Anaheim, Calif.-based retailer Pacific Sunwear of California Inc. said in a regulatory filing today with the Securities and Exchange Commission that it received warning from the Nasdaq Global Select Stock Market about a potential delisting.
The company said it was informed late last month that it had fallen short of the exchange’s $15 million minimum market value in the last 30 days. It has until April 26 to meet the minimum market capitalization for a period of at least 10 straight days. The company could transfer its stock to the Nasdaq Capital Market if it is unable to fall back into compliance.
Pacific Sunwear said in its filing it “has not yet determined what other actions it may pursue to regain compliance” with the exchange’s rule and that “there can be no assurance that the company will be able to regain compliance with such requirement.”
Pacific Sunwear shares continue to trade on the exchange. The stock has slumped since the start of this year, off about 85 percent with a market value of about $22 million.
The company reported net sales down 7.6 percent from the year-ago period to $195.62 million in the August quarter. Poor sales of shorts, swim and sandals were blamed for the company’s performance. Same-store sales were down 6 percent in the quarter. It closed the period with 608 doors. Meantime, net income rose to $8.34 million during the quarter, compared to $7.5 million in the year-ago period.
The August quarterly results also came with news that the company was looking to trim about $15 million in operating expenses for its fiscal 2016 year, which will come through a combination of initiatives at both the store level as well as a restructure of operations at headquarters.