Pacific Sunwear of California, Inc. total sales for the month of July were $102.4 million, a decrease of 5.0% over total sales of $107.8 million last year. Total Company same store sales decreased 10.6%. By concept, PacSun same store sales decreased 10.2% and d.e.m.o. same store sales decreased 13.4% compared to last year.

Total sales for the second quarter of fiscal 2006 increased 1.5% to $313.7 million over total sales of $309.1 million during the same period last year. Total Company same store sales decreased 5.5% during the same period. By concept, PacSun same store sales decreased 5.0% and d.e.m.o. same store sales decreased 9.2% compared to the same 13 week period last year.

Total sales through the first half of fiscal 2006 increased 4.2% to $613.6 million over total sales of $589.0 million during the same period last year. Total Company same store sales decreased 3.7% during the same period. By concept, PacSun same store sales decreased 3.7% and d.e.m.o. same store sales decreased 3.8% compared to the same 26 week period last year.

Given the weaker than expected sales performance in July, the Company now believes that second quarter earnings will be in the range of 14 cents to 15 cents per diluted share.