On Pacific Sunwear of California's (PSUN) recent conference call, Controller Mike Henry lowered his company's prospects for the coming quarter. Henry didn't say they foresee a slowdown in actual sales, rather he points to a lot of fear in the marketplace. He seemed to prefer to lower expectations rather than raise them.
Paul Lejuez - Credit Suisse
...You had a 7.7% comp in the Pac business in the third quarter. Why the slowdown for the fourth quarter, is it simply more difficult comparisons or is there something going on November to date that you can share?
Mike Henry, VP and Controller Pacific Sunwear of California
No, first we don't make comments mid-month about business again. But as Sally mentioned earlier, there is some caution out there, you see a lot of things coming out where people have concerns about the fourth quarter. We are trying to be cautious. We do have confidence on how our PacSun business is performing. We believe our inventories are trending right. We believe we are positioned well as we go in to fourth quarter, but we just don't want to get too far ahead of ourselves. We had solid back-to-school third quarter. We are happy with it. We are confident going into the fourth quarter, there is just a lot of noise out there and we just don't want to get too far ahead of ourselves.
PSUN 1-yr. chart: