Young men's customers respond well to PacSun brands

31 Aug '10

4 min read

• Same-store sales decline of 4% to 9%;
• Gross margin rate, including buying, distribution and occupancy costs, of 24% to 26%;
• SG&A expenses in the range of $74 million to $76 million;
• As the Company no longer records income tax benefits against its operating losses, tax expense is expected to be less than $100,000 due to taxable income projected to be generated in certain state and local tax jurisdictions.

For the Full Year
The Company also updated certain of its targets for the full fiscal year ending January 29, 2011 as follows:

• The Company continues to target sequential quarterly improvements in comparable store sales and the prospect of reaching a positive comp in the fourth quarter;
• Merchandise margins are forecasted to improve materially over 2009 but may not be sufficient to fully offset deleveraging of occupancy costs;
• SG&A is now projected at $305 million to $310 million compared to a previous range of $310 million to $320 million;
• Capital expenditures are now projected at the lower end of the Company's previous guidance range of $20 million to $30 million.

Pacific Sunwear of California, Inc. and its subsidiaries is a leading specialty retailer rooted in the action sports, fashion and music influences of the California lifestyle. The Company sells a combination of branded and proprietary casual apparel, accessories and footwear designed to appeal to teens and young adults. As of July 31, 2010, the Company operates 880 stores in 50 states and Puerto Rico.

Pacific Sunwear of California Inc

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