ANAHEIM, Calif., July 22, 2009 (GLOBE NEWSWIRE) -- Pacific Sunwear of California, Inc. (Nasdaq:PSUN), today announced updated earnings expectations for the second quarter of fiscal 2009.
Same-store sales for the second quarter are projected to decrease by approximately 24% versus original expectations of negative 17% to 20%. Additionally, the Company expects a lower effective income tax rate and higher store asset impairment charges for the quarter. As a result, the Company now expects to report a second quarter loss of $0.22 to $0.24 per share versus initial guidance for the quarter of a loss of $0.11 to $0.17 per share issued on May 21, 2009.
The Company estimates its fiscal 2009 effective income tax rate will be approximately 38%, which will result in an income tax rate for the second quarter of approximately 35% versus previous guidance of 43%. The decrease in the tax rate will negatively impact second quarter earnings results by approximately $0.03 per share.
The Company expects to incur approximately $5.5 million in non-cash, store asset impairment charges during the second quarter. These impairment charges are approximately $2.7 million, or $0.02 per share, higher than previously anticipated.
The Company also reported that it has had no direct borrowings outstanding under its credit facility at any time during the second quarter.
The Company will report its fiscal 2009 second quarter earnings results on August 20, 2009 after the market close. Management will host a conference call on August 20, 2009 at 4:30 p.m. EDT / 1:30 p.m. PDT.
About Pacific Sunwear of California, Inc.
Pacific Sunwear is a leading lifestyle specialty retailer rooted in the youth culture of California. The Company sells casual apparel with a limited selection of accessories and footwear designed to meet the needs of teens and young adults. The Company currently operates 917 stores in 50 states and Puerto Rico. PacSun's website address is www.pacsun.com.
The Pacific Sunwear of California logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=2087
Pacific Sunwear Safe Harbor
This press release contains "forward-looking statements" including, without limitation, statements regarding the Company's expected earnings per share, sales results, income tax rate and impairment charges for the second quarter of fiscal 2009, and the Company's anticipated income tax rate for fiscal 2009. 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 not historical facts and involve estimates, assumptions and uncertainties that could cause actual results to differ materially from those expressed in such forward-looking statements. Uncertainties that could adversely affect our business and results include, among others, the following factors: higher than anticipated declines in same-store sales; additional adverse changes in economic conditions or sustained adverse economic conditions generally; additional adverse changes in consumer spending; changes in consumer demands and preferences; higher than anticipated markdowns and/or higher than estimated selling, general and administrative costs; competition from other retailers and uncertainties generally associated with apparel retailing; merchandising/fashion sensitivity; sales from private label merchandise; the impact of management and organizational changes; reliance on key personnel; 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, renovations or expansions; reliance on foreign sources of production; 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 January 31, 2009 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.