Pacific Sunwear sales are off 20% so far in the third quarter in those parts of the country hit worst by the subprime mortgage meltdown, said SVP and CFO Mike Henry.
Sales have continued to deteriorate from a 10% decline in Q1 to a 20% decline thus far in the third quarter in California, the desert Southwest and Florida, which make up about 24% of the companys store base. Additionally, the Pacific Northwest and Rocky Mountain Great Plains regions saw an 18% drop in September comps.
Not all is bleak, however. Henry said PSUN is focusing inventory on “areas that are performing – like the Midwest, Texas, and the Northeast – and trying to contain inventory size in those difficult areas.”