Teen-clothing retailer Pacific Sunwear of California, Inc. (PSUN) Wednesday said it now expects wider loss than previously forecast, citing more lower same-store sales and higher asset impairment charges. Shares were down more than 13% in the after-market hours.
The Anaheim, California-based company said it now expects to report second-quarter loss per share of $0.22 - $0.24, compared with loss of $0.11 - $0.17 per share projected earlier. Nineteen analysts polled by Thomson Reuters currently expect the company to report a loss of $0.13 a share for the quarter. Analysts' estimates typically exclude special items.
In addition, Pacific Sunwear now expects same-store sales to drop about 24% for the quarter, compared with its earlier outlook for a decline of 17% - 20%.
The company said it would take non-cash, store asset impairment charges of about $5.5 million for the second quarter, which is about $2.7 million or $0.02 a share higher than the previous forecast.
Additionally, the company estimates lower effective income tax rate of about 35% for the second quarter and about 38% for the fiscal 2009. The decrease in the tax rate is expected to negatively impact the second-quarter earnings results by about $0.03 a share.
Among the competition, clothing and personal care products retailer American Eagle Outfitters (AEO) however backed its second-quarter earnings outlook, while Casual and active apparel retailer Aeropostale has raised its forecast.
American Eagle Outfitters reiterated its second-quarter earnings guidance of $0.12 - $0.15 per share, but excluding the possibility of additional impairments or losses related to investment securities.
Aeropostale lifted its second-quarter earnings per share forecast to $0.45 - $0.47 from prior range of $0.43 - $0.45 per share, after taking into consideration pre-tax charges of about $3.0 million related to the closing of the Jimmy'Z concept.
PSUN shares ended Wednesday's trading session at $3.40, up 1.49%. In the after hours, shares were down by over 13% and trading at $2.94.
For comments and feedback: editorial@rttnews.com