Pacific Sunwear has updated its initial earnings expectations for the second quarter of fiscal 2009. A lower effective income tax rate, along with a higher store asset impairment charges for the quarter, have led to a lower estimated sales and a higher estimated loss for the period.
Same-stores sales, which PSUN originally forecast down 17% to 20%, are now estimated to be down 24% for the quarter. The company now expects to report a second quarter loss of 22 cents to 24 cents per share versus initial guidance for the quarter of a loss of 11 cents to 17 cents per share issued on May 21.
A change in the tax rate will negatively impact second quarter earnings results by approximately 3 cents per share. PSUN also expects to incur approximately $5.5 million in non-cash, store asset impairment charges during the second quarter. These impairment charges are approximately $2.7 million, or 2 cents per share- higher than previously anticipated.
The company also reported that it has had no direct borrowings outstanding under its credit facility at any time during the second quarter.
