On a GAAP basis, the Company reported a loss from continuing operations of $17.5 million, or $(0.26) per share, for the second quarter of fiscal 2012, compared to a loss from continuing operations of $17.5 million, or $(0.26) per share, for the second quarter of fiscal 2011.
The loss from continuing operations for the Company's second quarter of fiscal 2012 included a non-cash loss of $8.2 million, or $0.12 per share, related to a derivative liability that resulted from the issuance of the Convertible Series B Preferred Stock in connection with the term loan financing the Company completed in December 2011.
On a non-GAAP basis, excluding the non-cash loss on derivative liability and using a normalized annual income tax rate of approximately 37%, the Company's loss from continuing operations for the second quarter of fiscal 2012 would have been $5.8 million, or $(0.08) per share, as compared to a loss from continuing operations of $11.1 million, or $(0.17) per share, for the same period a year ago.
"Our 5% comparable store sales, 260 basis point increase in merchandise margins, and positive operating cash flow for the second quarter further demonstrate our belief that customers are beginning to rediscover PacSun, including our improved merchandising and brand mix, and our distinct Golden State of Mind brand identity," said Gary H. Schoenfeld, President and Chief Executive Officer.
"Newer brands helped drive a 7% comp in our Men's business, which represents our biggest increase in Men's since 2004. Women's continued to improve as well with a 2% comp and higher margins, and we also achieved a 15% increase in online sales."
Financial Outlook for Third Fiscal Quarter of 2012
The Company's guidance range for the third quarter of fiscal 2012 contemplates a non-GAAP net loss per share from continuing operations of between negative 8 cents and flat.
The forecasted third quarter non-GAAP loss from continuing operations per share guidance range is based on the following assumptions:
The Company's third 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.
Apparel/Garments | On 26th Jun 2017
E-commerce operators and TDS (tax deducted at source) deductors can...
Textiles | On 26th Jun 2017
The Tiruppur Exporters' Association (TEA) has again urged Union...
Textiles | On 26th Jun 2017
The export promotion schemes will continue under GST regime, said...
We have broad range of options in durable fabrics
Balavigna Weaving Mills Pvt Ltd
The biggest challenge that the weaving industry faces is high price
'Natural fibres are appreciated for traditional authenticity'
The Indian market has huge potential in technical textiles, and by far,...
Coating at a fibre level is a practice not usually seen in the...
Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...
Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...
"We should not compare India and the West. There are things we do that...
Silvia Venturini Fendi
"Yes, my confidence and positive attitude are my strengths and should be...