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.
Breaking News: @louisvuitton's men's artistic director @mrkimjones is leaving the French fashion house after nearly 7 years. Jones joined Louis Vuitton in 2011, following a three year tenure as creative director of British luxury goods brand Alfred Dunhill. Jones is to exit Louis Vuitton after showing his fall 2018 collection for the brand in Paris on Thursday. Read the full exclusive story on WWD.com. Link in bio. #wwdnews #wwdfashion
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Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews