Pacific Sunwear, a specialty retailer rooted in the sports, fashion and music influences of the California lifestyle, reported net sales for the second quarter of fiscal 2012 were 210.3 million dollars versus net sales of 200.9 million dollars for the same period last year.
On a GAAP basis, the company reported a loss from continuing operations of 17.5 million dollars, or 0.26 dollars per share, for the second quarter of fiscal 2012, compared to a loss from continuingoperations of 17.5 million dollars, or 0.26 dollarsper share, for the second quarter of fiscal 2011. The loss from continuing operations for the company’ssecond quarter of fiscal 2012 included a non-cashloss of 8.2 million dollars, or 0.12 dollars per share,related to a derivative liability that resulted from the issue of the Convertible Series B Preferred Stock in connection with the term loan financing the company completed in December 2011.
On a non-GAAP basis, excluding the non-cash loss on derivative liability and using a normalized annual income tax rate of approximately 37 percent, the company’s loss from continuing operations for the second quarter of fiscal 2012 would have been 5.8 million dollars, or 0.08 dollars per share, as compared to a loss from continuing operations of 11.1 million dollars, or 0.17 dollars per share, for the same period a year ago.
“Our 5 percent comparable store sales, 260 basispoint increase in merchandise margins, and positiveoperating cash flow for the second quarter furtherdemonstrate our belief that customers are beginning to rediscover our improvedmerchandising and brand mix, ” said Gary H. Schoenfeld, President and Chief Executive Officer. “Newer brands helped drive a 7 percent comp in our men’s business, which represents our biggestincrease in men’s since 2004. Women’s continued to improve as well with a 2 percent comp and higher margins, and we also achieved a 15 percent increase in online sales.”
As of August 22, 2012, the company operates 727 stores in all 50 states and Puerto Rico.