Pacific Sunwear Shines

Pacific Sunwear of California Inc. said Monday that its first-quarter profit almost doubled on strong sales coupled with store openings.

At the same time, the Anaheim-based teen clothing chain raised its full-year earnings forecast above analysts’ estimates and authorized the repurchase of up to $25 million in stock.

In the fiscal first quarter ended May 1, PacSun earned $15 million, or 19 cents a share, on revenue of $245.1 million, compared with net income of $8 million, or 10 cents, on revenue of $198.3 million a year earlier. Last year’s share price reflects a 3-for-2 stock split.

The latest results came in 2 cents ahead of Wall Street expectations.

Pacific Sunwear operates two chains. Its 689 PacSun and 81 PacSun outlet stores sell clothing based on surfing and skating fashion. Its 137 d.e.m.o. stores sell hip-hop clothing and accessories

Same-store sales, or sales at stores open more than one year, rose 13%, boosted by strong performance in girls’ apparel, accessories and footwear. Same-store sales are an important measurement of a retailer’s financial health.

In the first quarter, Pacific Sunwear opened 30 new stores, bringing the count up to 907. The company plans to open 110 new stores for the year and move 35 stores to larger sites.

Pacific Sunwear raised its full fiscal year earnings forecast to $1.31 a share from $1.22 a share issued in March. Analysts are expecting earnings of $1.26 a share, according to Thomson First Call. In 2003, the company earned $1.02 a share.

The new forecast is based on first-quarter results and a $50-million stock buyback, which reduced share count by nearly 3%.

The company said it bought back about 2.2 million common shares at an average price of $22.48 in the first quarter, and is authorized to repurchase up to an additional $25 million of shares. The company currently has about 78.5 million shares outstanding.

In after-hours trading, Pacific Sunwear shares traded at $21.23, up from its close of $20.49 on Nasdaq, where it rose 4 cents during Monday’s regular session.