Industry News

Pacific Sunwear Q3 Sales Down 17%; Loss Widens

Surfersvillage Global Surf News, 17 November, 2009 : - - Pacific Sunwear of California, Inc. announced that net sales for the third quarter of fiscal 2009 ended Oct. 31 were $268 million versus net sales from continuing operations of $324 million for the third quarter of fiscal 2008 ended November 1, 2008. Total company same-store sales decreased 18% during the period.

The company recorded a net loss of $10.9 million, or 17 cents per diluted share, for the third quarter of fiscal 2009 compared to net loss from continuing operations of $3.5 million, or 5 cents per diluted share, for the third quarter of fiscal 2008.

"Through the first 11 weeks of the third quarter, our business performed at the higher end of our internal expectations led by some improving trends in our Young Mens business," stated Gary Schoenfeld, President and Chief Executive Officer. "We've since seen a precipitous decline across both genders during the last two weeks of the third quarter and into the first two weeks of the fourth quarter. Thus, while we still expect an improvement over the fourth quarter last year, we remain intently focused on several key initiatives toward getting this company turned around."

Financial Outlook for Fourth Fiscal Quarter of 2009

Assuming a same-store sales percentage decline in the low twenties for the fourth quarter of fiscal 2009, the company expects to report a loss of approximately 28 cents to 35 cents per share. This earnings range includes estimated non-cash store asset impairment charges of approximately $5 million. Any non-cash tax valuation allowance charges or additional store asset impairment charges that the Company may incur during the fourth quarter would increase the level of losses for the quarter.

www.pacsun.com

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