Exhibit 99.1

CONTACT:
Michael W. Kaplan
Chief Financial Officer
(714) 414-4003

FOR IMMEDIATE RELEASE

PACIFIC SUNWEAR ANNOUNCES
SECOND QUARTER OPERATING RESULTS;
ISSUES THIRD QUARTER GUIDANCE

ANAHEIM, Calif., August 23, 2011 — Pacific Sunwear of California, Inc. (NASDAQ: PSUN), a leading specialty retailer rooted in the action sports, fashion and music influences of the California lifestyle, today announced that net sales for the second quarter of fiscal 2011 ended July 30, 2011, were $214.9 million versus net sales of $218.3 million for the second quarter of fiscal 2010 ended July 31, 2010. Total Company same-store sales increased 1% during the period. The Company ended its second quarter of fiscal 2011 with 821 stores, as compared to 880 for the second fiscal quarter of 2010.

For the second quarter of fiscal 2011, the Company reported a net loss of $19.3 million, or $(0.29) per share, compared to a net loss of $23.5 million, or $(0.36) per share, for the second quarter of fiscal 2010. Results for the second quarter of fiscal 2011 and 2010 reflect the continuing impact of a valuation allowance against the Company’s deferred tax assets. On a non-GAAP basis, using a normalized annual income tax rate of approximately 36%, the Company’s net loss for the second quarter was $12.2 million, or $(0.18) per share, as compared to a net loss of $14.7 million, or $(0.22) per share, for the same period a year ago.

“We continued to make progress in the second quarter as evidenced by our results, which included our second consecutive quarter of positive comps, better than expected merchandise margins, reduced inventories, and further reductions in operating expenses,” said Gary H. Schoenfeld, President and Chief Executive Officer. “Until recently we had expected this positive momentum to continue, yet we are now more cautious in our near term outlook due to a combination of factors including macroeconomic pressure, along with a highly promotional start to the back to school season.”

Financial Outlook for Third Fiscal Quarter of 2011

The Company’s guidance range for the third quarter of fiscal 2011 contemplates a GAAP net loss per share of $(0.16) to $(0.29), which reflects the continuing impact of maintaining a valuation allowance against deferred tax assets and a low effective tax rate. On a non-GAAP basis, using a normalized annual income tax rate of approximately 36%, the Company’s guidance range translates to a net loss of $(0.10) to $(0.18) per share for the third quarter of fiscal 2011. The forecasted third quarter GAAP guidance range is based on the following assumptions:

	•		Same-store sales of mid to high negative single digit comps;
	•		Gross margin rate, including buying, distribution and occupancy, of 22% to 24%;
	•		SG&A expenses in the range of $66 million to $68 million; and

3450 East Miraloma Avenue • Anaheim, CA 92806 • (714) 414-4000

•

Minimal income tax expense as the Company no longer records income tax benefits against its operating losses.

About Pacific Sunwear of California, Inc.

Pacific Sunwear of California, Inc. and its subsidiaries (collectively, “PacSun” or the “Company”) is a leading specialty retailer rooted in the action sports, fashion and music influences of the California lifestyle. The Company sells a combination of branded and proprietary casual apparel, accessories and footwear designed to appeal to teens and young adults. As of August 23, 2011, the Company operates 821 stores in all 50 states and Puerto Rico. PacSun’s website address is www.pacsun.com.

The Company will be hosting a conference call today at 4:30 p.m. Eastern time to review the results of its second fiscal quarter. A telephonic replay of the conference call will be available, beginning approximately two hours following the call, for one week and can be accessed in the United States and Canada at (855) 859-2056 or internationally at (404) 537-3406; passcode: 90182379. For those unable to listen to the live Web broadcast or utilize the call-in replay, an archived version will be available on the Company’s investor relations website through midnight, November 28, 2011.

About Non-GAAP Financial Measures

This press release and the accompanying tables include non-GAAP financial measures. For a description of these non-GAAP financial measures and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles, please see the accompanying table titled “Reconciliation of Selected GAAP Measures to Non-GAAP Measures” and the section following such table titled “About Non-GAAP Financial Measures.”

Pacific Sunwear Safe Harbor

This press release contains “forward-looking statements” including, without limitation, the statements made by Mr. Schoenfeld in the third paragraph and the statements made under the heading “Financial Outlook for Third Fiscal Quarter of 2011.” In each case, these statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company intends that these forward-looking statements be subject to the safe harbors created thereby. These statements are not historical facts and involve estimates, assumptions and uncertainties that could cause actual results to differ materially from those expressed in such forward-looking statements. Uncertainties that could adversely affect the Company’s business and results include, among others, the following factors: increased sourcing and product costs; adverse changes in economic conditions generally; adverse changes in consumer spending; changes in consumer demands and preferences; adverse changes in same-store sales declines; higher than anticipated markdowns and/or higher than estimated selling, general and administrative costs; currency fluctuations; competition from other retailers and uncertainties generally associated with apparel retailing; merchandising/fashion risk; lower than expected sales from private label merchandise; reliance on key personnel; economic impact of natural disasters, terrorist attacks or war/threat of war; shortages of supplies and/or contractors as a result of natural disasters or terrorist acts, which could cause unexpected delays in store relocations, renovations or expansions; reliance on foreign sources of production; and other risks outlined in the Company’s filings with the Securities and Exchange Commission (“SEC”), including but not limited to the Company’s Annual Report on Form 10-K for the year ended January 29, 2011, and subsequent periodic reports filed with the SEC. Historical results achieved are not necessarily indicative of future prospects of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company assumes no obligation to update or revise any such forward-looking statements to reflect events or circumstances that occur after such statements are made. Nonetheless, the Company reserves the right to make such updates from time to time by press release, periodic report or other method of public disclosure without the need for specific reference to this press release. No such update shall be deemed to indicate that other statements not addressed by such update remain correct or create an obligation to provide any other updates.

3450 East Miraloma Avenue • Anaheim, CA 92806 • (714) 414-4000

PACIFIC SUNWEAR OF CALIFORNIA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands except share and per share data)

		Second Quarter Ended								First Half Ended
		July 30,				July 31,				July 30,				July 31,
		2011				2010				2011				2010
Net sales		$	214,898			$	218,336			$	400,652			$	408,644
Gross margin			49,480				50,758				84,970				93,223
SG&A expenses			67,840				73,945				133,981				147,099
Operating loss			(18,360	)			(23,187	)			(49,011	)			(53,876	)
Other expense, net			571				76				1,114				77
Loss before income taxes			(18,931	)			(23,263	)			(50,125	)			(53,953	)
Income tax expense			328				202				604				540
Net loss		$	(19,259	)		$	(23,465	)		$	(50,729	)		$	(54,493	)
Net loss per share:
Basic and Diluted		$	(0.29	)		$	(0.36	)		$	(0.76	)		$	(0.83	)
Weighted average shares outstanding:
Basic and Diluted			66,343,761				65,950,825				66,273,810				65,894,376

PACIFIC SUNWEAR OF CALIFORNIA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)

		July 30,				January 29,				July 31,
		2011				2011				2010
ASSETS
Current assets:
Cash & cash equivalents		$	13,252			$	63,710			$	25,041
Inventories			163,332				95,701				174,790
Prepaid expenses			16,893				11,669				13,394
Other current assets			5,677				4,773				3,009
Total current assets			199,154				175,853				216,234
Property and equipment, net			170,879				193,180				224,821
Other long-term assets			32,119				32,243				29,492
Total assets		$	402,152			$	401,276			$	470,547
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	97,411			$	41,028			$	88,193
Other current liabilities			40,714				42,186				46,089
Total current liabilities			138,125				83,214				134,282
Deferred lease incentives			24,681				28,553				34,090
Deferred rent			19,050				19,786				20,635
Mortgage debt			28,828				29,093				—
Other long-term liabilities			25,859				26,296				27,087
Total liabilities			236,543				186,942				216,094
Total shareholders’ equity			165,609				214,334				254,453
Total liabilities and shareholders’ equity		$	402,152			$	401,276			$	470,547

3450 East Miraloma Avenue • Anaheim, CA 92806 • (714) 414-4000

PACIFIC SUNWEAR OF CALIFORNIA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)

		First Half Ended
		July 30,				July 31,
		2011				2010
Cash flows from operating activities:
Net loss		$	(50,729	)		$	(54,493	)
Depreciation and amortization			22,437				28,105
Asset impairment			5,785				6,307
Non-cash stock-based compensation			1,736				2,112
Loss on disposal of property and equipment			63				632
Changes in operating assets and liabilities:
Inventories			(67,631	)			(85,125	)
Accounts payable and other current liabilities			55,810				52,068
Other assets and liabilities			(11,188	)			(6,882	)
Net cash used in operating activities			(43,717	)			(57,276	)
Cash flows from investing activities:
Capital expenditures			(6,938	)			(10,917	)
Proceeds from insurance settlements			300				—
Net cash used in investing activities			(6,638	)			(10,917	)
Cash flows from financing activities:
Proceeds from exercise of stock options			314				303
Principal payments under mortgage borrowings			(248	)			—
Principal payments under capital lease obligations			(169	)			(160	)
Net cash (used in) provided by financing activities			(103	)			143
Net decrease in cash and cash equivalents			(50,458	)			(68,050	)
Cash and cash equivalents, beginning of period			63,710				93,091
Cash and cash equivalents, end of period		$	13,252			$	25,041

PACIFIC SUNWEAR OF CALIFORNIA, INC.
SELECTED STORE OPERATING DATA

		July 30,				July 31,
		2011				2010
Stores open at beginning of fiscal year			852				894
Stores opened during the period			—				2
Stores closed during the period			(31	)			(16	)
Stores open at end of period			821				880

		July 30,								July 31,
		2011								2010
						Square								Square
		Store				Footage				Store				Footage
		Count				(000s)				Count				(000s)
PacSun stores			700				2,712				755				2,906
PacSun Outlet stores			121				489				125				505
Total stores			821				3,201				880				3,411

3450 East Miraloma Avenue • Anaheim, CA 92806 • (714) 414-4000

PACIFIC SUNWEAR OF CALIFORNIA, INC.
RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES
(unaudited, in thousands except share and per share data)

		Second Quarter Ended								First Half Ended
		July 30,				July 31,				July 30,				July 31,
		2011				2010				2011				2010
GAAP net loss		$	(19,259	)		$	(23,465	)		$	(50,729	)		$	(54,493	)
Valuation allowance			7,037				8,778				18,699				20,287
Non-GAAP net loss		$	(12,222	)		$	(14,687	)		$	(32,030	)		$	(34,206	)
GAAP net loss per share		$	(0.29	)		$	(0.36	)		$	(0.76	)		$	(0.83	)
Valuation allowance per share			0.11				0.13				0.28				0.31
Non-GAAP net loss per share		$	(0.18	)		$	(0.22	)		$	(0.48	)		$	(0.52	)
Shares used in calculation			66,343,761				65,950,825				66,273,810				65,894,376

Financial Outlook GAAP to Non-GAAP Reconciliation:

		Guidance for the
		third fiscal
		quarter of 2011
GAAP net loss per share		$(0.16) - $(0.29		)
Valuation allowance per share*		$0.06 - $0.11
Non-GAAP net loss per share		$(0.10) - $(0.18		)

ABOUT NON-GAAP FINANCIAL MEASURES

The accompanying press release dated August 23, 2011 contains non-GAAP financial measures. These non-GAAP financial measures include non-GAAP net loss and non-GAAP net loss per share for the second quarter and first half of fiscal 2011 and 2010 and non-GAAP net loss per share guidance for the third quarter of fiscal 2011. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same names and may differ from non-GAAP financial measures with the same or similar names that are used by other companies. The Company computes non-GAAP financial measures using the same consistent method from quarter to quarter and year to year. The Company may consider whether other significant items that arise in the future should be excluded from the non-GAAP financial measures. The Company has excluded the following item from all of its non-GAAP financial measures:

•

Deferred tax asset valuation allowance charges

The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding the Company’s operating results primarily because they exclude amounts that are not considered part of ongoing operating results when planning and forecasting and when assessing the performance of the organization, individual operating segments or its senior management. In addition, the Company believes that non-GAAP financial information is used by analysts and others in the investment community to analyze the Company’s historical results and in providing estimates of future performance and that failure to report these non-GAAP measures could result in confusion among analysts and others and a misplaced perception that the Company’s results have underperformed or exceeded expectations.

3450 East Miraloma Avenue • Anaheim, CA 92806 • (714) 414-4000