PacSun Profit Rise of 17% Matches Forecasts

Pacific Sunwear of California Inc. said Thursday that its first-quarter profit climbed 17% despite a challenging environment for retailers.

For the three months ended April 30, net income at the Anaheim-based teen apparel retailer rose to $17.6 million, or 23 cents a share, from $15 million, or 19 cents, a year earlier. The results matched Wall Street forecasts.

Sales rose 14% to $280 million. Sales at stores open more than a year -- a key measure of performance -- were up 3%.

Pacific Sunwear did “an admirable job” of meeting its earnings guidance despite certain challenges during the quarter, said analyst Jeffrey Van Sinderen of B. Riley & Co.

The company, which specializes in surf wear and hip-hop-inspired fashions, had some misses on the mix of apparel it offered, he said. But as with other retailers, unusually cold weather and an early Easter this year, which shifted school spring-break vacations up by two weeks, also played a part.

“It just isn’t as warm yet at the end of March as it is in April,” Van Sinderen said. “It’s hard to sell merchandise that is spring, summer, seasonal-type merchandise when it’s cold.” Same-store sales growth was “disappointing but ... not disastrous,” he said, adding that the numbers were expected to moderate somewhat after gains of about 13% in each of the last two years.

The company said “tight management of [its] inventory and expenses” helped boost its results in the quarter. The company reported a net gain of 23 new stores during the quarter.

The results were released after the market closed. Pacific Sunwear shares fell $1.03 to $20.35 on Nasdaq but rose almost $1 in after-hours trading.