Pacific Sunwear is an Anaheim-based company that makes clothes inspired from surfing. On Monday, the company saw a decline in its share prices as a response to the third quarter loss reported by the company. The loss reported was three times to what the analysts on Wall Street had thought of. The share price came down by 20% and closed at a market value of $330 million.

For the coming quarter, Pacific has set the loss at around $17.9 million to $22.4 million, whereas the analysts were hoping for a loss of around $7 million only. The reason for this outlook has been attributed to the fact that the sales of clothes for both men and women saw a “precipitous decline” in the last three weeks only. The same-store sales of the company are expected to be reduced by 20% from the previous year this time. On October 31, the company issued this outlook along with its third quarter results.

The analysts were hoping for a loss of $12.8 million but the company showed a loss of approximately $10.9 million. The sales were also a bit ahead of the analyst’s expectations of $260 million to $268.3 million. Gary Schoenfeld, who has joined Pacific as the Chief Executive at the beginning of the year only, is making his best attempts to improve the stores and is also shifting the focus to brand clothing’s of stores like Quicksilver Inc. and Volcom Inc.

This entry was posted on Tuesday, November 17th, 2009 at 2:19 pm and is filed under Venture Capital News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.