Pacific Sunwear of California Inc.
) witnessed a drastic fall of 14% during the after-market trading
session following the holiday sales results and a disappointing
outlook. The apparel retailer stated that comparable-store sales
for the fourth quarter of fiscal 2013 (the holiday period)
remained flat, as the season appeared to be a tough one. However,
including online sales comps rose 1%.
Pacific Sunwear stated that it kick started the holiday season
on a strong note in November but lost momentum during the first
three weeks of December due to lower traffic and sluggishness
registered in denim. Again it picked pace as Christmas
Given the trend so far, management is anticipating the loss to
aggravate in the fourth quarter and projected loss of 18 cents to
21 cents a share for the fourth quarter based on revenue forecast
of $211 million to $214 million. Earlier, this Zacks Rank #3
(Hold) stock had envisioned loss in the band of 12 cents to 17
cents a share and revenue between $216 million and $225
The Zacks Consensus Estimate for the fourth quarter is a loss
of 14 cents, and we could witness a downward revision in the
estimate, following the company's revised outlook.
Pacific Sunwear is not the only company to have cut its
forecast due to lower-than-expected sales and margin pressure
following intense price competition that resulted in huge
discounts. Retailers that lowered their guidance battered by the
holiday results include
Family Dollar Stores Inc.
American Eagle Outfitters Inc.
L Brands Inc.
Family Dollar, the self-service retail discount store chain,
now projects fiscal-2014 earnings between $3.25 and $3.55 per
share, down from $3.80 to $4.15 forecasted earlier. L Brands, the
specialty retailer of women's intimate and other apparel, now
anticipates fourth-quarter fiscal 2013 earnings to be
approximately $1.60 per share compared to its earlier forecast of
$1.67 to $1.82.
American Eagle, apparel and accessories retailer, now expects
its fourth-quarter fiscal 2013 earnings to dovetail with the
lower-end of previously provided guidance range of 26 cents to 30
cents a share.
Consumer spending environment was not very convincing, and
bargain hunters went from one shop to another to grab the best
AMER EAGLE OUTF (AEO): Free Stock Analysis
FAMILY DOLLAR (FDO): Free Stock Analysis
L BRANDS INC (LB): Free Stock Analysis Report
PAC SUNWEAR CAL (PSUN): Free Stock Analysis
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