Pacific Sunwear Earnings Increase 56%

ANAHEIM, Calif.–(BUSINESS WIRE)–Feb. 29, 2000–Pacific Sunwear of California Inc. (Nasdaq:PSUN) Tuesday reported record results for the fourth quarter and year ended Jan. 30, 2000.

Net income for the fourth quarter increased 56% to $11,694,000, or $.37 per share, basic, and $.36 per share, diluted, compared with $7,513,000, or $.24 per share, basic, and $.24 per share, diluted, for the fourth quarter of fiscal 1998. Sales for the fourth quarter ended Jan. 30, 2000 were $130.9 million, an increase of 38% over sales of $95.0 million for the fourth quarter of 1998.

Same store sales increased 9.6% for the comparable thirteen week period ended Jan. 30, 2000. (All references to shares and per share amounts reflect a 3-for-2 stock split effected on June 8, 1999.)

Sales for the year ended Jan. 30, 2000 were $436.8 million, an increase of 36% over sales of $321.1 million. Same store sales increased 7.8% for the comparable 52 week period ended Jan. 30, 2000. Net income for fiscal 1999 was $35.3 million, or $1.14 per share, basic, and $1.10 per share, diluted, compared with $23.5 million, or 75 per share, basic, and $.73 per share, diluted, for fiscal 1998.

“We are very pleased with our fiscal 1999 earnings of $35.3 million which represents a 50% increase over fiscal 1998 earnings,” said Greg Weaver, Chairman and CEO.

“Our full year pre-tax income improved to 13.2% of sales. Our balance sheet remains strong, with $33 million in cash at the end of the year and no debt. In 1999 we also very successfully launched our e-commerce business at pacsun.com and further developed and strengthened our d.e.m.o. concept, which we believe is a significant opportunity. As previously announced, we will add 125 new stores in 2000 and expect to reach a projected 575 stores by the end of 2000. Of the 125 new stores in the year 2000, 40 will be our new d.e.m.o. division,” concluded Weaver.

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 1999 (Jan. 30, 2000) operating 384 PacSun stores, 26 PacSun outlet stores and 40 d.e.m.o. stores, for a total of 450 stores in 47 states. The company currently operates 389 PacSun stores, 28 PacSun outlet stores and 40 d.e.m.o. stores for a total of 457 stores in 47 states. PacSun’s Web site address is www.pacsun.com.

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