Pacific Sunwear of California, Inc. updated earnings expectations for the second quarter of fiscal 2009, announcing same-store sales for the second quarter are projected to decrease by approximately 24% versus original expectations of negative 17% to 20%. Additionally, the company expects a lower effective income tax rate and higher store asset impairment charges for the quarter. As a result, 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, 2009.
The company estimates its fiscal 2009 effective income tax rate will be approximately 38%, which will result in an income tax rate for the second quarter of approximately 35% versus previous guidance of 43%. The decrease in the tax rate will negatively impact second quarter earnings results by approximately 3 cents per share.
The company 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.
The company will report its fiscal 2009 second quarter earnings results on August 20, 2009 after the market close. Management will host a conference call on August 20, 2009 at 4:30 p.m. EDT / 1:30 p.m. PDT.
