Pacific Sunwear 2Q comps down 24%
ANAHEIM, Calif. Pacific Sunwear of California announced that net sales for the second quarter of fiscal 2009 were $243 million versus net sales from continuing operations of $313 million for the second quarter of fiscal 2008. Total company same-store sales decreased 24% during the period.
The company recorded a net loss of $14.2 million, or 22 cents per diluted share, for the second quarter of fiscal 2009 compared to income from continuing operations of $3.7 million, or 6 cents per diluted share, for the second quarter of fiscal 2008.
“Clearly, we have a lot of work to do to stem our decline in sales and ultimately return to profitability,” stated Gary Schoenfeld, president and CEO. “I remain confident in our ability to take on this challenge. Our branded assortments differentiate us from our vertical competitors, and I believe that in time we will once again make PacSun the favorite place to shop for 15 to 20 year olds.”
Assuming a same-store sales percentage decline in the high-teens to low twenties, and assuming non-cash, pre-tax store asset impairment charges of approximately $10 million, the company would expect to report a loss of approximately 16 cents to 23 cents per share for the third quarter of fiscal 2009.
JCPenney and Dreams play ball
PLANTATION, Fla. Licensed sports merchandiser Dreams announced an agreement with JCPenney that provides customers the ability to purchase from an array of licensed sports memorabilia and apparel directly from the retailer’s online sports fan shop at www.jcp.com. The new site provides an expanded offering of licensed sports merchandise from professional teams, colleges and athletes. The new and expanded online sports fan shop will launch in Oct.
Dreams offers JCPenney the ability to make championship products such as World Series merchandise available to customers.
“Our partnership with Dreams expands our high-quality offering of sports merchandise, providing more shopping options for our customers,” said Steve Lawrence, EVP men’s apparel at JCPenney. “We know that our customers are passionate about their sports teams and our new and expanded online sports fan shop will allow us to offer them their favorite licensed team product in a quick and more convenient manner.”
Survey finds retail execs positive about the future
NEW YORK Retail executives are optimistic about 2010, at least according to a recent survey by auditor KPMG. According to the survey, two-thirds of senior executives in the retail industry expect to see better revenue, profitability and an improving jobs picture in 2010.
In the KPMG survey, which focused on the retail industry specifically, 70% of the executives said they expect business conditions to improve in 2010, with 68% expecting stronger revenue and 66% expecting improved profitability. However, 44% of those surveyed still believe the U.S. economy as a whole could take as long as 2011 or later to substantially recover.
Overall, 84% of retail executives see an improving jobs picture in their industry in 2010, with 52% saying it would be stable and 32% saying it will be better than 2009. At the same time, three-quarters of them said they had already instituted headcount reductions and only 14% were contemplating further such actions.
“This outlook for the year ahead and beyond should be heartening, since the importance of the U.S. retail industry to gross domestic product and overall economic health cannot be overstated. It’s the second largest industry in the U.S. and employs the second highest number of people among all sectors,” said Mark Larson, KPMG global retail sector chair.
When survey respondents were asked to identify the triggers they think will spur a U.S. economic recovery, the most frequently cited factors by far were increased consumer spending (52%), improved consumer confidence (51%) and an increase in jobs/employment (48%).
When asked to identify the biggest challenges they currently faced in dealing with the economic downturn, retail leaders most frequently cited restoring consumer confidence (55%), finding new sources of revenue growth (51%), managing/cutting costs (48%), and adjusting to changing customer demand (46%).