Pacific Sunwear PSUN is trading 6% higher today,changing hands around $3.18 after management postedbetter-than-expected quarterly results overnight. This Alertis an update on the company and we're not recommending anytrades for the model portfolio.
Excluding one-time items, Pacific Sunwear lost $0.17 a sharein the fiscal fourth quarter (ended January), which was$0.02 better than the consensus analyst estimate. Revenuefell 2% from the previous year to $218.6 million, givensevere winter weather trends, but also exceeded expectations.
The retailer posted 2% same-store sales growth in the periodand guided toward 1-4% comparable sales improvement in theApril quarter. While the company is still running at anoperating loss, Pacific Sunwear is seeing higher demand inthe core men's business and appears to be positioned wellfor the spring selling season.
We maintain our One rating on the company and believe thecompany can move up toward $4 by the end of the year.
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