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Earnings Analysis: 
Pacific Sunwear Q3 Earnings Call Transcript
Author: 123jump.com Staff
123jump.com
Last Update: 6:12 PM ET December 04 2008


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Sally Frame Kasaks

Oh yeah, I’m excited. I mean, if you could have seen me last week at the floor set, you would have thought I just -- I don’t know. I won’t get too carried away. But we’ve got to keep going because that’s what is going to turn on the customers -- newness, freshness, we just have to figure out what the right quantities are and to keep our stores and our customers and our people excited. That’s all we can do right now.

Marni Shapiro - The Retail Tracker

Right. And Mike, on the expense side?

Sally Frame Kasaks

We can do that, too.

Michael L. Henry

On the store payroll, you know, as I mentioned earlier, we’ve worked really closely with our field team to make sure that not just getting the number down but also looking at appropriate coverage at appropriate levels and that’s where I will leave it at that in terms of what we are looking at to contain that number as much as possible going forward.

Marni Shapiro - The Retail Tracker

But have you made changes in the organization over this period that you think you will be able to take through even when things are good, changes that really make a lot of sense for the organization that you’ve come to this conclusion because you were under pressure to make these changes?

Sally Frame Kasaks

Sometimes I think pressure makes you take a harder look and I think that’s all we can say because we are looking at every part of the -- we need to understand better because this could also be a trend line that is going on for a couple of years, not necessarily the sales but I don’t know what’s going to be a catalyst, all things aside and I think we are looking and saying gee, what does a 21st century company do in our space knowing we’ve got to build customer relations, we’ve got a lot to do but what is the right structure and I think we are learning as we go along and through our learnings, we are implementing and executing and with a little longer term view. We cannot just be short-term on these decisions though and I think that’s the question. Anybody can go out and do a slash-and-burn but we believe we are going to come out on the other side because we’ve taken so many -- we’ve done so many dramatic things over the past 18 months. Now we are looking at what is the right size organization and structure to make sure we are strong, even if this sort of goes on a bit longer than we would like it to.

Marni Shapiro - The Retail Tracker

Great. That’s what I wanted to hear. Thanks, guys. Good luck with the holiday season.

Sally Frame Kasaks

Thank you.

Michael L. Henry

Thank you.

Operator

Your next question comes from Linda Tsai of MKM Partners.
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