Pacific Sunwear of California (PSUN) might one day see brighter days, thanks to the appointment, announced today, of a new CEO. But don't expect an a brilliant, cloud-parting revival of the brand any time soon.
Gary H. Schoenfeld, former Vans chief executive, will take the reins at the teen retailer, effective at the end of the month. He will replace Sally Frame Kasaks, who remains a member of the board of directors.
The news comes as a surprise, since Kasaks' contract was not set to expire until January 2010.
PacSun has been hit hard by the recession, posting an $8.7 million loss in the first quarter.
Schoenfeld's experience at Vans, which is also a skate and surf retailer, should be a positive for the company -- but not a complete transformer.
"While PacSun has made strides in terms of product, the changes have not been enough to move the dial," Roxanne Meyer, analyst at UBS, wrote in a note on Thursday. "Growing competition in the surf/skate niche and the highly promotional environment make this an opportune time for a leadership transition, but we do not expect it to be an overnight fix."
Neither do investors. Shares fell 4% to $3.07 in morning trading.
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