Pacific Sunwear of California Inc. reported monday that net income for the second quarter of fiscal 2000 was $7.4 million, or, $.23 per share, basic and diluted, compared with $7.3 million, or $.24 per share, basic, and $.23 per share, diluted, for the second quarter of fiscal 1999.
Sales for the second quarter of fiscal 2000 were $132.0 million, an increase of 31.3 percent over sales of $100.5 million for the second quarter of fiscal 1999. Same store sales decreased 1.4 percent for the second quarter of fiscal 2000 with PacSun same store sales down 1.4 percent and d.e.m.o. same store sales down .3 percent.
“Earnings for the second quarter were flat compared to last year, but I believe we successfully managed through a challenging period in the teen apparel sector. Merchandise margins held up well in a very promotional environment. Our spring/summer inventories were well controlled and were actually down per square foot at quarter end. We opened 94 new stores in the first half of 2000, including 61 PacSun stores, 14 PacSun Outlet stores and 19 d.e.m.o. stores,” said Greg Weaver, chairman of the board and chief executive officer.
“Our new stores are performing to plan. By year end we expect to operate 587 stores with square footage growth of 40 percent for the year. In 2001, we plan to open 125 new stores. We are happy with our fall assortments and early fall product selling is encouraging,” concluded Weaver.
Net income for the first half of fiscal 2000 increased 16 percent to $13.2 million, or $.42 per share, basic, and $.41 per share, diluted compared to $11.3 million, or $.37 per share, basic, and $.36 per share, diluted, for the first half of fiscal 1999. Sales for the first half of fiscal 2000 were $244.5 million, an increase of 34.4 percent over sales of $181.9 million for the first half of fiscal 1999. Same store sales increased 2.4 percent for the first half of fiscal 2000 with PacSun same store sales up 2.2 percent and d.e.m.o. same store sales up 6.1 percent.
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 445 PacSun stores, 40 PacSun outlet stores and 59 d.e.m.o. stores for a total of 544 stores in 48 states. PacSun’s Web site address is www.pacsun.com.
The matters discussed in this news release with respect to sales, fall merchandise, new store performance and new store openings are forward-looking statements and involve risks and uncertainties, including changes in consumer demands and preferences, competition from other retailers and uncertainties generally associated with apparel retailing. The historical results achieved are not necessarily indicative of future prospects of the company.
More information on factors that could affect the company’s financial results is included in the company’s Report on Form 10-K for the year ended Jan. 30, 2000 filed with the Securities and Exchange Commission.