NEW YORK — Pacific Sunwear of California shined brightly Monday.
The teen destination store, releasing figures after the markets closed, reported a 54.1 percent gain in its third-quarter profits, driven by double-digit sales gains at both its retail concepts.
For the three months ended Nov. 1, the Anaheim, Calif.-based retailer said income increased to $24.5 million, or 31 cents a diluted share. That compares with income of $15.9 million, or 21 cents, in the like period last year, and to company and Wall Street estimates of 29 cents.
Sales for the three months surged 23.2 percent to $281.3 million from $228.2 million, while same-store sales rose 13.8 percent for the quarter, consisting of a 13.2 percent gain at its PacSun stores and a 19.9 percent boost at Demo. Inventories rose 13 percent.
“We have made great strides in all product areas,” Greg Weaver, chairman and chief executive, said on an afternoon conference call, noting footwear comps grew more than 20 percent and accessories increased 20 percent. Young men’s was up in the mid-single digits and girls’ managed a low-double-digit increase.
The girls’ business has been a key driver of PacSun’s mounting success, as the firm has grown the business to capture females’ more frequent mall visits and the increased likelihood they would shop for outfits and accessorize them. Weaver said the two genders’ sales activity is running about 50/50 and that he expects girls’ to surpass men’s.
Timothy Harmon, president and chief merchandising officer, said on a company conference call, “The success at back-to-school is going to be even a stronger piece of business going forward.” Fleece was critical, and the firm has added new brands and expanded some of last year’s skate brands into the girls’ unit.
Weaver said he is comfortable with the fourth-quarter consensus earnings estimate of 37 cents, which is based on the firm’s assumption of a 5 to 6 percent comp increase in the quarter.
Weaver said he expects to open 14 new stores in the fourth quarter, 13 of which will be PacSun stores, ending the year with 877 stores. In 2004, he said he is looking to add 100 new stores, 65 PacSun, 5 outlet and 30 Demo doors, ending the year with 977 units. It currently operates 863 doors, including 664 PacSun stores, 78 PacSun outlet stores and 121 Demo stores.For the nine months, income rocketed 73.3 percent to $45.9 million, or 59 cents, versus income of $26.5 million, or 35 cents, in the comparable period last year. Sales soared 22.9 percent to $714 million from $580.8 million as comps rose 13.7 percent, with PacSun up 12.4 percent and Demo up 25.5 percent.
@pantone announced their Color of the Year 2018: Ultra Violet. Nearly 20 months after the musician Prince’s death, fashion is having a purple moment. Varying shades of purple appeared on spring or fall runways, from @christopherkane to @calvinklein. @gucci’s Alessandro Michele bathed his fall runway in ultra violet-colored light at one point. Pantone 18-3838 is meant to “push the boundaries of what inspires us to look upward and outward to the future.” #wwdnews #wwdfashion (📷: @kukukuba)
@badgalriri’s @fentybeauty launch in September was a massive success on social media, powering $72.9 million of earned media value, according to Tribe Dynamics. The brand’s foundation offering sparked conversations about diversity in beauty, launching the growth of emerging influencers and propelling the brand’s support on social media. Today, #fentybeauty won Launch of the Year at the WWD #BeautyIncAwards. (📷: Chema Moya/EPE-EFE)
@marianna_hewitt has become one of the most influential content creators in the beauty space, with almost 800,000 Instagram followers and a newly launched skin care line called @SummerFridays. Today, she was awarded Influencer of the Year at the WWD #BeautyIncAwards. (📸: @sophiachabbott )
As shopping behaviors evolve, the retail experience must follow. Head over to retail experts @colliersinternational’s Knowledge Leader series to read more about the shift in our shopping era. #colliersretail #lovecolliers
@prada opened a pop-up club, called Prada Double Club, in collaboration with German artist Cartsen Höller at @artbasel Miami. Last night, guests – including @youngparis, @ritaora and even Miuccia Prada herself – gathered in a former ice factory where the pop-up is housed for a performance from @wyclefjean. Go to WWD.com for full coverage on all the exhibits, parties and more at #ArtBaselMiami. #wwdeye (📷: @lexieblacklock)
@louboutinworld and @disney are making magic once again, creating a set of shoe designs for the release of “Star Wars: The Last Jedi.” Louboutin designed a pair of shoes for each of the film’s four female leads: Rey (@daisyridrey), Vice Admiral Amilyn Holdo (@lauradern), Captain Phasma (Gwendoline Christie) and Rose Tico (@kellymarietran). The shoes will debut on Saturday at the L.A. premiere of the latest episode. #wwdfashion
Today at the #BeautyIncAwards 2017, WWD will be joined by beauty leaders from around the world as we honor this year's most innovative people, products, brands and places. Follow along here and on Twitter for live coverage from the exclusive event. #wwdsummits (📷: @elizaflorendo)
Exclusive: Beauty superinfluencer @marianna_hewitt is launching her first-ever skin care brand with her business partner @laurengores. Their new line Summer Fridays, which will be sold exclusively at summerfridays.com starting in January, is launching with just one product – a hydrating cream Jet Lag Mask. “We wanted to focus on one product that was amazing,” said Hewitt. Read the full interview on WWD.com. Link in bio. #wwdbeauty #wwdnews
Michelin star-rated chef PJ Calapa marks his first solo endeavor with today’s opening of @scampinyc –– the new Southern Italian restaurant located in Manhattans’ Flatiron District. The upscale yet welcoming environment matches the menu, which includes two types of scampi: traditional Italian langoustines in butter and the Americanized version with shrimp over pasta 🍤 - pictured here. #wwdeye (📷: George Chinsee)