Pacific Sunwear reported that total sales for the four weeks of August of fiscal 2003 were $136.7 million, an increase of 24.0% over total sales of $110.2 million for the four weeks of August of fiscal 2002. Company same store sales increased 15.6% for the comparable four-week period ended Aug. 30, 2003 with PacSun same store sales up 15.2% and d.e.m.o. same store sales up 20.3%.
“Our back-to-school sales have been very strong with PacSun and d.e.m.o. both posting double digit comparable store gains,” stated Greg Weaver, Chairman and CEO. “The momentum in our girls, footwear and accessory business continued in August. Mens showed modest improvement with same store sales up mid-single digits for the month. Based upon August's results we are optimistic about the balance of 2003 and have increased our sales and earnings outlook,” concluded Mr. Weaver.
Based on August sales results the company is raising its third quarter earnings per share outlook to $.41 versus its previous comfort with $.39 which was the mean consensus estimate of analysts at the time of the company's second quarter earnings conference call on Aug. 11, 2003. This outlook assumes a combined September and October same store sales increase of 6-8%. The $.41 earnings per share number includes recording restricted stock expense of approximately $.03 per share associated with a performance based restricted stock award made to the CEO in September 1999. The company expects to record this expense during the third quarter assuming that it determines it is probable the cumulative earnings target for the award will be achieved in fiscal 2003. As reported in the company's periodic filings, the company had not previously recorded any expense for this award as the cumulative earnings target had not been met.
For the fourth quarter of fiscal 2003, the company's same store sales guidance is now 5-6% and the earnings per share outlook is being increased $.01 to $.54 versus its previous comfort with $.53 which was the mean consensus estimate of analysts at the time of the company's second quarter conference call on Aug. 11, 2003.
The company announced a three-for-two stock split on Aug. 7, 2003 which is effective after markets close on Sept. 5, 2003. Shares of the company's common stock will begin trading on Sept. 8, 2003 on a split adjusted basis. The earnings per share numbers mentioned in this release are pre-split numbers.
Total sales for the first seven months of fiscal 2003 (30 weeks) were $569.4 million, an increase of 23.1% over total sales of $462.7 million for the first seven months of fiscal 2002 (30 weeks). Company same store sales increased 14.1% for the first 30 weeks of fiscal 2003 with PacSun same store sales up 12.7% and d.e.m.o. same store sales up 27.3%.
