PacSun comparable store sales up but loss widens

Pacific Sunwear of California announced that net sales for the fourth quarter of fiscal 2014 ended January 31, 2015, were 231.6 million dollars versus net sales of 218.6 million dollars for the fourth quarter of fiscal 2013 ended February 1, 2014. Comparable store sales for the fourth quarter of fiscal 2014 increased 6 percent. The company ended the fourth quarter of fiscal 2014 with 605 stores versus 618 stores a year ago.

Net sales for fiscal 2014 were 826.8 million dollars versus net sales of 797.8 million dollars for fiscal 2013. Comparable store sales increased 3 percent during fiscal 2014. On a GAAP basis, the company reported a loss from continuing operations of 29.4 million dollars, or 0.42 dollars per diluted share, for the 2014 fiscal year, compared to a loss from continuing operations of 47 million dollars, or 0.69 dollars per diluted share for the 2013 fiscal year.

"We are very pleased with our Q4 results led by a 6 percent increase in same-store sales and a 7 million dollar improvement in our operating results," said Gary H. Schoenfeld, President and CEO, "This also marks our 12th straight quarter of positive comparable store sales and for fiscal 2014, a 500 basis point increase in gross margins over this same three year period which has been characterized as a highly promotional environment for our industry."

On a GAAP basis, the company reported a loss from continuing operations of 26 million dollars, or 0.38 dollars per diluted share, for the fourth quarter of fiscal 2014, compared to a loss from continuing operations of 22 million dollars, or 0.32 dollars per diluted share, for the fourth quarter of fiscal 2013.

The company's guidance range for the first quarter of fiscal 2015 contemplates a non-GAAP loss per diluted share from continuing operations of between 0.14 dollars and 0.11 dollars, compared to 0.11 dollar in the first quarter of fiscal 2014. The Company stated that it believes the disruption at the Southern California ports, coupled with severe cold weather in many parts of the country has adversely affected comparable store sales by 2-3 percent and its first quarter non-GAAP loss per diluted share by approximately 0.03 dollars to 0.04 dollars.

The first quarter non-GAAP guidance range is based on the assumptions that comparable store sales to be from minus 1 percent to plus 2 percent; revenue from 167 million dollars to 173 million dollars and gross margin rate, including buying, distribution and occupancy, of 26 percent to 28 percent.