Pacific Sunwear June Comps Climb; Cuts Guidance on demo Weakness

Pacific Sunwear of California, Inc. total sales for the five weeks of fiscal June ended July 7, 2007 were $132.9 million, an increase of 9.1% over total sales of $121.8 million during the same five week period ended July 8, 2006. Total Company same-store sales increased 4.5% during the same period. By concept, PacSun same-store sales increased 5.7% and demo same-store sales decreased 7.5% compared to the same five week period last year.

Due to the 53rd week in fiscal year 2006, total sales and comparable store sales for fiscal June 2007 are compared to the five-week period ended July 8, 2006.

Total sales for the first nine weeks of second quarter fiscal 2007 ended July 7, 2007, were $230.6 million, an increase of 9.9 percent over total sales of $209.8 million during the same nine-week period ended July 8, 2006 last year. Total Company same-store sales increased 5.3 percent during the same period. By concept, PacSun same-store sales increased 6.4 percent and demo same-store sales decreased 5.4 percent compared to the same nine-week period last year.

Total sales for the first 22 weeks of fiscal 2007 ended July 7, 2007 were $540.0 million, an increase of 6.6 percent over total sales of $506.4 million during the same 22-week period ended July 8, 2006 last year. Total Company same-store sales increased 1.5% during the same period. By concept, PacSun same-store sales increased 3.0 percent and demo same-store sales decreased 10.0% compared to the same 22-week period last year.

Due to a more promotional environment, the Company's second quarter guidance is now 16 cents to 18 cents per diluted share and assumes a mid-single digit same-store sales increase versus a previously estimated low-single digit increase. This range includes a $0.01 per share impact to second quarter earnings as a result of the separation agreement with the Company's former Chief Operating Officer announced June 22, 2007.

The sales results, earnings estimates and store counts reported in this release do not include the impact of the 74 demo store closures.