Pacific Sunwear expects 3Q loss as sales slide

ANAHEIM, Calif. - Teen apparel retailer Pacific Sunwear of California Inc. said Thursday it now expects to report a loss in the fiscal third-quarter after sales fell sharply in October.

The company expects to post a loss of 7 cents to 8 cents per share, including a non-cash impairment charge of 6 cents per share, in the quarter ended Nov. 1. The company also said the result would be hurt by 3 cents per share due to a change in its estimated tax rate.

On Oct. 8, the company said profit would be at the low end of its target, which ranged from break-even to net income of 5 cents per share.

Analysts expect the company to break even in the quarter, according to Thomson Reuters.

October same-store sales fell 11 percent on weakness in all regions except the Midwest.

In the quarter, sales dropped 5 percent to $323.6 million, which was better than the $320 million expected on Wall Street.

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