourth quarter dropped to $218.6 million from $222.8 million in the prior year. Analysts expected sales of $213.5 million for the quarter.

On a same store basis, sales for the quarter were up 2 percent.

The company said that an extra week in fiscal year 2012 hurt sales by about $9 million in the recent fourth quarter.

Pacific Sunwear ended the quarter with 618 stores versus 644 stores a year ago.

For the first quarter, the company expects adjusted loss of $0.17 to $0.12 per share and sales of $169 million to $174 million. Analysts currently expect a loss of $0.12 per share on sales of $168 million.

Pacific Sunwear expects first-quarter same store sales growth of 1 percent to 4 percent.

Pacific Sunwear stock closed Tuesday at $3.00, up $0.18 or 6.38%, on a volume of 732k shares. In the after hours, the stock gained $0.30 or 10% at $3.30%.