Business news : PacSun Guides to Low End of Q4 Guidance

Pacific Sunwear of California, Inc. announced today that its fourth fiscal quarter same-store sales through Jan. 6, 2013 increased 1 percent on a continuing operations basis. The surf-themed retailer also said it expects margins to come in lower than previously projected.

The company disclosed that it expects its gross margin percentage for the fourth quarter to be in the range of 21 percent to 22 percent, which represents an increase of approximately 200 to 300 basis points over the same period a year ago. This compares to previous guidance of 22 percent to 25 percent. Based on this gross margin trend, the company expects non-GAAP loss per share from continuing operations to be at the lower end of its previously announced guidance range of 9 cents to 17 cents a share, compared to a 20 cents per share loss in the fourth quarter of fiscal 2011.

"A shift in holiday traffic toward the end of December resulted in a greater proportion of sales during the peak promotional period versus what we had planned," said Gary H. Schoenfeld, president and chief executive officer. "Overall, we continue to be encouraged by our results as we are on track to complete both the quarter and the year with positive comparable store sales, higher margins, continued leverage of our cost base, and improved inventory productivity, all of which are contributing to substantial improvement in our pre-tax operating results."

( SportsOneSource Media )