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Market Update : 
Pacific Sunwear Q1 Earnings Call Transcript
Author: 123jump.com Staff
123jump.com
Last Update: 12:20 PM ET May 28 2009


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We would also expect occupancy expenses to de-leverage by approximately 350 to 400 basis points. We currently expect SG&A dollars to be $84 to $85 million and our effective income tax rate to be 43% for the quarter.

Operator, we will now take questions.

Question-and-Answer Session

Operator

At this time, I would like to go ahead and remind our participants in order to ask a question, please press “*” then the number “1” on your telephone keypad. Our first question comes from the line of Christine Chen with Needham & Company.

Christine Chen – Needham & Company

Sally, I was wondering as you look ahead at the back-to-school season and compare it to last year what do you think some of the merchandise opportunities are?

Sally Frame Kasaks

We are looking at a number of things. Certainly as we have called out denim has been a strong part of our business and I think most of us in the teen space shall we say, or in the youth market, are seeing this is happening. So I think you can count on our denim assortments continuing to increase. I think you are also going to see both in young men and juniors broader assortments than what we had last year and we have been testing and trying some new things in product categories. So, you will see some newness within our stores in both genders.

Certainly in the young men’s business, printable tees continues to grow and we were grossly underpenetrated on that last year. So we do see some opportunities essentially in denim and tops which is the teen uniform. But on top of that we have seen some good fashion direction that we can build on.

Christine Chen – Needham & Company

And as far as color palette do you see any changes there? Are we moving away from color into a more darker palette or do you think color is still going to be very important?

Sally Frame Kasaks

Color will be important but it is going to be interpreted in a different way and regardless of whether it is denim or within plaids there is going to be color within the assortments because it does tend to lift but there will certainly be a cast to it that will be more appropriate for late summer and fall transitional colors.

Christine Chen – Needham & Company

Okay, great. Thank you and good luck.

Sally Frame Kasaks

Thank you very much.

Operator

Our next question comes from the line of Liz Dunn with Thomas Weisel Company.


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