Pacific Sunwear's Bottom Line Beats

Higher margin helps offset light sales.
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Pacific Sunwear's

(PSUN)

second-quarter earnings rose 21% from a year ago, beating estimates as a richer margin helped offset slightly soft sales.

The company earned $21.1 million, or 28 cents a share, in the quarter, compared with $17.5 million, or 22 cents a share, a year ago. Excluding items, earnings were 30 cents a share in the quarter, beating the Thomson First Call consensus earnings estimate.

Sales rose 14% from a year ago to $309.1 million, just below the consensus estimate of $311.5 million.

"Our 21% increase in net income reflects an improving sales trend and an increase in operating margin," Pac Sun said. "We are well positioned to achieve strong results for the balance of 2005.''

The stock rose 18 cents to $23.99 after hours.