Pacific Sunwear of California, Inc (PSUN) recently released its Form 10-K, and there’s a ton of interesting information about action sports’ largest mall-based retailer. For instance, Fox was the best-selling brand for the mega chain in 2010, accounting for 10% of net sales.

Here’s a quick rundown of some of the most interesting facts and figures. To download the full Form 10-K, CLICK HERE.


The following table represents PSUN’s merchandise assortment as a percentage of net sales for the most recent three fiscal years:


From Form 10-K:

Our sales per square foot has fallen from $350 in fiscal 2007 to $258 in fiscal 2010, an aggregate decline of 26%. A significant factor in the decline in our sales productivity, particularly in fiscal 2010, was the performance of denim. Denim represented 12% of net sales in fiscal 2007 and then grew significantly over the next two years to peak at 22% of net sales in fiscal 2009, driven by our proprietary Bullhead® denim and our foundational “skinny” fit. During fiscal 2010, denim became a very price-competitive business with very little newness or uniqueness in the marketplace in terms of fit or trend. As a result, same-store sales of denim, which represented 18% of net sales for fiscal 2010, fell by over 20%. Until a new significant denim trend or other meaningful alternative to denim is developed, sales of denim are likely to continue to be challenging in the near future. Another significant factor in our declining sales productivity over the past three years was attributable to the combination of accessories and footwear (“non-apparel”). Prior to fiscal 2007, non-apparel accounted for more than 30% of net sales versus only 12% in fiscal 2009 resulting from a de-emphasis on non-apparel categories. In retrospect, we believe we lost significant sales opportunities as a result of our previous decisions to de-emphasize non-apparel categories during fiscal 2008 and 2009. We began working toward reclaiming non-apparel sales during fiscal 2010, ending the year with footwear reintroduced to approximately 450 stores; however, non-apparel still only represented 13% of net sales for the year.

Brands Breakdown

Heritage Brands. We offer a wide selection of well-known action-sports inspired heritage brands, such as Fox Racing, Billabong, Element, DC Shoes, Roxy, Quiksilver, Hurley, O’Neill, Vans and Volcom, among others. In addition, we continually cultivate relationships to add and support up-and-coming brands, even if they are not of sufficient size to deliver to our stores on a nationwide basis. During fiscal 2010, Fox Racing accounted for 10% of our net sales. No other branded vendor accounted for more than 7% of net sales in fiscal 2010. During fiscal 2009 no vendor accounted for more than 10% of net sales. In fiscal 2008, Billabong (which then incorporated both the Billabong and Element brands) accounted for 11% of net sales and Quiksilver (which incorporates the DC Shoes, Roxy and Quiksilver brands) accounted for 10% of net sales. Branded merchandise accounted for approximately 54%, 52% and 62% of net sales in fiscal 2010, 2009 and 2008, respectively.

Proprietary Brands. We supplement our name-brand offerings with our proprietary brands, including Bullhead®, Kirra®, On the Byas®, Black Poppy® and Nollie®. Proprietary brands provide us with an opportunity to broaden our customer base by offering merchandise of comparable quality to brand name merchandise, capitalize on emerging fashion trends when branded merchandise is not available in sufficient quantities, and exercise a greater degree of control over the flow of our merchandise. Our own product design group, in collaboration with our buying staff, designs our proprietary brand merchandise. Our sourcing organization oversees the manufacture and delivery of our proprietary brand merchandise, with manufacturing sourced both domestically and internationally. Our proprietary brand merchandise accounted for approximately 46%, 48%, and 38% of net sales in fiscal 2010, 2009, and 2008, respectively.


Our Internet sales represented approximately 5% of our sales for each of fiscal 2010 and fiscal 2009. We sell a combination of the same selection of merchandise carried in our stores along with online exclusives at We also advertise our website as a shopping destination on certain Internet portals and search engines and market our website in our stores. Our Internet strategy benefits from the nationwide retail presence of our stores, brand recognition of PacSun, an Internet-savvy customer base, and the availability of our key brands.

To Download The Form 10-K In Its Entirety, CLICK HERE.