Call started out good. Beats on many fronts, including gross margin, net loss, inventory, cash on hand with no borrowing debt. After the Q2 results, the call was not so pretty. August has started off slow, company is guiding lower, they were blind sided by other companies pricing to kick off back to school. Never did they mention e commerce really, except that is was up 16% year over year. Never did they mention that they had a dream summer weather wise, yet they did complain about it in the previous quarter. They never mentioned facebook, twitter, youtube, MTV awards sponsorship this month, their mobile app. Nothing on these fronts. They talked about their Ipad in about 1/3 of stores currently. They basically said they missed the boat in back to school, yet on Q1 call, they said they were anxiously awaiting back to school and were prepared for a week or two earlier launch. CEO says they are still learning. So, they had some good beats in Q2, but this guidance is what counts. It's unfortunate. Dress Irresponsibly was very rarely used in the call. I thought the impact would have been bigger. They lost the denim game big time, it seems. They cannot sell jeans for $ 25 like others. I expected better. The call wasn't disastrous, but it wasn't good either. I fully expect 2012 to be good for psun, that just means holding and being patient for another 15 months.
As a good poker player and business man this CEO is holding his cards close to his vest. He will not volunteer information about this business and in many cases he just refuses to disclose what they have up their sleeves. He is very non boastful. Which is good because there are a number of things he could proudly rave on about. He is and Pacsun is finding its way under the radar. For example, no press releases between quarter reports. We don't need them on cnbc and touted by the analysts until they are way ahead of the game. We do not need the stock upgraded for all the competitors to see. We don't need to give awesome guidance when we are playing cat and mouse with landlords over leases,especially when all the talk is about a double dip. We don't need him talking about their ads and internet initiatives. We can see that for ourselves by following Facebook,Twitter, and their apps. They are still learning but who stops learning? They are making major progress. It takes time. Eventually when it all comes together the stock will appreciate so fast it will make up for the time the stock went down or sideways.