Cost cutting, inventory management and improvements in e-commerce helped Pacific Sunwear of California Inc. reduce its third-quarter loss, but the teen-apparel retailer cut fourth-quarter guidance and now expects to lose money.
The Anaheim, Calif.–based specialty retailer said its net loss contracted to $2.5 million, or 4 cents a share, during the three months ended Nov. 1, versus a loss of $20 million, or 29 cents a share, for the same period last year. Excluding a 1 cent a share benefit from the discontinued D.e.m.o. and One Thousand Steps operations and a noncash goodwill impairment charge of 6 cents a share, the company had a profit on an earnings per share basis of 1 cent, matching the consensus estimate. Net sales slid 5.3 percent to $323.6 million from $341.9 million and were down 7 percent on a same-store basis.
“To strengthen our financial position in this economic downturn, we are focused on reducing our inventory, capital expenditures and other expenses,” chief executive officer Sally Frame Kasaks said.
PacSun said increased promotional activity and expectations of a “high-single-digit” decrease in comparable-store sales led it to anticipate a fourth-quarter loss of 3 to 8 cents a diluted share, including an estimated gain of 23 cents on the sale of its Anaheim distribution center. Including the Anaheim facility, the company had expected EPS of 11 to 16 cents a share.
For the nine months, PacSun posted a net loss of $36.8 million, or 55 cents, compared with a loss of $35.6 million, or 51 cents, for the same period in 2007. The company’s loss from continuing operations totaled $11.8 million, or 18 cents a share, versus income of $26.1 million, or 37 cents a share. This year’s results include an asset impairment charge of 7 cents a diluted share in the first quarter related to materials handling equipment in the Anaheim distribution center and a goodwill impairment charge of 6 cents a diluted share.
Net sales dipped 2 percent to $903.2 million from $921.8 million last year while same-store sales were down 3 percent.
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion
“I’m Russian and I love to use all these little tricks that I got from my grandma or my mom. We didn’t have a lot of money for creams or anything like that so we would use a garden as a beauty treatment regime. We’d put cucumber in the fridge and do a cucumber mask,” says model @irinashayk on one of her beauty hacks. WWD asked celebs what their go-to self-care rituals are. See what Naomie Harris, Freida Pinto and more said on WWD.com. #wwdeye #wwdbeauty (📷: @zefashioninsider)
Exclusive: @viktorandrolf are teaming up with @Zalando on a collection made from leftover clothing. The lineup, which lands at the retailer February 1, includes 17 pieces adorned with sliced up and repurposed overstock from the retailer’s private label collection. Pictured here is a look from the collection –– see more on WWD.com. #wwdfashion #wwdnews
@duewestnyc is the newest bar joining the collection of intimate neighborhood-focused spaces in the West Village. The cocktail menu, which includes bitters and syrups made in-house, offers a “Build Your Own Old-Fashioned” – like the one pictured here – where guests can choose from a list of spirits and unexpected sugars and bitters. #wwdeye
Spotted at last night’s National Board of Review gala in NYC: Angelina Jolie. Jolie – along with Meryl Streep, @lupitanyongo and more – continued the all-black dress code from Sunday’s Golden Globes. #wwdeye (📷: @lexieblacklock)