Pacific Sunwear Reports Holiday Sales; Provides Update on Fourth Quarter Financial Outlook
January 09 2014 - 4:00PM
Pacific Sunwear of California, Inc. (Nasdaq:PSUN) (the "Company"),
announced today that its fourth fiscal quarter comparable store
sales through January 4, 2014 (the "Holiday Period") were flat on a
continuing operations basis, excluding online sales. The Company
stated that with the growing relevance of online sales in the
marketplace, it will hereafter include online sales in its
comparable store sales. Including online sales, comparable store
sales during the Holiday Period increased 1% compared to the same
period a year ago, on a continuing operations basis.
"After a strong start to the holiday season in November, the
first three weeks of December were significantly below our
expectations primarily due to a decrease in traffic and softness in
denim. Business picked up in the final few days prior to Christmas
and then finished the month strong as self-shoppers came back to
the mall. Overall, it has been a choppy holiday season and we now
expect fourth quarter comparable store sales to be flat to 1%,
compared to last year," said Gary H. Schoenfeld, President and
Chief Executive Officer.
Based on these recent trends, the Company now expects non-GAAP
loss per diluted share from continuing operations for the fourth
quarter of fiscal 2013 to be in the range of $(0.21) to $(0.18),
which after adjusting for the 53rd week retail calendar shift,
compares to $(0.20) last year.
The revised fourth quarter non-GAAP loss from continuing
operations per diluted share guidance range is based on the
following assumptions:
- Comparable store sales, including online sales, from flat to
1%;
- Revenue from $211 million to $214 million;
- Gross margin rate, including buying, distribution and
occupancy, of 19% to 20%;
- SG&A expenses in the range of $58 million to $59 million;
and
- Applicable non-GAAP adjustments are tax effected using a
normalized annual income tax rate of approximately 37%.
About Pacific Sunwear of California, Inc.
Pacific Sunwear of California, Inc. and its subsidiaries
(collectively, "PacSun" or the "Company") is a leading specialty
retailer rooted in the action sports, fashion and music influences
of the California lifestyle. The Company sells a combination of
branded and proprietary casual apparel, accessories and footwear
designed to appeal to teens and young adults. As of January 9,
2014, the Company operates 629 stores in all 50 states and Puerto
Rico. PacSun's website address is www.pacsun.com.
Pacific Sunwear Safe Harbor
This press release contains "forward-looking statements"
including, without limitation, the statements made in the second,
third and fourth paragraphs above. In each case, these statements
are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. The Company intends that
these forward-looking statements be subject to the safe harbors
created thereby. These statements are not historical facts and
involve estimates, assumptions and uncertainties that could cause
actual results to differ materially from those expressed in such
forward-looking statements. Uncertainties that could adversely
affect the Company's business and results include, among others,
the following factors: increased sourcing and product costs;
adverse changes in U.S. and world economic conditions generally;
adverse changes in consumer spending; changes in consumer demands
and preferences; adverse changes in same-store sales; higher than
anticipated markdowns and/or higher than estimated selling, general
and administrative costs; currency fluctuations; competition from
other retailers and uncertainties generally associated with apparel
retailing; merchandising/fashion risk; lower than expected sales
from private label merchandise; reliance on key personnel; economic
impact of natural disasters, terrorist attacks or war/threat of
war; shortages of supplies and/or contractors as a result of
natural disasters or terrorist acts, which could cause unexpected
delays in store relocations, renovations or expansions; reliance on
foreign sources of production; and other risks outlined in the
Company's filings with the Securities and Exchange Commission
("SEC"), including but not limited to the Company's Annual Report
on Form 10-K for the fiscal year ended February 2, 2013, and
subsequent periodic reports filed with the SEC. Historical results
achieved are not necessarily indicative of future prospects of the
Company. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof.
The Company assumes no obligation to update or revise any such
forward-looking statements to reflect events or circumstances that
occur after such statements are made. Nonetheless, the Company
reserves the right to make such updates from time to time by press
release, periodic report or other method of public disclosure
without the need for specific reference to this press release. No
such update shall be deemed to indicate that other statements not
addressed by such update remain correct or create an obligation to
provide any other updates.
CONTACT: Michael W. Kaplan
Chief Financial Officer
(714) 414-4003