Pacific Sunwear was among the many retail companies to report August same-store sales today, but it was also one of the best. The seller of trendy threads for young adults said that August sales zoomed 9.6% higher, absolutely shredding the 0.9% gain expected by analysts. Total sales rose 13.6% higher during the month to $181.6 million. PSUN officials said this increase in sales was partially the result of a later back-to-school date in Florida and Texas.
In mid-afternoon trading activity, PSUN shares have tacked on more than 5%, leaping over their 10-day and 20-day moving averages. These short-term trendlines have guided the stock briskly lower since mid-July.
From a longer-term basis, PSUN may have hit double-bottom support last month around the 13 level, from which the stock has subsequently skewed higher. But the shares still have a long way to go before battling with their 10-week moving average, which is perched overhead above the 17 mark.
Short interest could become a factor in shaking the equity out of its doldrums. Almost 18% of PSUN's available float is devoted to the short trade currently, and it would take about 5 days to clear out all of the shorted PSUN shares (at the stock's average daily volume). If the shares can parlay today's sales-related jump into better price action, some short sellers could think about an early exit.