Pacific Sunwear of California Q3 2007 Earnings Call Transcript

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2007-11-20 18:55:00.0

Tags: Pacific Sunwear of California Inc.

Question-and-Answer Session

Operator

(Operator Instructions). Your first question will come from Jennifer Black with Jennifer Black Associates.

Jennifer Black - Jennifer Black Associates

Good afternoon, and Sally, congratulations to you and your whole team, the stores look amazing.

Sally Kasaks

Thank you very much. And the team has done a tremendous job, I'm very proud of them.

Jennifer Black - Jennifer Black Associates

I have a question, just a follow-up on something that you said about the tops-to-bottoms ratio. And where they are now and what kind of opportunity you think you really have, both with guys and with girls, and I know, you were focused on the girls?

Sally Kasaks

We are both having a hard time here with our throat, this is some bug out here, I have no idea what it is. We continue to see, particularly in juniors, we see an opportunity in tops. But we feel pretty confident that there is a good balance in the guys’ business, particularly since our branded T-shirt business has started to really gain traction again. I think well, you do see some opportunity in the juniors. Typically you look for 2 2.5 3:1 ratio. The success of denim though has probably kept the ratio a little closer than you might typically see. But we still see a lot of opportunities on the upside in tops.

Jennifer Black - Jennifer Black Associates

So would it be fair to say that if you did get to three tops per bottom and your denim business is going great, that would be a drastic improvement?

Sally Kasaks

I think, it will be a continuing improvement because -- continuing improvement and I think that will continue to add to store productivity and just continue to help us drive our comp sales.

Jennifer Black - Jennifer Black Associates

Okay.

Sally Kasaks

I think the other part we need to include too, is we're really trying to continue to expand on the fashion top business totally in the junior rank, because it's really an important business driver.

Jennifer Black - Jennifer Black Associates

Okay, great. Good luck.

Sally Kasaks

Thank you very much, Jennifer.

Operator

Your next question will come from Jeff Klinefelter with Piper Jaffray.

Jeff Klinefelter - Piper Jaffray

Hi, yes. Just a couple of questions for you, as you consider sort of your brand strategy going forward, across both juniors and young men's. What are your thoughts for the ultimate balance of private label in those two categories? And then in terms of the growth of the business, how long do you think you need to wait ultimately to develop a new growth concept, granted it's a little soon given that you are getting out of these other two businesses, but have you thought about that in terms of your kind of three year to five year plan? And then just lastly, initial thoughts about '08, can we assume that your core PacSun business, should we look at a similar sort of growth rate into '08, on a year-over-year basis, as we're looking at in that Q4 guidance?

 

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