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5 Annual Report Annual

5 Annual Report Annual Report 2014 This was a class project where we were assigned to redo an annual report of a company of our choice. I was, and still am, a fan of Pacsun and their brand style so I chose their annual report to redesign. I created a main sun design that I thought embodied their brand and manipulated it on every page throughout the report. Here are only a few pages of the annual report I created. Our mission is to provide our customers with a compelling product assortment and great shopping experience that together highlight a premium mix of both branded and proprietary merchandise that speak to the acton sports, fashion and music influneces of the California lifestyle. Pacsun’s foundation has traditionally been built upon great collection of aspirational brands, which today includes Harley, Nike, Brandy Melville, Volcom, Vans, Kendall and Kylie, RVCA, Diamond Supply Co., Gypsy Warrior, Adidas, Been Trill, Billabong, O’Neil, Crooks and Castles, Fox Racing, V/SUAL, L-R-G, Modern Amusement, Neff, Riot Society, Roxy, and Young and Reckless, among others. We sometime enter into liscense agreements with some of these brands as a complement ro our more typical wholesale relationship. We aso continue to invest in and grow our proprietarybrands, which include Bullhead, LA Hearts, On The Byas, Nollie, and Reign+Storm. During fiscal 2012, we launched our “Golden State of Mind” (”GSOM”) brand positioning which reflects the optimism, creativity and diversity of Pacsun’s California heritage. The concept is being realized through print advertising, online social media, in-store elements, events, and our website, www.pacsun.com. In fiscal 2013, we further defined our GSOM brand positioning by showcasing our unique brands and selective music influences at our summer pop-up store in the heart of Soho on Broadway in lower Manhattan. Along with refreahing our brand logo this year and updating some of our older generation stores to out current branding, we applied shop-in-shop learnings from the Soho store to select top stores. In fiscal 2014, we continued to expand our GSOM brand positioning by celebrating the official start of summer and the longest day of the year with the first annual GSOM Day, which began the sunrise in Puerto Rico and concluded with the sun setting in Hawaii. Customer engagement included live events. in-store activations, and on-line sweepstakes.

6 Pacific Sunwear of California, Inc. (together with its wholly-owned subsidiaries, the “Company,” “Registrant,” “Pacsun,” “we,” or “our”) is a leading specialty retailer rooted in the action sports, fashion and music influences of the California lifestyle. We sell a combination of branded and proprietary casual apparel, accessories, and footwear designed to appeal to teans and young adults. We operate a nationwide, primarily mallbased chain of retail stores under the names “Pacific Sunwear” and “PacSun.” The Company, a California corporation, was incorporated in August 1982. As of January 31, 2015, we leased and operated 605 stores in each of the 50 states and Puerto Rico, comprised of 2.4 million total square feet. Our focus on brands and culture is clearly resonating with our target customers. We concluded 2014 with our 12th straight quarter of positive comparable store sales (increasing 6% in the fourth quarter) and recorded an increase in our annualcomparable store sales of 3%. Additionally, we continue to increase gross margins by reducing markdowns and imporving our inventory position. Since 2011, our gross margins have increased by 500 basis points and we believe we can still find a bit more.

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