ANAHEIM, Calif., Jan. 10, 2008 (PRIME NEWSWIRE) -- Pacific Sunwear of California, Inc. (Nasdaq:PSUN) today reported that total Company sales for the five weeks of fiscal December ended January 5, 2008 were $234.6 million, a slight increase over total sales of $233.5 million during the same five week period ended January 6, 2007. By concept, PacSun total sales were $213.6 million, a 4.0 percent increase over total sales of $205.4 million during the same five week period last year. demo total sales were $19.3 million, a decrease of 27.3 percent from total sales of $26.6 million during the same five week period last year.
By concept, PacSun same-store sales increased 0.8 percent and demo same-store sales decreased 28.4 percent compared to the same five week period last year. Total Company same-store sales decreased 2.8 percent during the same period. Due to the 53rd week in fiscal year 2006, total sales and comparable store sales for fiscal December 2007 are compared to the five-week period ended January 6, 2007.
Total sales for the first nine weeks of fourth quarter fiscal 2007 ended January 5, 2008, were $355.5 million, an increase of 1.5 percent over total sales of $350.2 million during the same nine-week period ended January 6, 2007 last year. By concept, PacSun same-store sales increased 2.8 percent and demo same-store sales decreased 29.2 percent compared to the same nine-week period last year. Total Company same-store sales decreased 1.1 percent during the same period.
Total sales for the first 48 weeks (year to date) of fiscal 2007 ended January 5, 2008 were $1,380.1 million, an increase of 5.0 percent over total sales of $1,314.2 million during the same 48 week period ended January 6, 2007. By concept, PacSun total sales were $1,243.9 million, an increase of 6.9 percent over total sales of $1,163.7 million during the same 48 week period last year. demo total sales were $128.3 million, a decrease of 11.0 percent from total sales of $144.2 million during the same 48 week period last year.
By concept, PacSun same-store sales increased 3.7 percent and demo same-store sales decreased 18.3 percent compared to the same 48-week period last year. Total Company same-store sales increased 1.2 percent during the same period. Year to date sales figures for both years exclude sales from the 74 demo stores closed earlier this year.
Fourth Quarter GAAP Earnings Per Share Estimate Update
Due to the weaker than expected performance in December, and the impact of currently known lease termination, retention and severance costs associated with demo, One Thousand Steps and the Anaheim distribution center, the Company now expects fourth quarter GAAP earnings to be in the range of $0.11 to $0.14 per diluted share. This earnings range assumes a continuation of the December comp performance during the month of January.
Fourth Quarter Pac-Only Non-GAAP Earnings Per Share Estimate Update
As a result of the Company's previously announced plans to close its demo and One Thousand Steps stores and Anaheim distribution center, and the uncertainty regarding the financial impact those plans may produce, the Company is also providing non-GAAP earnings guidance associated with its core PacSun business on a stand-alone basis. The following non-GAAP earnings range reflects the weaker than expected December sales performance from the PacSun business, but excludes all financial impacts associated with the Company's demo and One Thousand Steps businesses as well as all closure-related charges associated with the Company's Anaheim distribution center. On this basis, the Company currently expects fourth quarter non-GAAP earnings to be in the range of $0.29 to $0.32 per diluted share. This earnings range assumes a continuation of the December comp performance during the month of January.
Reconciliation of GAAP to Non-GAAP Earnings Per Share Estimate Update
Fourth Quarter 2007: Low High
GAAP Earnings per Share Estimate $0.11 $0.14
Add back:
Estimated impact of demo 0.14 0.14
Estimated impact of One Thousand Steps 0.04 0.04
Estimated impact of Anaheim Dist. Ctr. (1) -- --
Non-GAAP Earnings per Share Estimate $0.29 $0.32
(1) Less than $.01 per share.
For more detailed information on December sales results, please call (714) 414-4210 to listen to a recorded commentary.
About Pacific Sunwear of California, Inc.
Pacific Sunwear, currently 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 January 5, 2008, the Company operated 840 PacSun stores, 120 PacSun Outlet stores, 154 demo stores and 6 One Thousand Steps stores for a total of 1,120 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. On January 5, 2008, the Company announced that it would be closing its demo division and had previously announced that it would be closing its One Thousand Steps division as soon as practical.
The Pacific Sunwear of California logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=2087
Pacific Sunwear Safe Harbor
This press release contains "forward-looking statements," including statements with respect to the Company's fourth quarter earnings outlook, including the anticipated impact of closure-related charges associated with the Company's demo and One Thousand Steps stores and its Anaheim distribution center, and comp store sales performance during January 2008. 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. These statements are subject to risks, uncertainties, and other factors, including, among others, risks, uncertainties and factors set forth in our reports and documents filed with the United States Securities and Exchange Commission, 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 SEC. We believe that all forward-looking statements are based on reasonable assumptions when made; however, we caution that it is impossible to predict actual results or outcomes or the effects of risks, uncertainties or other factors on anticipated results or outcomes. In particular, the timing and amount of actual charges and expenses relating to the Company's demo and One Thousand Steps stores and Anaheim distribution center may differ from our initial estimates as plans and activities are finalized. Also, January 2008 comp store sales results and related margin and expense impacts may differ significantly from our current estimates. 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.