Pacific Sunwear of California Inc. PSUN, a specialty retailer of apparel, accessories and footwear, has been witnessing a downtrend in the Zacks Consensus Estimate following a soft start to fiscal 2015 and a dismal outlook for the second quarter.
Shares of this Zacks Rank #4 (Sell) stock plunged 20.3% since its last earnings release on May 28, and have declined 37.7% year to date. Analysts polled by Zacks are now less constructive on the stock’s future performance. Over the past 7 days, the Zacks Consensus Estimate of a loss of 24 cents and 10 cents for fiscal 2015 and fiscal 2016 has moved up by 4 cents and 3 cents, respectively.
Pacific Sunwear disappointed on the earnings front, posting a negative earnings surprise of 9.1%, after two consecutive quarters of earnings beat. The company recorded adjusted loss of 12 cents a share for the first quarter of fiscal 2015, wider than both the Zacks Consensus Estimate and the year-ago quarter loss per share of 11 cents.
Net sales of this Anaheim, CA-based company were $166.5 million, down 2.7% year over year and short of the Zacks Consensus Estimate of $171 million. Comparable-store sales (comps) fell 2%. The unrest at the West Coast port and unfavorable weather conditions impacted the company’s performance.
Pacific Sunwear envisions its bottom line to range between a loss of 5 cents and earnings of 1 cent per share for second-quarter fiscal 2015, compared with a loss of 3 cents recorded in second-quarter fiscal 2014. Moreover, management expects comps to be in the range of negative 4% to flat.
Stocks that Warrant a Look
Better-ranked retail stocks that look promising include American Eagle Outfitters, Inc. AEO, sporting a Zacks Rank #1 (Strong Buy), Boot Barn Holdings Inc. BOOT and Bebe Stores Inc. BEBE, each carrying a Zacks Rank #2 (Buy).
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