Pacific Sunwear Sees Q4 EPS of $(0.07) to $(0.18)

Pacific Sunwear of California, Inc. PSUN guidance range for the fourth quarter of fiscal 2010 contemplates a GAAP net loss per share of $(0.10) to $(0.29) for the fourth quarter of fiscal 2010 which reflects the continuing impact of maintaining a valuation allowance against deferred tax assets and a very low effective tax rate.

On a non-GAAP basis, using a normalized income tax rate of approximately 37%, the Company's guidance range translates to a net loss of $(0.07) to $(0.18) per share for the fourth quarter of fiscal 2010. The forecasted fourth quarter GAAP earnings range is based on the following significant assumptions:

• Same-store sales in the range of flat to -5%;
• Gross margin rate improvement of 100 to 400 basis points versus last year's 22.6%;
• SG&A expenses in the range of $82 million to $84 million;
• Income tax expense is expected to be minimal for the quarter because the Company no longer records income tax benefits against its operating losses.