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Pacific Sunwear Posts Wider

Anaheim, Calif. Pacific Sunwear of California Inc. on Thursday posted a wider quarterly net loss as same-store sales fell and it booked charges related to the closing of its Anaheim distribution center.

The chain had a fiscal first-quarter net loss of $37.1 million, compared with its year-earlier net loss of $5.1 million. Its loss from continuing operations for the quarter ended May 3 was $12 million compared to a net loss of $0.3 million for the same quarter last year.

Total sales from continuing operations were $266.9 million vs. total sales of $268.1 million last year. Same-store sales decreased 1% during the period.

Pacific Sunwear noted that its demo and One Thousand Steps divisions were designated as discontinued operations during the first quarter of fiscal 2008 and the fourth quarter of fiscal 2007, respectively.

First-quarter results for fiscal 2008 include an after-tax asset impairment charge of $4.9 million associated with the company’s materials handling equipment in its closed Anaheim distribution center. Assuming all contingencies to closing are satisfied, the company currently expects the previously announced sale of its Anaheim distribution center to be completed by the end of fiscal 2008.

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