Pacific Sunwear Sees 50% Drop in Earnings

Teen apparel retailer Pacific Sunwear of California Inc. said second-quarter earnings fell more than 50% because of weak sales of summer seasonal apparel.

The Anaheim company posted a profit of $3.5 million, or 11 cents a share, down from $7.4 million, or 23 cents, a year earlier. Pacific Sunwear had warned last week that the earnings would sink to 11 cents a share, falling below earlier previous projections.

Revenue rose 18.6% to $156.5 million, but sales at stores open at least a year--a key indicator of industry performance--were down 7.3% for the quarter. Sales of young men’s apparel were off in the mid-teens, and comparable-store sales of girl’s apparel were down 5%, the company said.

The results were disclosed after regular U.S. trading hours. The stock closed at $17.60, up 7 cents a share, on Nasdaq, but dropped to $16.47 in after-hours trading.

“Our outlook for back-to-school is in improving trends in girls’ apparel . . . and men’s being very uncertain with no signs of improvement yet,” Chief Executive Greg Weaver said.