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PacSun profit plummets 80%

March 16, 2007|From Reuters

Teen retailer Pacific Sunwear of California Inc. on Thursday reported an 80% decline in quarterly profit that matched Wall Street estimates, hurt by store closure costs and higher markdowns during the quarter.

It shares dropped 1% in after-hours trading after the company gave an outlook for the first half of fiscal 2007 that was below analysts' average expectations.

The operator of the PacSun chain of surf-inspired clothing said net income for its fiscal fourth quarter ended Feb. 3 was $9.1 million, or 13 cents a share, compared with $47 million, or 63 cents, a year earlier.

Anaheim-based Pacific Sunwear -- which is searching for a chief executive -- said it incurred a charge of 24 cents a share related to the closure of 74 d.e.m.o. stores, its struggling chain that sells urban clothing styles. Excluding those charges, adjusted earnings were 37 cents a share.

Analysts on average had expected earnings of 13 cents a share on a net basis and 37 cents excluding items, according to Reuters Estimates.

Sales rose 8% in the quarter to $458.2 million, above a Wall Street consensus estimate of $441.2 million.

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