MARCH 03, 2004 -- Pacific Sunwear of California reported stronger Q4 and FY results. Net income for Q4 increased 48% to $34.3 million, or $0.44 per share, basic, and $0.43 per share, diluted, compared to $23.2 million, or $0.31 per share, basic and diluted, for Q4 2002.
Total sales for Q4 were $326.3 million, an increase of 22.9%. Same-store sales increased 12.0% for the comparable 13-week period ended January 31, 2004.
"I am pleased to report record quarterly earnings for PacSun of $34.3 million, which was a 48% increase over fourth quarter last year," stated Greg Weaver, COB/CEO. "For fiscal 2003, we achieved a 61% increase in net earnings with operating income of $128.2 million, or 12.3% of sales. At PacSun, we are improving market share with the help of multiple brands and the strength of our footwear and accessory businesses. At d.e.m.o., we substantially improved our overall merchandising in 2003, particularly in our girls and accessory businesses. d.e.m.o. same-store sales grew 21% in 2003 on top of a 12.4% same store sales increase in 2002. For 2003, average new d.e.m.o. store sales are trending at nearly $1.1 million. Sales per square foot for the d.e.m.o. chain were $405 per foot for the year. For fiscal 2004, we plan to open 110 net new stores and expand or relocate approximately 35 stores with square footage growing approximately 15%. The 110 net new stores include 65 PacSun stores, 5 PacSun Outlet stores, and 40 d.e.m.o. stores. This will take the year-end 2004 store count to 987. Our financial guidance for fiscal 2004 is for earnings per share growth of 20% or better compared to 2003. Earnings growth of 20% equates to $1.22 and assumes same-store sales growth of approximately 5%. The $1.22 equates to a pre-tax margin of approximately 13%."
Total sales for fiscal 2003 were $1.04 billion, an increase of 22.9% over sales of $846.4 million for fiscal 2002. Same-store sales increased 13.1% for the comparable 52-week period ended January 31, 2004. Net income for fiscal 2003 increased 61% to $80.2 million, or $1.05 per share, basic, and $1.02 per share, diluted, compared to $49.7 million, or $0.67 per share, basic, and $0.66 per share, diluted, for fiscal 2002.
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. The company ended fiscal 2003 operating 677 PacSun stores, 79 PacSun outlet stores and 121 d.e.m.o. stores, for a total of 877 stores in 50 states and Puerto Rico. As of March 2, 2004, the company operated 680 PacSun stores, 79 PacSun outlet stores and 123 d.e.m.o. stores for a total of 882 stores in 50 states and Puerto Rico.
