PacSun, Guess Results Show Mixed Market
Pacific Sunwear of California Inc. and Guess? Inc. reported quarterly earnings on May 29, and the results reflected a mixed market.
Same-store sales for PacSun's first fiscal quarter of 2014 increased 3 percent, according to a company statement. Net sales were $171.1 million in the 2014 first fiscal quarter compared with $166.4 million the first fiscal quarter of 2013.
PacSun President and Chief Executive Officer Gary H. Schoenfeld said that the first quarter of 2014 was the ninth straight quarter of comparable-store-sales growth for the Anaheim, Calif.–based company. However, the company continues to fight for every dollar.
"I believe that in a tough marketplace we are continuing to attract new customers and great brands to PacSun," Schoenfeld said in a prepared statement. "While we anticipate continued growth in our men's business, the promotional environment that we are seeing in the mall coupled with underperformance in a couple of categories in women's is resulting in a more cautious outlook for the second quarter."
PacSun's guidance for its second quarter was that same-store sales would range from a decline of 5 percent to flat and its revenue would range from $200 million to $210 million.
For Los Angeles–headquartered Guess, same-store sales declined 4 percent for its North American stores for the first quarter of its 2015 fiscal year, which it reported on May 29. The company reported a net loss of $2.1 million compared with adjusted net earnings of $11.7 million for the first quarter of its 2014 fiscal year.
Paul Marciano, chief executive officer of Guess, said the company's recent results were good news. "First-quarter earnings results were slightly better than our expectations. We delivered revenues within the range of our guidance and managed our expenses tightly," he said. For the second quarter of its fiscal 2015 year, Guess forecast its consolidated net revenues will range from $615 to $630 million.