PacSun 4Q comps slide

ANAHEIM, Calif. Pacific Sunwear of California today announced that total sales of $420.1 million for its 13-week fourth quarter of fiscal 2007, compared with total sales of $455.8 million for the 14-week fourth quarter of fiscal 2006, a 7.8% decrease.

Total company same-store sales decreased 2.2% during the fourth quarter of fiscal 2007. By concept, PacSun same-store sales increased 2.1% and demo same-store sales decreased 31%.

For the fourth quarter of fiscal 2007, the company recorded net income from continuing operations of $7.6 million, or 11 cents per diluted share, compared to $11.5 million, or 16 cents per diluted share, for the fourth quarter of fiscal 2006. Fourth quarter results for each period exclude the income statement impact of One Thousand Steps in both years due to its designation as a discontinued operation during the fourth quarter of fiscal 2007.

"I am very pleased by the continuing progress shown by our PacSun business during the fourth quarter," commented Sally Frame Kasaks, ceo. "We completed a solid holiday season, driven by continued progress in improving our apparel business."

Total sales for fiscal 2007 (52 weeks) ended Feb. 2vwere $1.45 billion, an increase of 0.8% over total sales of $1.44 billion during fiscal 2006 (53 weeks) ended Feb. 3, 2007.

Total company same-store sales increased 0.7% during fiscal 2007. By concept, PacSun same-store sales increased 3.4% and demo same-store sales decreased 19.6%. Due to the 53rd week in fiscal 2006, same-store sales for fiscal 2007 are compared to the 52-week period ended Feb. 3, 2007.

For fiscal 2007, the company recorded a net loss from continuing operations of $18.6 million, or 27 cents per diluted share, compared to net income from continuing operations of $43.9 million, or 62 cents per diluted share, in fiscal 2006. These fiscal year results exclude the income statement impact of One Thousand Steps in both years due to its designation as a discontinued operation during the fourth quarter of fiscal 2007.

For fiscal 2008, the company expects a 3% to 4% increase in PacSun same-store sales. Earnings from continuing operations in fiscal 2008 are expected to be between of 73 cents and 77 cents per diluted share.