Total same-store sales soar at Pacific Sunwear
Pacific Sunwear of California Inc. announced that net sales from continuing operations for the first quarter of fiscal 2012 ended April 28, 2012, were $173.8 million versus net sales of $171.9 million for the first quarter of fiscal 2011 ended April 30, 2011. Total Company same-store sales increased 1% during the period.
On a GAAP basis, the Company reported a loss from continuing operations of $15.6 million, or $(0.23) per share, for the first quarter of fiscal 2012, compared to a loss from continuing operations of $28.7 million, or $(0.43) per share, for the first quarter of fiscal 2011.
The loss from continuing operations for the Company's first quarter of fiscal 2012 included a non-cash gain of $6.3 million, or $0.09 per share, related to a derivative liability that resulted from the issuance of the Convertible Series B Preferred Stock (the "Series B Preferred") in connection with the term loan financing the Company completed in December 2011.
On a non-GAAP basis, excluding the non-cash gain on derivative liability and using a normalized annual income tax rate of approximately 37%, the Company's loss from continuing operations for the first quarter of fiscal 2012 would have been $13.7 million, or $(0.20) per share, as compared to a loss from continuing operations of $18.1 million, or $(0.27) per share, for the same period a year ago.
"We had a strong second half of the quarter that led to sales at the high end of our guidance and gross margins which exceeded plan, resulting in close to a $10 million improvement in our pre-tax operating results compared to the first quarter of last year," said Gary H. Schoenfeld, President and Chief Executive Officer.
"As we begin to re-establish PacSun's relevance and connection with our target customers, we achieved positive comps in both genders for the first time since 2005 and are optimistic that these positive trends can continue as reflected in our guidance for the second quarter."
Financial Outlook for Second Fiscal Quarter of 2012
The Company's guidance range for the second quarter of fiscal 2012 contemplates a non-GAAP net loss from continuing operations of between $(0.11) and $(0.16) per share.
The forecasted second quarter non-GAAP loss from continuing operations per share guidance range is based on the following assumptions:
• Same-store sales of negative 1 to plus 4%;
• Gross margin rate, including buying, distribution and occupancy, of 24% to 26%;
• SG&A expenses in the range of $62 million to $64 million; and
• A normalized annual income tax rate of approximately 37%.
The Company's second fiscal quarter of 2012 guidance range excludes the quarterly impact of the change in the fair value of the derivative liability due to the inherently variable nature of this financial instrument.
In accordance with applicable accounting literature and consistent with the Company's financial statement presentation in its fiscal 2011 annual report, the Company has reclassified the results of operations of its closed stores as discontinued operations for all periods presented, as applicable.