Pacific Sunwear Blames Sales Shortage on Shorts

Pacific Sunwear of California Inc. said a recent downturn in sales of young men’s shorts is behind the recent weakness in its retail business.

The Anaheim company wouldn’t comment on current comparable sales figures or earnings estimates for the fiscal second quarter until it sees June sales figures, managers told an investors conference Tuesday in Minneapolis.

Sales at stores open at least a year were up 5.3% through the first quarter and 7.8% higher for all of 1999.

The apparel retailing industry has been nervous in recent weeks about the strength of sales through the spring and summer period and PacSun recently issued a cautionary note about its outlook. The current First Call/Thomson Financial second-quarter consensus estimate is 27 cents a share, down 2 cents from earlier estimates.

“Clearly, there’s a fear out there,” Chief Executive Greg Weaver said at the U.S. Bancorp Piper Jaffray conference.

He said sales of shorts dropped suddenly in recent weeks. “We could not sell shorts,” he said, indicating the company had a $2 million shortfall in that line.

Weaver said sales of the women’s junior apparel business remain continue to grow by double digits.

The company’s stock, which has been battered this year, closed Tuesday at $13.44, off 63 cents a share, in Nasdaq trading. The shares have lost nearly 58% of their value this year.