Pacific Sunwear of California, Inc. said that due to weak December sales, it expects to show a loss of 21 to 18 cents a share in its fourth quarter. After adjusting for the 53rd week retail calendar shift, that compares to a loss of 20 cents a share in the year-ago quarter.
Same-store sales were flat for the quarter through Jan. 4 (the “Holiday Period”), excluding online sales. Including online sales, comps inched ahead 1 percent.
“After a strong start to the holiday season in November, the first three weeks of December were significantly below our expectations primarily due to a decrease in traffic and softness in denim,” said Gary Schoenfeld, president and CEO. “Business picked up in the final few days prior to Christmas and then finished the month strong as self-shoppers came back to the mall. Overall, it has been a choppy holiday season and we now expect fourth quarter comparable store sales to be flat to 1 percent, compared to last year.”
The new guidance assumes revenues ranging from $211 million to $214 million, a gross margin rate, including buying, distribution and occupancy, of 19 percent to 20 percent; and SG&A expenses in the range of $58 million to $59 million.