Pacific Sunwear Renews Deal with Hurley in Wake of Decline
Pacific Sunwear of California Inc., a specialty retailer of casual apparel, accessories and footwear for teens and young adults, announced this week that it was going to renew its relationship with surfwear manufacturer Hurley International.
Hurley is a Costa Mesa, Calif.-based company that produces alternative surf apparel. “It’s a premier brand in surf and skate,” said PacSun chairman and CEO Greg Weaver. “It’s one of the most-requested items in all of our stores and up until now we didn’t carry it.”
When PacSun originally launched it carried a limited supply of Hurley clothing, Weaver said. But the company, which was founded by former Billabong executive Bob Hurley, was not ready to distribute on that level, Weaver added. Weaver said T-shirts with Hurley logos will arrive in stores within three weeks, and a full sportswear line for girls and boys that includes hooded fleece, wovens, pants and knit shirts, as well as accessories, will be available by July.
Retail prices will range from $18 to $20 for T-shirts and $48 to $60 for pants.
PacSun opened its doors in 1981 at Santa Monica Place. By 1989, the company was catering to East Coast surf and skate crowds with brands such as Gypsys & Thieves, Vision, Island Force, Diversion and Shotts. The Anaheim, Calif.-based company went public in 1993.
The company’s decision to pick up Hurley couldn’t have come at a better time. The company earned $1 million for the quarter, including a $2.5 million one-time charge related to the disposal of equipment from the company’s distribution center. Minus the charge, the company earned $3.5 million, a 40 percent decrease from last year.
Revenue at PacSun increased 22.3 percent from $112.6 million last year to $137.7 million. However, same-store sales were down 3.3 percent for the quarter.
PacSun currently operates 587 stores and 44 outlet stores in 48 states and Puerto Rico.
