PacSun Announces Comeback Strategy
Pacific Sunwear of California Inc. announced on Nov. 9 that same-store sales for its third quarter declined 6.7 percent, compared to an increase of 4.6 percent over the same period in the previous year. The company has a three-point plan to return the retailer back to its commanding position in sales, according to interim Chief Executive Sally Frame Kasaks, who outlined the company’s plans in a Nov. 10 conference call with analysts.
Kasaks said one of her goals would be to improve the appearance of the stores by reducing the density of its inventory. She also hoped to increase juniors business and to make the company’s marketing efforts more compelling.
Liz Pierce, a retail analyst for Roth Capital Partners, based in Newport Beach, Calif., said Pacific Sunwear is taking the right steps by concentrating on juniors business. In a Nov. 13 research note, she noted that juniors made up 29 percent of Pacific Sunwear’s business in its 2005 fiscal year. She thinks it could eventually reach up to 50 percent of the retailer’s business with the right merchandising strategy.
Kasaks also announced that Pacific Sunwear will slow the pace of its store openings. In fiscal 2007, square footage would only grow 4 percent. The company plans to open 40 new stores and expand or relocate 25 stores in the upcoming year.
Kasaks is a director of the company. She took on the position of the interim chief executive after Seth Johnson resigned on Oct. 2. —Andrew Asch
