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Nationwide Expansion Suits Pacific Sunwear

March 01, 2000|Leslie Earnest

Pacific Sunwear of California Inc., the mall-based retailer of clothes for teens and young adults, said Tuesday its fourth-quarter earnings jumped 56% as the company benefited from its nationwide expansion.

The Anaheim company, which sells surfwear and skate shoes made by a number of Orange County companies, said profits rose to $11.7 million, or 36 cents a share in the quarter ended Jan. 30, from $7.5 million, or 24 cents a share, in the comparable period the year before. Analysts had predicted earnings of 34 cents a share.

Sales rose 38% to $130.9 million. Sales at stores open a year or more, a key industry indicator, rose 9.6% for the three-month period.

For the year, net income rose 50% to $35.3 million, or $1.10 per share, compared with $23.5 million, or 73 cents a share in the previous fiscal year.

Pacific Sunwear's expansion into new areas helped generate the rosy earnings, Chief Executive Greg Weaver said. The company also recently launched a stepped-up advertising campaign, including its first television ads.

The company disclosed its financial results after U.S. markets closed. The company's stock closed Tuesday at $25.44, up $1.28, in Nasdaq trading.

Pacific Sunwear operates 457 stores in 47 states. In addition to its signature stores, the company also runs d.e.m.o. stores, which target ethnic, urban customers.

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