Pacific Sunwear Sees Q3 Sales Jump 14%; Income Up 20%

Pacific Sunwear of California, Inc. reported that total sales for the third quarter ended October 29, 2005 were $377.5 million, an increase of 13.6% over total sales of $332.4 million for the third quarter of 2004. Net income for the quarterincreased 20% to $40.5 million from $33.7 million last year. Earnings per diluted share increased 23% to 54 cents from 44 cents last year. Same-store sales increased 4.6% for the comparable thirteen-week period ended October 29, 2005.

“I am very pleased with our performance in the third quarter,” commented Seth Johnson, CEO. “Our 20% increase in net income reflects both an improving comp store sales trend and an increase in gross margin. Although we must be cautious about the overall retail environment, I believe we are positioned to achieve strong results for the balance of the year.”

Net income for the first three quarters of fiscal 2005 increased 20% to $79.2 million, compared to $66.2 million for the first three quarters of fiscal 2004. Earnings per diluted share increased 22% to $1.04 compared to 85 cents per diluted share for the first three quarters of fiscal 2004. Total sales for the first three quarters (thirty-nine weeks) of fiscal 2005 were $966.5 million, an increase of 13.7% over total sales of $850.1 million for the same period of fiscal 2004. Same-store sales increased 3.7% during this period.

The company is comfortable with earnings per share estimates for the fourth quarter of 2005 in the range of 62 cents to 63 cents per diluted share. This represents a 19% to 21% increase over last year's fourth quarter earnings of 52 cents per share.

Stock Repurchase Program

During the third fiscal quarter of 2005, the company repurchased a total of 1,028,100 shares of its common stock at an average price of $23.11. These repurchases occurred under the $100.0 million share repurchase authorization approved by the company's board of directors on May 12, 2005. Year to date for fiscal 2005 the company repurchased 1,935,600 shares of its common stock at an average price of $22.60. At the end of the third quarter $71.8 million remains available for future repurchases.

                PACIFIC SUNWEAR OF CALIFORNIA, INC.
                     SUMMARY STATEMENTS OF INCOME
       (unaudited, in thousands except share and per share data)

                        Third Quarter Ended        Nine Months Ended
                      -----------------------   -----------------------
                       OCT. 29,     OCT. 30,     OCT. 29,     OCT. 30,
                         2005         2004         2005         2004
                      ----------   ----------   ----------   ----------
 Net sales            $  377,491   $  332,422   $  966,540   $  850,086
 Gross margin            144,439      124,534      352,145      305,377
 Selling, G&A
  expenses                80,905       70,684      228,618      200,140
                      ----------   ----------   ----------   ----------
 Operating income         63,534       53,850      123,527      105,237
 Interest income, net      1,566          404        3,831        1,176
                      ----------   ----------   ----------   ----------
 Income before taxes      65,100       54,254      127,358      106,413
 Income tax expense       24,616       20,515       48,155       40,238
                      ----------   ----------   ----------   ----------
 Net income           $   40,484   $   33,739   $   79,203   $   66,175
                      ==========   ==========   ==========   ==========
 Net income
  per share,
  basic               $     0.54   $     0.45   $     1.06   $     0.87
                      ==========   ==========   ==========   ==========
 Net income
  per share,
  diluted             $     0.54   $     0.44   $     1.04   $     0.85
                      ==========   ==========   ==========   ==========