Pacific Sunwear of California, Inc. saw a 0.5% increase in fiscal October net sales to $85.3 million from $84.8 million for the same period last year. Total company same-store sales decreased 0.8% during the same period. By concept, PacSun same-store sales increased 2.3% and demo same-store sales decreased 22.8% compared to the same four week period last year.
Total sales for the first 39 weeks (year to date) of fiscal 2007 ended November 4, 2007 were $1.02 billion, an increase of 6.3% over total sales of $964.0 million during the same 39-week period ended November 4, 2006. Total Company same-store sales increased 2.0% during the same period. By concept, PacSun same-store sales increased 4.0% and demo same-store sales decreased 13.7% compared to the same 39-week period last year. Year to date sales figures for both years exclude sales from the 74 demo stores closed earlier this year.
The company is raising its third quarter earnings outlook to 14 cents to 15 cents per diluted share from its previous guidance of 10 cents to 13 cents per diluted share. This earnings estimate does not include the impact of store asset impairment charges of approximately $48 million, or 41 cents per diluted share, and inventory and other reserve charges of approximately $5 million, or 4 cents per diluted share, associated with the company's previously announced decision to seek strategic alternatives for its demo stores and to close its One Thousand Steps stores. On a GAAP basis, inclusive of these charges, the company expects to report a third quarter loss per share of approximately 30 cents to 31 cents.
