Market Overview

D.A. Davidson Reiterates Neutral Rating, $2 PT on Pacific Sunwear of California

Related PSUN
Can Gap Continue To Hold Investors' Attention?
Retail Analyst On Abercrombie & Fitch CEO Departure: Former Guess CEO And Former Abercrombie COO Might Make Good Replacements

In a report published Friday, D.A. Davidson & Co. reiterated its Neutral rating and $2.00 price target on Pacific Sunwear of California (NASDAQ: PSUN).

D.A. Davidson noted, “3Q results demonstrate continued progress. PSUN reported comps, revenue and non-GAAP EPS of 1%, $228.4 million and $(0.03), in line with consensus at 1.3%, $225.9 million and $(0.03). Our estimates were 2.0%, $223.9 million and $(0.02), respectively. GAAP EPS came in at $0.01. Women's comps climbed 2% while men's comps were flat. Gross margin improved over 300bp year-over-year (y/y) to 27.4% driven by a 260bp improvement in merchandise margin. SG&A of $62.1 million was slightly below our estimate of $62.5 million. Both gross margin and SG&A were in line with guidance. The company also announced that based on favorable lease negotiations and store productivity improvements, it now plans on closing 20 fewer stores in 4Q than previously expected.”

Pacific Sunwear of California closed on Thursday at $1.89.

Latest Ratings for PSUN

DateFirmActionFromTo
Jul 2014B RileyDowngradesBuyNeutral
Dec 2013B. Riley & Co.UpgradesNeutralBuy
Dec 2013DA DavidsonMaintainsBuy

View More Analyst Ratings for PSUN
View the Latest Analyst Ratings

Posted-In: D.A. Davidson & Co.Analyst Color Reiteration Analyst Ratings

 

Related Articles (PSUN)

Around the Web, We're Loving...

Get Benzinga's Newsletters