ANAHEIM, Calif., May 10, 2007 (PRIME NEWSWIRE) -- Pacific Sunwear of California, Inc. (Nasdaq:PSUN) today reported that total sales for the four weeks of fiscal April ended May 5, 2007 were $79.3 million, a decrease of 10.5 percent over total sales of $88.5 million during the same four week period ended May 6, 2006. Total Company same-store sales decreased 16.5 percent during the same period. By concept, PacSun same-store sales decreased 16.3 percent and demo same-store sales decreased 18.8 percent compared to the same four week period last year. Due to the 53rd week in fiscal year 2006, total sales and comparable store sales for fiscal April 2007 are compared to the four-week period ended May 6, 2006.
Total sales for the first quarter (13-weeks) of fiscal 2007 ended May 5, 2007 were $309.3 million, an increase of 4.3 percent over total sales of $296.5 million during the same 13-week period ended May 6, 2006 last year. Total Company same store sales decreased 1.2 percent during the same period. By concept, PacSun same store sales increased 0.5 percent and demo same store sales decreased 12.1 percent compared to the same 13-week period last year.
After a much weaker than expected April, the Company is updating its outlook for the first half of fiscal 2007. The Company now anticipates first quarter earnings to be a loss of $0.04 to $0.05 per diluted share and second quarter earnings, assuming a low single digit second quarter same-store-sales increase, to be in the range of $0.18 to $0.20 per diluted share.
As previously announced, the Company is in the process of closing 74 underperforming demo stores. The sales results, earnings estimates and store counts reported in this release do not include the impact of the 74 demo stores being closed.
For more detailed information on April sales results, please call (714) 414-4210 to listen to a recorded commentary.
About Pacific Sunwear of California, Inc.
Pacific Sunwear, operating under three distinct retail concepts, is a leading specialty retailer of everyday casual apparel, accessories and footwear designed to meet the needs of active teens and young adults. As of May 5, 2007, the Company operated 845 PacSun stores, 117 PacSun Outlet stores, 152 demo stores and 9 One Thousand Steps stores for a total of 1,123 stores in 50 states and Puerto Rico. PacSun's website address is www.pacsun.com, merchandise carried at demo stores can be found at www.demostores.com and information about One Thousand Steps can be found at www.onethousandsteps.com.
The Pacific Sunwear of California logo is available at http://www.primezone.com/newsroom/prs/?pkgid=2087
Pacific Sunwear Safe Harbor
This press release contains "forward-looking statements" including, without limitation, statements regarding the Company's earnings estimates for the first and second quarters of fiscal 2007 and its related assumption of low single digit comparable store sales results for the second quarter of fiscal 2007. In each case, these statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company intends that these forward-looking statements be subject to the safe harbors created thereby. The Company is hereby providing cautionary statements identifying important factors that could cause the Company's actual results to differ materially from those projected in such forward-looking statements. The statements regarding fiscal 2007 earnings estimates are not historical facts and involve estimates, assumptions and uncertainties which could cause actual results to differ materially from those expressed in such forward-looking statements. Such uncertainties which could adversely affect our business and results include, among others, the following factors: our estimates of selling, general and administrative expenses for the first quarter may be exceeded; our assumption of comparable same store sales during the second quarter of fiscal 2007 may be wrong and actual comparable same store sales may be lower than estimated; we may experience higher than anticipated markdowns and/or higher than estimated selling, general and administrative costs in the second quarter; changes in consumer demands and preferences may adversely affect our performance; we may experience higher than anticipated costs associated with the previously announced closure of 74 demo stores; our sales and results may be adversely affected by competition from other retailers and uncertainties generally associated with apparel retailing and merchandising/fashion sensitivity; sales from private label merchandise, expansion and management of growth; reliance on key personnel; dependence on a single distribution facility; economic impact of natural disasters, terrorist attacks or war/threat of war; shortages of supplies and/or contractors, as a result of natural disasters or terrorist acts, could cause unexpected delays in new store openings, relocations or expansions; reliance on foreign sources of production; our new concept (One Thousand Steps) is untested and may not be profitable or successful; credit facility financial covenants and other risks outlined in the company's SEC filings, including but not limited to the Annual Report on Form 10-K for the year ended February 3, 2007 and subsequent periodic reports filed with the Securities and Exchange Commission. Historical results achieved are not necessarily indicative of future prospects of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company assumes no obligation to update or revise any such forward-looking statements to reflect events or circumstances that occur after such statements are made. Nonetheless, the Company reserves the right to make such updates from time to time by press release, periodic report or other method of public disclosure without the need for specific reference to this press release. No such update shall be deemed to indicate that other statements not addressed by such update remain correct or create an obligation to provide any other updates.