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.
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
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In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye