PacSun announces Q4 earnings results

14 Mar '08

4 min read

"I am very pleased by the continuing progress shown by our PacSun business during the fourth quarter," commented Sally Frame Kasaks, Chief Executive Officer. "We completed a solid holiday season, driven by continued progress in improving our apparel business."

Total sales for fiscal 2007 (52 weeks) ended February 2, 2008 were $1,454.2 million, an increase of 0.8 percent over total sales of $1,442.0 million during fiscal 2006 (53 weeks) ended February 3, 2007.

Total Company same-store sales increased 0.7 percent during fiscal 2007. By concept, PacSun same-store sales increased 3.4 percent and demo same-store sales decreased 19.6 percent. Due to the 53rd week in fiscal 2006, same-store sales for fiscal 2007 are compared to the 52-week period ended February 3, 2007.

For fiscal 2007, the Company recorded a net loss from continuing operations of $18.6 million, or $(0.27) per diluted share, compared to net income from continuing operations of $43.9 million, or $0.62 per diluted share, in fiscal 2006. These fiscal year results exclude the income statement impact of One Thousand Steps in both years due to its designation as a discontinued operation during the fourth quarter of fiscal 2007.

On a non-GAAP basis, excluding all additional income statement impacts of the Company's demo business, which is expected to become a discontinued operation during the first quarter of fiscal 2008, and other non-recurring charges, the Company generated net income from continuing operations of $47.9 million, or $0.69 per diluted share, for fiscal 2007 compared to $61.9 million, or $0.87 per diluted share, for fiscal 2006.

Financial Outlook for Fiscal 2008:
Assuming a 3 to 4 percent increase in PacSun same-store sales for the fiscal year ending January 31, 2009 (fiscal 2008), the Company expects earnings from continuing operations in fiscal 2008 of $0.73 to $0.77 per diluted share. For the first quarter of fiscal 2008 ending May 3, 2008, and also assuming a 3 to 4 percent increase in PacSun same-store sales for the quarter, the Company expects to report a net loss from continuing operations of $(0.06) to $(0.08) per diluted share.

These earnings ranges exclude demo since it will be reported as a discontinued operation in quarterly filings beginning with the first quarter of fiscal 2008 ending May 3, 2008. Accordingly, the earnings ranges do not include the anticipated impact of any lease termination or other liquidation-related charges that will occur associated with the Company's discontinuation of its demo business.

Pacific Sunwear of California Inc

More Pacific Sunwear News... More Fashion News - United States Of America...