19/03/2014

Pacific Sunwear Posts Q4 Loss

Pacific Sunwear of California, Inc. announced that net sales from continuing operations for the fourth quarter of fiscal 2013 ended February 1, 2014, were $218.6 million versus net sales from continuing operations of $222.8 million for the fourth quarter of fiscal 2012 ended February 2, 2013. Comparable store sales for the fourth quarter of fiscal 2013 increased 2 percent.

The 53rd week in fiscal 2012 caused a decrease in net sales of approximately $9 million for the fourth quarter of fiscal 2013, compared to the fourth quarter last year. The company ended the fourth quarter of fiscal 2013 with 618 stores versus 644 stores a year ago.

"We continue to be encouraged by our positive momentum within a challenging retail environment throughout the year, marked by eight straight quarters of positive comparable store sales, sustained gross margins, and reduced operating costs, all contributing to a significant improvement in our operating performance compared to fiscal 2012," said Gary H. Schoenfeld, President and Chief Executive Officer.

"Looking ahead to fiscal 2014, our key priorities include showcasing our premium brand portfolio through curated assortments, managing inventory with on-trend fashion and speed to market, and continuing to elevate both our in-store and digital experience. Through our Golden State of Mind brand identity, we continually strive to deliver the creativity, diversity and optimism that is quintessentially California and unique to PacSun across all facets of our business."



Fourth Quarter Results

On a GAAP basis, the company reported a loss from continuing operations of $22.0 million, or 32 cents a share, for the fourth quarter of fiscal 2013, compared to a loss from continuing operations of $22.2 million, or $(0.32) per diluted share, for the fourth quarter of fiscal 2012.

The loss from continuing operations for the company's fourth quarter of fiscal 2013 included a non-cash loss of $3.6 million, or $0.05 per diluted share, compared to a non-cash loss of $3.7 million, or $0.05 per diluted share, for the fourth quarter of fiscal 2012, related to the derivative liability that resulted from the issuance of Convertible Series B Preferred Stock (the "Series B Preferred") in connection with the term loan financing the company completed in December 2011.

The company's operating loss for the fourth quarter of fiscal 2013 was $14.6 million, compared to $15.0 million for the same period a year ago.

On a non-GAAP basis, excluding the non-cash loss on the derivative liability, and assuming a tax benefit of approximately $6.3 million, the company would have incurred a loss from continuing operations for the fourth quarter of fiscal 2013 of $11.8 million, or $(0.17) per diluted share, as compared to a loss from continuing operations of $11.6 million, or $(0.17) per diluted share, for the same period a year ago. Adjusting for the 53rd week retail calendar shift, the company would have incurred a non-GAAP loss from continuing operations of $0.03 better than the same period a year ago.

Full Year Results

Total net sales from continuing operations for fiscal 2013 were $797.8 million versus net sales from continuing operations of $784.7 million for fiscal 2012. Comparable store sales increased 2 percent during fiscal 2013.

On a GAAP basis, the company reported a loss from continuing operations of $47.0 million, or $(0.69) per diluted share, for the 2013 fiscal year, compared to a loss from continuing operations of $52.6 million, or $(0.78) per diluted share, for the 2012 fiscal year. The company's operating loss for fiscal 2013 was $21.4 million, as compared to a fiscal 2012 operating loss of $38.4 million.

On a non-GAAP basis, excluding the non-cash loss on derivative liability, and assuming a tax benefit of approximately $12.5 million, the company would have incurred a loss from continuing operations for fiscal 2013 of $23.1 million, or $(0.34) per diluted share, as compared to a loss from continuing operations of $33.0 million, or $(0.49) per diluted share, for the same period a year ago.

Financial Outlook for First Quarter of Fiscal 2014


The company's guidance range for the first quarter of fiscal 2014 contemplates a non-GAAP loss per diluted share from continuing operations of between negative $0.17 and negative $0.12, compared to negative $0.14 in the first quarter of fiscal 2013.

The forecasted first quarter non-GAAP loss from continuing operations per diluted share guidance range is based on the following assumptions:
  • Comparable store sales from 1 percent to 4 percent;
  • Revenue from $169 million to $174 million;
  • Gross margin rate, including buying, distribution and occupancy, of 25 percent to 27 percent;
  • SG&A expenses in the range of $54 million to $55 million; and
  • Applicable non-GAAP adjustments are tax effected using a normalized annual income tax rate.
  • The company's first quarter of fiscal 2014 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.
Discontinued Operations

In accordance with applicable accounting literature and consistent with the company's financial statement presentation in its fiscal 2012 annual report, the company has reclassified the results of operations of its closed stores as discontinued operations for all periods presented, as applicable.

Derivative Liability

In fiscal 2011, as a result of the issuance of the Series B Preferred in connection with the company's $60 million senior secured term loan financing with an affiliate of Golden Gate Capital, the company recorded a derivative liability equal to approximately $15 million, which represents the fair value of the Series B Preferred upon issuance. In accordance with applicable U.S. GAAP, the company has marked this derivative liability to fair value through earnings and will continue to do so on a quarterly basis until the shares of Series B Preferred are either converted into shares of the company's common stock or until the conversion rights expire (December 2021).


As of Mar. 18, 2014, the company operated 617 stores in all 50 states and Puerto Rico.

About Pacsun :

PacSun is dedicated to embracing the amazing diversity and unique sense of adventure that California offers at every turn based on this vast, yet attainable state. For over 30 years we've called California our home, with our offices located in the sun-drenched heart of Orange County. With over 600 stores across the country, we strive to embrace and deliver all aspects of the California lifestyle to our customers, leaving the possibilities limitless.

By press release



More news about Pacikfic sunwear ? Use the search engine at the right top.


Aucun commentaire:

Enregistrer un commentaire