Sunwear of California
) is expected to report Q4 earnings with a conference
call scheduled for 4:30 p.m. ET.
Analysts are looking for a profit of 30c on
revenue of $391.9M. The consensus range is 29c to 31c for EPS, and revenue of
$358.04M to $422.76M, according to First Call. The company recently reported its
February same store sales were up 6% vs. consensus of down -0.4%. On January 10,
the company forecast Q4 EPS in the range of 29c to 32c based on
weaker-than-expected performance in December. Analysts believe retailers will be
impacted by factors such as the consumer spending slowdown; higher gas and food
prices, as well as turmoil in the housing and credit markets, are causing
consumers to spend less.
Friedman Billings believes that the companies which
will continue to outperform are those aimed at the teen/young adult shoppers, as
they aren't as impacted by macroeconomic pressures, possess more disposable
income and want to keep buying new clothes. The firm has an Outperform rating on
Pacific Sunwear. Roth Capital expects the company to offer conservative
guidance, and advises buying the stock on any material weakness following the
company's results. Roth believes the company is merchandising its juniors'
business effectively, and the firm is pleased that the company will replace some
of its footwear and accessories merchandise with apparel.