Mall Brands: Pacific Sunwear
By Scott Reeves Jun 19, 2009 8:50 am
Surf retailer struggles to keep its head above water.
Today, it looks more like Governor Arnold Schwarzenengger’s middle-aged, post-steroid droopiness than a piece of the California dream. America's obsession with the Golden State never really goes away; it just ebbs and flows. Unfortunately for Pacific Sunwear, which is seeing declining sales, this is a period of ebb. And the recession doesn't help.
The story of Pacific Sunwear is one of constant reinvention -- just not necessarily in a good way. The Anaheim, California-based retailer has jumped on every fad, while its competition has done a better job of sticking to its guns.
After surfing came skateboaring, and the company followed the crowd by offering clothes and accessories with a slightly "edgier" look -- or at least edgy as defined by its young customers and their current passion.
Then, when the hip-hop craze filtered through suburbia, Pacific Sunwear again tried to cash in. The effort flopped. Last year, the company closed its remaining 154 stores pitched to urban and hip-hop kids after shuttering 74 underperforming stores in 2007.
No positions in stocks mentioned.
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