Pacific Sunwear Of California Swings To Q2 Profit On Gains

(RTTNews) - Pacific Sunwear of California Inc. (PSUN), a specialty retailer focused on teens, Thursday reported a swing to second-quarter profit from a loss last year, reflecting revenue growth and a gain on derivative liability.

Anaheim, California-based Pacific Sunwear's second-quarter net income was $7.5 million or $0.10 per share, compared to net loss of $19.2 million or $0.28 per share last year.

Adjusted loss from continuing operations were $0.03 per share, compared to earnings of $0.02 per share last year. On average, 11 analysts polled by Thomson Reuters expected a loss of $0.03 per share for the quarter. Analysts' estimates typically exclude one-time items.

Pacific Sunwear's revenues for the quarter grew to $211.7 million from $210.1 million last year. Analysts had a consensus revenue estimate of $208.48 million for the quarter.

Comparable store sales for the quarter were 0.3 percent. The company ended the second quarter with 618 stores versus 637 stores a year ago.

The company recorded a gain on derivative liability of $10.4 million compared to a loss of $21.2 million last year.

PSUN closed Thursday's trading at $2.30, up $0.05 or 2.22%, on the Nasdaq. The stock, however, dropped $0.10 or 4.35% in after-hours trade.