USA: PacSun – Pacific Sunwear – Reports June Decrease

Pacific Sunwear of California Inc (Nasdaq:PSUN) Thursday reported sales of $52.3 million for the five-week period ended July 2, 2000, an increase of 32.5% over sales of $39.5 million for the comparable five-week period ended July 4, 1999. Company same-store sales decreased .1% for the period with PacSun same-store sales flat and d.e.m.o. same-store sales down 1.2%. "Top line sales increased nearly 33% but merchandise margins were lower from June a year ago as sales of summer seasonal merchandise continued to be slow and as the marketplace became highly promotional," stated Greg Weaver, chairman and CEO. "Sales in June in accessories and juniors (girls) continued at double-digit comps. We expect inventories of summer seasonal merchandise to be on plan at the end of July. In July, we begin back to school in several markets and launch the PacSun credit card in our stores nationwide. "We are pleased with our fall merchandise assortment and several changes made in our young men's pant programs. Based on June's results we expect second-quarter earnings to be in the range of $.23 - $.25 vs. $.23 in the second quarter last year," concluded Weaver. Total sales for the first five months (22 weeks) of fiscal 2000 were $201.2 million, an increase of 35.7% over sales of $148.3 million for the first five months (22 weeks) of fiscal 1999. Company same-store sales increased 3.9% for the first five months of fiscal 2000 with PacSun same-store sales up 3.8% and d.e.m.o. same-store sales up 7.1%. Pacific Sunwear is a leading specialty retailer of everyday casual apparel, accessories and footwear designed to meet the needs of active teens and young adults. The company currently operates 440 PacSun stores, 39 PacSun outlet stores and 57 d.e.m.o. stores for a total of 536 stores in 48 states. PacSun's Web site address is