The urban casual retailer said fourth-quarter comparable store sales through to Jan. 4 were flat, excluding online sales. Comparable sales increased 1% when online purchases were factored in.
"After a strong start to the holiday season in November, the first three weeks of December were significantly below our expectations primarily due to a decrease in traffic and softness in denim. Business picked up in the final few days prior to Christmas and then finished the month strong as self-shoppers came back to the mall. Overall, it has been a choppy holiday season and we now expect fourth quarter comparable store sales to be flat to 1%, compared to last year," said CEO Gary H. Schoenfeld in a statement.
The Anaheim, Calif.-based business said it now expects a fourth-quarter net loss between 18 cents and 21 cents a share, compared to a net loss of 20 cents a share in the same quarter a year earlier. Analysts surveyed by Thomson Reuters had expected a loss of 14 cents a share.
Revenue is expected within the range of $211 million to $214 million, compared to consensus of $218.52 million.
In pre-market trading, shares have plunged 17.5% to $3.53.
TheStreet Ratings team rates PACIFIC SUNWEAR CALIF INC as a Sell with a ratings score of D-. The team has this to say about their recommendation:
"We rate PACIFIC SUNWEAR CALIF INC (PSUN) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity and poor profit margins."