PacSun 3Q Net Income Up 79%

Pacific Sunwear of California Inc. (Nasdaq:PSUN) today reported that net income for the third quarter of fiscal 2002 was $15.9 million, or $0.48 per share, basic and diluted, an increase of 79 percent over net income of $8.9 million, or $0.27 per share, basic and diluted, for the third quarter of fiscal 2001.

Sales for the third quarter of fiscal 2002 were $228.2 million, an increase of 24.7 percent over sales of $183 million for the third quarter of fiscal 2001. Same-store sales increased 11.7 percent for the third quarter of fiscal 2002 with PacSun same-store sales up 11.6 percent and d.e.m.o. same-store sales up 12.5 percent.

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“Our third quarter performance was excellent with net income of $15.9 million and earnings per share of $0.48,” stated Greg Weaver, chairman and chief executive officer. “The earnings increase was driven by an 11.7 percent same store sales increase and a 24.7 percent top line sales growth which enabled us to leverage expenses. For the past two quarters we have been able to significantly improve our operating margins.

“Girls, footwear and accessories generated double digit same store sales increases in the quarter with men’s posting a 4 percent increase. d.e.m.o. same-store sales increased 12.5 percent. We feel good about our merchandise assortments and are optimistic about holiday sales,” concluded Weaver.

Net income for the first nine months of fiscal 2002 was $26.5 million, or $0.81 per share basic and $0.79 per share diluted, an increase of 97 percent over net income of $13.4 million, or $0.41 per share, basic and diluted, for the first nine months of fiscal 2001.

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Sales for the first nine months of fiscal 2002 were $580.8 million, an increase of 21.7 percent over sales of $477.2 million for the first nine months of fiscal 2001. Same-store sales increased 7.1 percent for the first nine months of fiscal 2002 with PacSun same-store sales up

*7.3 percent and d.e.m.o. same-store sales up 5.3 percent. Pacific Sunwear is a leading specialty retailer of everyday casual apparel, accessories and footwear designed to meet the needs of active teens and young adults. As of Nov. 2, 2002, the company operated 607 PacSun stores, 71 PacSun outlet stores and 109 d.e.m.o. stores, for a total of 787 stores in 48 states and Puerto Rico. PacSun’s Web site address is www.pacsun.com.