ANAHEIM, Calif., Nov. 8, 2007 (PRIME NEWSWIRE) -- Pacific Sunwear of California, Inc. (Nasdaq:PSUN) today reported that total sales for the four weeks of fiscal October ended November 3, 2007 were $85.3 million, an increase of 0.5 percent over total sales of $84.8 million during the same four week period ended November 4, 2006. Total Company same-store sales decreased 0.8 percent during the same period. By concept, PacSun same-store sales increased 2.3 percent and demo same-store sales decreased 22.8 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 October 2007 are compared to the four-week period ended November 4, 2006.
Total sales for the 13-weeks of third quarter fiscal 2007 ended November 3, 2007, were $373.1 million, an increase of 7.9 percent over total sales of $345.7 million during the same 13-week period ended November 4, 2006. Total Company same-store sales increased 5.0 percent during the same period. By concept, PacSun same-store sales increased 7.7 percent and demo same-store sales decreased 18.3 percent compared to the same 13-week period last year.
Total sales for the first 39 weeks (year to date) of fiscal 2007 ended November 4, 2007 were $1,024.6 million, an increase of 6.3 percent over total sales of $964.0 million during the same 39-week period ended November 4, 2006. Total Company same-store sales increased 2.0 percent during the same period. By concept, PacSun same-store sales increased 4.0 percent and demo same-store sales decreased 13.7 percent compared to the same 39-week period last year. Year to date sales figures for both years exclude sales from the 74 demo stores closed earlier this year.
The Company is raising its third quarter earnings outlook to $0.14 to $0.15 per diluted share from its previous guidance of $0.10 to $0.13 per diluted share. This earnings estimate does not include the impact of store asset impairment charges of approximately $48 million, or $0.41 per diluted share, and inventory and other reserve charges of approximately $5 million, or $0.04 per diluted share, associated with the Company's previously announced decision to seek strategic alternatives for its demo stores and to close its One Thousand Steps stores. On a GAAP basis, inclusive of these charges, the Company expects to report a third quarter loss per share of approximately $(0.30) to $(0.31). The Company intends to issue its third quarter earnings release on November 20, 2007 after the close of regular stock market hours.
For more detailed information on October 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 November 3, 2007, the Company operated 838 PacSun stores, 119 PacSun Outlet stores, 154 demo stores and 9 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 October 24, 2007, the Company announced that it would be seeking strategic alternatives for its demo division and would be closing down its One Thousand Steps division as soon as practical.
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Pacific Sunwear Safe Harbor
This press release contains "forward-looking statements," including statements with respect to the Company's third quarter earnings outlook, the amount and timing of charges and expenses relating to demo and One Thousand Steps, and the Company's decision to seek strategic alternatives for its demo stores and to close its One Thousand Steps stores. 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 may differ from our initial estimates as plans and activities are finalized. 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.