Pacific Sunwear ( PSUN) has established itself as retail force to be reckoned with, lately garnering huge momentum among its teen shopper-base. But is it time for the company to think about an expansion into new concepts before its surf model gets stale with its sometimes fussy fans? The company, which carries about 10 brands of guys and girls surf and skate apparel, footwear and accessories, posted four quarters of year-over-year profit increases on a 23% jump in total 2003 sales. The company's same-store sales have been on a tear, in the positive double digits since the third quarter of 2002. The stock has responded in kind, roughly doubling over the last 12 months. But PacSun, whose 680 namesake stores cater to shoppers aged 12 to 22, hasn't ventured into a new store concept for six years. In 1998, it started its second concept: 15 hip-hop fashion stores called d.e.m.o. tailored to 16- to 24-year-olds. The company now has about 120 d.e.m.o. stores as well as about 80 PacSun factory stores. Richard Hastings, retail sector analyst at the credit rating firm Bernard Sands, thinks the loyalty of PacSun's customers is a good foundation for expansion and said now is the time to do it. He likened PacSun's growth opportunity to that of the Gap ( GPS) in the 1990s when it expanded into Gap Kids, Baby Gap and Old Navy. Gap also moved into mall-based and non-mall-based locations in both urban and suburban areas. PacSun is capable to do a similar move, though on a slightly smaller scale, Hastings thinks. "When a store is this successful, it's important to experiment," he said. The company, for now, seems wedded to its surf/skate category with no immediate plans to change, even with questions surfacing about the staying power of the surf category.