Pacific Sunwear of California has swung to a third-quarter profit after Black Friday comparable store sales growth.
Net income reached $948,000 for the quarter ending October 27, compared to a loss of $17.6 million the year before.
Excluding $1.7 million in store closure related charges and a one-off gain of $5.6 million, losses from continuing operations narrowed to $1.8 million, compared to a $7.1 million loss the prior year.
Net sales edged up 0.7% to $228.4 million, compared to $226.8 million the same period last year, while same-store sales climbed 1%.
“We continue to see evidence of our turnaround strategies taking hold with our third straight quarter of positive comparable store sales growth and a 260 basis point improvement in merchandise margins, on an adjusted basis,” said CEO and president Gary Schoenfeld.
“After a slow start to the first few weeks of back-to-school, we performed well during the peak of the selling season which translated to our first positive sales comp in the third quarter since 2007 and a more than $10 million improvement in our pre-tax operating results.”
“With high single-digit comps on Black Friday, we finished the month of November at a 1% sales comp, similar to the third quarter,” Schoenfeld added.
The retailer expects fourth-quarter revenue to be between $225 million and $235 million, while adjusted loss per share from continuing operations is forecast to range from $0.09 to $0.17.
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