Shares of Pacific Sunwear of California Inc. rose 1.3 percent in early after-market trading following the teen chain’s report of fourth-quarter results.
The shares on Monday initially closed up 6.4 percent to $3 in trading on the Nasdaq, before climbing again to $3.04. The company reported its fourth-quarter and full-year results after the markets closed and did better than Wall Street expected.
For the three months ended Feb. 1, the net loss was $22.5 million, or 33 cents a diluted share, compared with a net loss of $19.9 million, or 29 cents, a year ago. On an adjusted basis, stripping out a certain loss and a tax benefit, the loss for continuing operations was 17 cents a share for the quarter, better than Wall Street’s estimate of a loss of 19 cents. Net sales slipped 1.9 percent to $218.6 million from $222.8 million. Same-store sales in the quarter were up 2 percent.
For the year, the net loss narrowed to $48.7 million, or 71 cents a diluted share, from $52.1 million, or 77 cents, in 2012. Net sales rose 1.7 percent to $797.8 million from $784.7 million.
Gary H. Schoenfeld, president and chief executive officer, said, “We continue to be encouraged by our positive momentum within a challenging retail environment throughout the year, marked by eight straight quarters of positive comparable-store sales, sustained gross margins and reduced operating costs, all contributing to a significant improvement in our operating performance compared to fiscal 2012.”
The ceo added that key priorities in fiscal 2014 include “showcasing our premium brand portfolio through curated assortments, managing inventory with on-trend fashion and speed to market, and continuing to elevate both our in-store and digital experience.”
For the first quarter, the company is forecasting an adjusted loss of 12 cents to 17 cents a diluted share, compared with a loss of 14 cents a year ago. The chain also guided revenue to between $169 million and $174 million, and a same-store sales gain of between 1 percent and 4 percent.