PacSun Profit Soars 44% as Demand Fuels Store Sales

Pacific Sunwear of California Inc. said Monday that its second-quarter profit rose 44% as demand for its surfing- and hip-hop-inspired fashions fueled sales at its two retail chains.

Anaheim-based Pacific Sunwear said earnings for the quarter ended July 31 rose to $19.3 million, or 25 cents a share, from $13.4 million, or 17 cents, a year earlier.

Analysts on average had expected earnings of 23 cents a share. The company’s shares jumped more than 5% in extended-hours trading.

Total sales for the quarter rose 17.2% to $274.8 million.

Same-store sales at the company’s two chains increased 6.8%. Same-store sales rose 7.2% at its PacSun stores and outlets, which sell clothing based on surfer- and skater-wear. At its d.e.m.o. stores, which sell hip-hop clothing and accessories, same-store sales were up 3%.

Pacific Sunwear said it expected its same-store sales to rise 5% in both the third and fourth quarters.

The company said it would earn 39 cents a share in the third quarter and 52 cents a share in the fourth quarter, in line with Wall Street analysts’ estimates.

Pacific Sunwear said it expected to earn $1.35 a share for fiscal year 2004.

The company also said it planned to open about 120 stores in 2005, including 10 PacSun outlet stores, 70 PacSun stores and 40 d.e.m.o. stores.

PacSun shares fell 10 cents, to $18.30, in regular Nasdaq trading, but surged above $19 on the INET electronic brokerage system before trimming gains to trade at $18.42. The company reported results after the markets closed.

Separately, Pacific Sunwear said that it bought back about 1.3 million shares in the second quarter for a total of $24.9 million as part of a repurchase plan authorized by the company’s board of directors in May.

Through the first half of the year, the company repurchased a total of 3.5 million of its shares for about $74.9 million.