Pacific Sunwear of California Inc. hasn’t quite turned the corner, but the Anaheim, Calif.-based action sports retailer’s first-quarter performance shows it might be on the right track.
In the three months ended April 28, PacSun’s net loss shrank to $15.6 million, or 23 cents a diluted share, from $28.7 million, or 43 cents a diluted share, a year ago. The adjusted loss was 20 cents a diluted share, 9 cents better than the 29-cent loss expected, on average, by analysts.
PacSun’s net sales from continuing operations rose 1 percent to $173.8 million from $171.9 million in the first quarter of last year, and comparable-store sales increased 1 percent. Gross margin picked up 430 basis points to 23.6 percent of sales versus 19.3 percent a year ago.
The results might harbinger a reversal of fortune for the long-suffering retailer, which registered comp declines of 1 percent, 8 percent and 20 percent in fiscal years 2011, 2010 and 2009, respectively. They come as PacSun has been jettisoning underperforming stores at tertiary malls. The company had 729 stores at the end of the first quarter and anticipates culling its store count to around 630 by yearend.
“We saw strong improvement in the second half of the quarter, and we really executed on every dimension financially that you would want to achieve,” PacSun chief executive officer and president Gary Schoenfeld told WWD. When asked about PacSun possibly turning the corner, he added, “I’m not prepared to put that stake in the ground based on one quarter, but there is a growing sense of optimism, and we will see how the balance of the year plays out. But I am encouraged by what I have seen.”
During an afternoon conference call, Schoenfeld suggested that PacSun’s momentum from the first quarter hasn’t ebbed in the second. “We are early in the quarter, but we are seeing positive comps continue so far in this quarter,” he said. PacSun has forecast same-store sales in the second quarter in the range of down 1 percent to up 4 percent.
Schoenfeld noted that women’s and men’s both comped up 1 percent, the first time both had increased since 2005. PacSun’s female customer “parallels our guy customer and the sweet spot continues to be in that late teens, early 20s” group, he said. “We all know that if you are successful in that age group, you will have the younger customers aspiring to be part of that.”
Efforts to reconnect with customers are getting a boost from a campaign dubbed Golden State of Mind that will cross print and online advertising, in-store imagery and gsom.com, a content-driven Web site launching Sunday.
“We have confused the customer over the past four, five or six years in terms of what we really stood for. Throughout the company’s first 20, 25 years, it was very clear that PacSun was the retailer bringing this new lifestyle and a world of new brands to consumers around the country. I think we lost our way a bit, chased more of the vertical retailers,” said Schoenfeld. “Importantly, Golden State of Mind brings us back to the authentic heritage, which was why PacSun was successful for so many years.”
“What he has done at Vuitton is really exceptional,” said @gameofthrones’ actress Gwendoline Christie on @mrkimjones’ final show for @louisvuitton. “He has rebooted luxury in terms of making it commercial, viable and contemporary. And most importantly artistic. He has never compromised his artistic vision for the sake of commodity.” (📷: @zefashioninsider)
After seeing a demand for men’s wear from its customers, British contemporary women’s wear label @ariesarise has added a men’s wear component and will launch a unisex collection with @mrporterlive. The 20-piece collection includes jackets, denim, logo T-shirts and more with deconstructed ‘90s vibes. Set to launch on January 18, you can shop the pieces on Aries’ website and on mrporter.com. #wwdfashion
“And so spending so much time with a character who thinks like that, inevitability you try and analyze yourself and go back and think about your own demons and dark chapters that you had in your life,” says @thedanielbruhl of his role in TNT’s “The Alienist.” The show, set in the Gilded Age of New York, also stars Dakota Fanning and Luke Evans. Head to WWD.com to read about how 39-year-old Brühl prepared for the role and why he thinks the show is so relevant to today #wwdeye ( 📷: @Eriktanner)
Now that Celine Dion’s collection has topped $10 million in sales, the pop superstar, fashion icon and newly-minted industry player is eyeing growth in Asia. Read the full report by @tiffanyap, link in bio. #wwdnews #celinedion
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
Among the familiar faces at @off____white’s show was a surprise figure: Japanese artist @takashipom, pictured here on Wednesday morning. Other show-goers included @jerrylorenzo, who spoke about his upcoming project: a @nike collaboration for back to school, with designs inspired by his childhood on the West Coast. Sitting in the front row were Future, Don Crawley, @miguel and more. See the rest of the photos on WWD.com #wwdeye (📷: Stephane Feugere)
According to @laurentsai, former “Terrace House: Aloha State” cast member, she didn’t know she was auditioning for the Japanese version of “Real World.” “I was telling a couple of my friends and someone’s like, ‘That sounds a lot like Terrace House.’ I was like, ’No it can’t be.’” Turns out, it was. But Tsai isn’t just a reality star — she’s an illustrator who has worked with Starbucks Japan and most recently, she’s dipping her toes into the fashion world. Head to WWD.com to read about her time on the show, modeling and her art. #wwdeye (📷: @danieldorsa)
More changes are coming to New York Fashion Week: Beginning with the spring 2019 collection, @alexanderwangny will move his New York show to June from September, adopting a biannual schedule with collections shown in June and December. Additionally, the @cfda is planning for an official summer/winter fashion season taking place as soon as June and December 2018. Read more about the upcoming changes on WWD.com. #wwdnews #wwdfashion (📷: @slovekinpics)