PacSun Q3 loss widens, beats Street

Anaheim, Calif. Pacific Sunwear of California said Tuesday that it lost $10.9 million in the third quarter ended Oct. 31, compared with a loss of $3.5 million in the year-ago quarter.

Net sales for the third quarter dropped 17% to $268 million, from $324 million in the year-ago period. Analysts expected sales of $260 million.

Same-store sales dropped 18% in the quarter.

"Through the first 11 weeks of the third quarter, our business performed at the higher end of our internal expectations led by some improving trends in our Young Mens business," stated Gary Schoenfeld, president and CEO. "We've since seen a precipitous decline across both genders during the last two weeks of the third quarter and into the first two weeks of the fourth quarter.”

PacSun said it expects comps to drop by at least 20% in the fourth quarter.

As of Oct. 31, the teen retailer operated 904 stores in 50 states and Puerto Rico.