Pacific Sunwear reported that revenue fell by ten percent in the second quarter – a loss that was narrower than market estimates, according to a Reuters article posted today. The retailer also saw a ten percent decrease in comparable store sales, and shares fell 6 percent. The company forecasts comparable sales will be down 4-9 percent for Q3.
Aug 24 (Reuters) – Teen apparel retailer Pacific Sunwear of California Inc (PSUN.O) posted a quarterly loss that was narrower than market estimates, but forecast a weak third quarter amid falling sales, sending its shares down 6 percent after market.
For the third quarter, PacSun expects comparable sales to be down 4-9 percent. [ID:nWNAB0502]
The company, which has been trying to revamp itself over about a year, has been losing out to peers as it failed to cash-in on key fashion trends. Moreover, the revamp has been taking longer than expected to show results.
The company, which like rival Zumiez Inc (ZUMZ.O) sells surf and skateboard-inspired clothes and merchandise, is also having it hard as price-sensitive teens cut back on purchases and favor lower-priced retailers like Aeropostale Inc (ARO.N), H&M (HMb.ST) and Forever 21.
Shares of Anaheim, California-based PacSun have lost about 7 percent of their value since they posted first-quarter results in May, while the larger Nasdaq Composite Index .IXIC has lost around 2 percent.
PacSun shares were trading at $3.80 Tuesday in extended trade, after closing at $4.05 on Nasdaq.