PacSun losses continue in Q4

Anaheim, Calif. -- Pacific Sunwear of California announced that total sales for the fourth quarter of fiscal 2010 were $263 million, a decrease of 10% from total sales of $293 million for the fourth quarter of fiscal 2009. Total company same-store sales decreased 7% during the fourth quarter of fiscal 2010.

The company reported a net loss of $35 million, or 53 cents per share, for the fourth quarter of fiscal 2010 compared with a net loss of $36 million, or 56 cents per share, for the fourth quarter of fiscal 2009.

"Our fourth quarter results ended up in line with the lower guidance that we indicated in early January. Our men's business achieved a positive comp for the quarter and year, yet our women's business continued its downward trend of the past two years," said Gary Schoenfeld, president and CEO. "While we believe we have made progress in several critical areas, we clearly have much still to accomplish to turn this business around. Among our highest priorities include reestablishing our spring/summer women's business, mitigating product cost pressures and attracting new customers to PacSun."

Total sales for fiscal 2010 were $930 million, a decrease of 10% from total sales of $1.03 billion during fiscal 2009. Total company same-store sales decreased 8% during fiscal 2010. The company reported a net loss of $97 million, or $1.46 per share, for fiscal 2010 compared with a net loss of $70 million, or $1.07 per share, in fiscal 2009.

For first quarter 2011, the company said it is expecting a GAAP net loss per share of 46 cents to 55 cents, which reflects the continuing impact of maintaining a valuation allowance against deferred tax assets and thus a very low effective tax rate.

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