Pacific Sunwear Announces Resignation of Christine Lee, SVP of Women's Merchandising and Design; and Comments on Second Quart...
July 31 2014 - 8:00AM
Pacific Sunwear of California, Inc. (Nasdaq:PSUN) (the "Company")
today announced the resignation of Christine Lee, its Senior Vice
President of Women's Merchandising and Design. Brieane
Breuer, who joined PacSun in 2007 and is the Company's current Vice
President of Women's Design, will assume the additional
responsibilities of women's merchandising on an interim basis.
Ms. Breuer received her Master's Degree in fashion design and
styling from Istituto Marangoni and over the past 13 years has held
various merchandising and design roles at high-end fashion brands
such as Valentino, as well as at Abercrombie &
Fitch.
The Company also stated that it expects its non-GAAP loss from
continuing operations per diluted share for the second quarter of
fiscal 2014 to be generally in line with analysts' consensus
estimates of $(0.03), which compares favorably to the Company's
previously issued non-GAAP guidance of $(0.08) to $(0.02).
"Sales trends across the business have generally improved in
both June and July with Men's again on track to achieve a positive
comp for the second quarter," said Gary H. Schoenfeld, President
and CEO of Pacific Sunwear. "Based on the strength of our brand
assortment, along with our leadership position with the Men's
jogger for back-to-school, we expect Men's to continue its positive
momentum as we look ahead to the third quarter."
Mr. Schoenfeld continued: "With respect to our Women's business,
we are focused on four key areas: (1) Increasing the
penetration of brands, which further differentiates us from our
competitors in the mall; (2) Leveraging the vision of our design
team even more by leading with new trends; (3) Strengthening our
non-apparel business; and (4) Driving growth online."
"I appreciate all of the efforts Christine has put forth over
the past four years to help re-position the PacSun business," said
Mr. Schoenfeld. "I am eager to work even more closely with Brie and
the rest of our Women's team to successfully tackle our key
initiatives. I am excited by several recent creative concepts
coming from our design team and optimistic that the Women's
business can soon get back to positive comps as well."
About Pacific Sunwear of California,
Inc.
Pacific Sunwear of California, Inc. and its subsidiaries
(collectively, "PacSun" or the "Company") is a leading specialty
retailer rooted in the action sports, fashion and music influences
of the California lifestyle. The Company sells a
combination of branded and proprietary casual apparel, accessories
and footwear designed to appeal to teens and young adults. As
of July 31, 2014, the Company operates 618 stores in all 50
states and Puerto Rico. PacSun's website address
is www.pacsun.com.
Pacific Sunwear Safe Harbor
This press release contains "forward-looking statements"
including, without limitation, the statements made by the Company
and Mr. Schoenfeld in the third, fourth, fifth and sixth
paragraphs. In each case, these statements are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. The Company intends that these forward-looking
statements be subject to the safe harbors created thereby. These
statements are not historical facts and involve estimates,
assumptions and uncertainties that could cause actual results to
differ materially from those expressed in such forward-looking
statements. Uncertainties that could adversely affect the Company's
business and results include, among others, the following factors:
increased sourcing and product costs; adverse changes in U.S. and
world economic conditions generally; adverse changes in consumer
spending; changes in consumer demands and preferences; adverse
changes in same-store sales; higher than anticipated markdowns
and/or higher than estimated selling, general and administrative
costs; currency fluctuations; competition from other retailers and
uncertainties generally associated with apparel retailing;
merchandising/fashion risk; lower than expected sales from private
label merchandise; reliance on key personnel; economic impact of
natural disasters, terrorist attacks or war/threat of war;
shortages of supplies and/or contractors as a result of natural
disasters or terrorist acts, which could cause unexpected delays in
store relocations, renovations or expansions; reliance on foreign
sources of production; and other risks outlined in the Company's
filings with the Securities and Exchange
Commission ("SEC"), including but not limited to the Company's
Annual Report on Form 10-K for the fiscal year ended February
1, 2014, and subsequent periodic reports filed with the SEC.
Historical results achieved are not necessarily indicative of
future prospects of the Company. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date hereof. The Company assumes no obligation to
update or revise any such forward-looking statements to reflect
events or circumstances that occur after such statements are made.
Nonetheless, the Company reserves the right to make such updates
from time to time by press release, periodic report or other method
of public disclosure without the need for specific reference to
this press release. No such update shall be deemed to indicate that
other statements not addressed by such update remain correct or
create an obligation to provide any other updates.
About non-GAAP Financial Measures
The accompanying press release dated July 31, 2014, contains a
non-GAAP financial measure. This non-GAAP financial measure
includes a forward-looking estimate of the Company's non-GAAP loss
from continuing operations per diluted share for the second quarter
of fiscal 2014. Non-GAAP financial measures should not be
considered as a substitute for, or superior to, measures of
financial performance prepared in accordance with GAAP. Non-GAAP
financial measures do not reflect a comprehensive system of
accounting, differ from GAAP measures with the same names and may
differ from non-GAAP financial measures with the same or similar
names that are used by other companies. The Company computes
non-GAAP financial measures using the same consistent method from
quarter to quarter and year to year. The Company may consider
whether other significant items that arise in the future should be
excluded from the non-GAAP financial measure. The Company
believes that this non-GAAP financial measure provides meaningful
supplemental information regarding the Company's operating results
primarily because it exclude amounts that are not considered part
of ongoing operating results when planning and forecasting and when
assessing the performance of the organization, individual operating
segments or its senior management. In addition, the Company
believes that non-GAAP financial information is used by analysts
and others in the investment community to analyze the Company's
historical results and in providing estimates of future performance
and that failure to report non-GAAP measures, could result in
confusion among analysts and others and create a misplaced
perception that the Company's results have underperformed or
exceeded expectations.
CONTACT: Michael W. Kaplan
Chief Financial Officer
(714) 414-4003