PacSun interim boss becomes CEO
Pacific Sunwear of California Inc., an Orange County surf wear retailer that has been navigating choppy waters, promoted its interim boss to chief executive Wednesday.
An industry veteran, Sally Frame Kasaks takes over PacSun the same week it posted a loss of $5.1 million in its latest quarter, mostly because of weak sales in April. Only twice since February 2006 have monthly sales risen at PacSun stores open a year or more.
Kasaks, 62, was previously chief executive of Ann Taylor Stores Inc., Abercrombie & Fitch Co. and Talbots Inc. She has served as interim chief executive since October, when Seth Johnson stepped down.
Analysts were pleased with the appointment, but investors didn’t pay much attention. The Anaheim retailer’s shares rose 14 cents to $19.74.
“She’s an unbelievably talented merchant,” who is good at presenting merchandise and “empowering employees,” said Jennifer Black of Jennifer Black & Associates in Portland, Ore.
Mitch Kummetz, an analyst with Robert W. Baird & Co. in Milwaukee, agreed that Kasaks’ appointment was “a good thing” for the parent of the PacSun, PacSun Outlet, d.e.m.o. and One Thousand Steps chains.
“She’s initiated some strategies I think are right for the company,” he said, including using more authentic surf graphics on PacSun’s website and in magazines.
Kasaks, 62, said in an interview that she would continue to push for improvements that already were underway, including efforts launched when she took the interim chief title.
“I wasn’t meant to be a caretaker. It was like, let’s get moving with a few things that are pretty obvious,” she said. “It worked out, but not quite as I planned.”
Kasaks is trying to find ways to attract more teenage girls to PacSun stores, which are now adding more fashionable clothes, including dresses, and are backing away from tomboy offerings.
But the retailer still has sizable battles ahead as it duels with other chains that have been swiping market share.
“Its two biggest competitors are Zumiez and Hollister, and both of those companies continue to open more and more stores,” Kummetz said. Also, the surf and skateboard business has weakened in the last couple of years, he said.
Kasaks has been on PacSun’s board since 1997. Her appointment as chairman and chief executive marked the first time a woman has held those posts at the company.
When the announcement was made during PacSun’s annual shareholders meeting Wednesday, employees gave Kasaks a standing ovation, a spokesman said. Her new employment agreement extends her tenure through 2010.
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