Ahead of the Bell: Pacific Sunwear rises premarket
NEW YORK (AP) — Pacific Sunwear jumped 9 percent in premarket trading after same-store sales easily surpassed Wall Street expectations.
Adjusted losses were smaller than Wall Street had predicted and the surf-themed clothing retailer's 5 percent climb in revenue left analysts totally stoked.
Same-store revenue topped predictions by Roth Capital Partners analyst Dave King, who pointed specifically to stronger profit margins and the largest gains for the men's business since 2004.
Pacific Sunwear posted a 5 percent increase in revenue from stores open at least a year during second quarter. King said he expected growth of 2.5 percent and that Wall Street expected an improvement of 1.6 percent on average.
That is a key figure because it strips away the volatility of stores open and closed recently, providing a clearer peek at a retailer's overall health.
Shares of Pacific Sunwear of California Inc., based in Anaheim, Calif., gained 20 cents, or 9.2 percent, to $2.37 in premarket trading. The stock has traded between $1.11 and $2.54 over the last 12 months.