Pac Sun Sales Fall

ANAHEIM, Calif., Aug 31 – Pacific Sunwear Inc. said on Thursday that August same store-sales fell 2.5 percent and warned that if the trend continues, third-quarter earnings will miss analyst estimates.

The retailer of casual apparel, accessories and footwear said sales rose 27.1 percent to $71.8 million for the four-week period ended Aug. 27, compared with sales of $56.5 million for the four-week period ended Aug. 29, 1999.

Sales in August were slightly above July sales, said Greg Weaver, chairman and chief executive, in a statement, and the average number of transactions per comparable store were up but the average transaction amount was down due to a continued competitive and promotional environment.

“If the current sales and merchandise margin trends were to continue in September and October then third quarter earnings per share would be below current analyst’s consensus estimates of $0.46,” Weaver said.

Shares of Pacific Sunwear, which operates 553 stores in 48 states, fell $1/16 to $14-7/8 in Nasdaq market trading on Wednesday. The stock has a 52-week range of $11-5/8 to $39.

In other related PacSun news, the company announced the resignation of Gary Hunt, vice president of product development.

Hunt was responsible for the design and production of all the company’s private brand merchandise since October 1993.

The company has begun a search for a Vice President of Design who will be responsible for the fashion direction and design of merchandise for PacSun’s private brands and will report to Michael Scandiffio, executive vice president of Merchandising for PacSun. This position will no longer be responsible for production which will remain the responsibility of the company’s existing sourcing and production group, which will now report to Tim Harmon, president and chief merchandising officer.