PacSun is exploring strategic alternatives for the Demo storesand announced last month that it will close its One Thousand Stepsdivision. In the company's conference call Tuesday for the thirdquarter ended Nov. 3, CEO Sally Frame Kasaks commented that she was"very pleased by the progress shown by our core PacSun businessduring the third quarter." She said that the company "completed astrong back-to-school season, driven by continued progress inimproving our juniors' business and steady performance from ourguys' business," citing the positive comp store sales results.

The company's comp store sales increased by 5% during thequarter, even though total sales dipped to $373.1 million from lastyear's $375.4 million in the third quarter. The 5% same store salesincrease during the latest quarter, by concept, included a 7.7%increase for PacSun stores and an 18% decreased for Demostores.

Pacific Sun, which operates its 1,120 stores under the PacSun,Demo and One Thousand Steps concepts, has been conducting a programto "refresh" its stores to boost sales and meet one of the goalsestablished by Kasaks: improving customers' in-store shoppingexperience. "Our store refreshing program has played a key role inthis effort," Kasaks said. She noted that the company for thisfiscal year will complete 50 refreshes, and that it expects toincrease its pace of store refreshings to 75 locations per yeargoing forward.