Investor Relations

ANAHEIM, Calif., Jan. 8, 2009 (GLOBE NEWSWIRE) -- Pacific Sunwear of California, Inc. (Nasdaq:PSUN) today reported that total PacSun sales for the five weeks of fiscal December ended January 3, 2009 were $196.0 million, a decrease of nine percent from total PacSun sales of $214.4 million during the same period last year. PacSun same-store sales decreased 10 percent during the same period.

Total PacSun sales for the first nine weeks of the fiscal fourth quarter of 2008 were $297.0 million, a decrease of eight percent from total PacSun sales of $324.6 million during the same period last year. PacSun same-store sales decreased ten percent during the same period.

Total PacSun sales for the first 48 weeks of fiscal 2008 were $1.20 billion, a decrease of four percent versus total PacSun sales of $1.25 billion during the same period last year. PacSun same-store sales decreased five percent during the same period.

During December, the Company significantly reduced its inventories, although with a very high rate of markdowns. The Company ended fiscal December with inventories down 12 percent per square foot year-over-year and now expects to end fiscal 2008 with inventories down approximately 20 percent per square foot year-over-year. This compares to its previous expectation of inventories down at least high-single digits at the end of fiscal 2008. Due in part to the increased promotions and anticipated further markdown reserves, and assuming a same-store sales decrease in the mid-teens range for the month of January, the Company now expects to report a fiscal 2008 fourth quarter net loss of $0.38 to $0.43 per diluted share, including an estimated gain of approximately $0.10 per diluted share from the previously-announced sale of the Company's Anaheim distribution center. Approximately $0.19 of the fiscal fourth quarter loss is attributable to markdown reserves. The Company also now anticipates ending fiscal 2008 with cash balances of between $15-20 million and no direct borrowings under its $150 million credit facility.

For more detailed information on December sales results, please call (714) 414-4210 to listen to a recorded commentary.

About Pacific Sunwear of California, Inc.

Pacific Sunwear is a leading lifestyle specialty retailer rooted in the youth culture and fashion vibe of Southern California. The Company sells casual apparel with a limited selection of accessories and footwear designed to meet the needs of teens and young adults. As of January 3, 2009, the Company operated 811 PacSun stores and 126 PacSun Outlet stores for a total of 937 stores in 50 states and Puerto Rico. PacSun's website address is www.pacsun.com.

The Pacific Sunwear of California logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=2087

Pacific Sunwear Safe Harbor

This press release contains "forward-looking statements" including, without limitation, statements regarding the Company's inventory levels, earnings projections, cash balances and direct borrowings for the fourth quarter of fiscal 2008. 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. In particular, current unfavorable economic conditions and reduced consumer spending make it very difficult to forecast sales, and therefore our assumption of same-store sales during the fourth quarter of fiscal 2008 may be wrong, with actual same-store sales being lower than we have assumed for purposes of our earnings projection. Other uncertainties that could adversely affect our business and results include, among others, the following factors: additional adverse changes in economic conditions generally; additional adverse changes in consumer spending; changes in consumer demands and preferences; higher than anticipated markdowns and/or higher than estimated selling, general and administrative costs; competition from other retailers and uncertainties generally associated with apparel retailing; merchandising/fashion sensitivity; 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, could cause unexpected delays in new store openings, relocations, renovations or expansions; reliance on foreign sources of production; and other risks outlined in the company's SEC filings, including but not limited to the Annual Report on Form 10-K for the year ended February 2, 2008 and subsequent periodic reports filed with the Securities and Exchange Commission. 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.