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Pacific Sunwear Says Weak Sales Will Keep Quarterly Profits Low

July 12, 2001|From Bloomberg News

Pacific Sunwear of California Inc. said Wednesday that its second-quarter profit will be at the low end of the teen-clothing retailer's previous estimates because of weak sales of summer clothing.

The Anaheim company said last month that it expected to post profits in the range of 13 to 17 cents a share for the three months ending July 28, down from 23 cents a share a year earlier. At the time, Pacific Sunwear said sales of shorts and pants were lower.

Analysts expect the company to earn 14 cents a share for the quarter, according to a survey by First Call/Thomson Financial.

Sales at company-owned stores open at least a year fell 7.4% for the five-week period ended July 8. The so-called same-store sales are a key measure of a retailer's performance because they exclude closed and new stores. The company said it will continue to aggressively sell its summer apparel this month.

Despite the news, the company's stock rose $2.26 a share, or 12%, to $21.67 in Nasdaq trading. Wells Fargo Van Kaspar reiterated its strong buy rating on the stock following Pacific Sunwear's announcement.

The company expects to report results Aug. 7.

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