{"id":2539,"date":"2008-11-18T14:35:13","date_gmt":"2008-11-18T22:35:13","guid":{"rendered":"http:\/\/www.boardistan.com\/?p=2539"},"modified":"2008-11-20T09:32:06","modified_gmt":"2008-11-20T17:32:06","slug":"pacsun-q3-conference-call-notes","status":"publish","type":"post","link":"http:\/\/www.boardistan.com\/?p=2539","title":{"rendered":"PacSun Q3 Conference Call Notes"},"content":{"rendered":"<p>Today at 1:30 PM PST <strong>Pacific Sunwear&#8217;s<\/strong> CEO <strong>Sally Frame Kasaks<\/strong> and CFO <strong>Michael Henry<\/strong> spent a little over 40 minutes answering analyst&#8217;s questions. It sounded a lot like good news for people who like bad news. Here are some highlights from the call:<\/p>\n<ul>\n<li>Juniors sales up 16 percent in the quarter driven primarily by their house brand Bullhead denim and tops.<\/li>\n<li>Young men&#8217;s sales saw a slight decline in denim and tops<\/li>\n<li>Branded goods represent 71 percent of total sales.<\/li>\n<li>The company continues to review fashion brands by their collections and no one is a done deal. &#8220;I&#8217;m not sure I want to refer to any of our brands as tried and true,&#8221; Kasaks said.<\/li>\n<li>Accessory sales were down 28 percent, but they hope to better manage the category to about 15 percent of sales rolling forward<\/li>\n<li>Inventory are high and the company will be going very promotional in Q4. Sally Kasaks said the company would &#8220;aggressively clear inventory while holiday traffic is available to us.. . . We may have bought too much this year, and I will take full responsiblity for that. On the other hand I think we have done a good job managing the new brands.&#8221;<\/li>\n<li>Approximately 100 of the 940 stores are not profitable, 24 are cashflow negative<\/li>\n<li>PacSun has said all along that they would be closing 30-40 stores a year as part of normal business. They see no reason to close a larger number of stores this year, mostly because getting out of leases is costly and could take up to two years.<\/li>\n<li>Footwear down to 4 percent of the business; will be 3 percent by the end of the year<\/li>\n<li>Capital expenditures for 2009 will be cut by over 50 percent to $30 million total.<\/li>\n<li>The e-commerce business growth is outpacing the retail store environment so &#8220;we will continue to fund that.&#8221;<\/li>\n<li>Michael Henry says they are planning for the market to remain tough for the foreseeable future.<\/li>\n<\/ul>\n<p>Guess we&#8217;ll know tomorrow how the market reacts in the stocks that are listed in the upper right hand corner of the site. It doesn&#8217;t sound good. To read a transcript of the entire call <strong><a href=\"http:\/\/seekingalpha.com\/article\/106703-pacific-sunwear-f3q08-qtr-end-11-1-08-earnings-call-transcript\" target=\"_blank\">click here<\/a><\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Today at 1:30 PM PST Pacific Sunwear&#8217;s CEO Sally Frame Kasaks and CFO Michael Henry spent a little over 40 minutes answering analyst&#8217;s questions. It sounded a lot like good news for people who like bad news. Here are some highlights from the call: Juniors sales up 16 percent in the quarter driven primarily by [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[10,16,12],"tags":[],"_links":{"self":[{"href":"http:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/posts\/2539"}],"collection":[{"href":"http:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/www.boardistan.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2539"}],"version-history":[{"count":9,"href":"http:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/posts\/2539\/revisions"}],"predecessor-version":[{"id":2619,"href":"http:\/\/www.boardistan.com\/index.php?rest_route=\/wp\/v2\/posts\/2539\/revisions\/2619"}],"wp:attachment":[{"href":"http:\/\/www.boardistan.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2539"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.boardistan.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2539"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.boardistan.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2539"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}