It's hard to imagine that there could be any undiscovered or undervalued retail concepts left out there. Stocks of companies such as Abercrombie & Fitch (NYSE:ANF), American Eagle Outfitters (NASDAQ:AEOS), and Urban Outfitters (NASDAQ:URBN) have all been on tears over the past year as robust same-store sales growth has lit up investors' eyes. While PacificSunwear's (NASDAQ:PSUN) performance hasn't been anything to cry about, investors haven't shown this retailer quite as much love as they have these others.

The question remains, though, as to whether Pacific Sunwear deserves, and is likely to get, more love.

Second-quarter results would normally be thought of as pretty good. Sales were up 14%, and the company posted more than 3% same-store sales growth. Margins improved a bit, and the company posted better than 20% growth for both net income and EPS.

Investors will also note that the company underwent an adjustment to its accounting practices. The change concerns a promotional activity that the company engages in three times a year. While the issuance of the promotional PacBucks and their redemption generally coincide in the same quarter, the back-to-school season is the exception. Consequently, PacSun will now split the recognition between the second and third quarters. This doesn't really change anything -- it just moves a bit of sales and earnings from one quarter to the next.

PacSun management also announced the launch of a new retailing concept. This store, to be called One Thousand Steps, will focus on shoes and accessories and will complement the company's existing PacSun and d.e.m.o. concepts. If investors are nervous about a clothier launching a footwear concept, remember that footwear has traditionally been a pretty good category within PacSun, and so management does know something about this market.

I currently have this stock on my watch list. I'm not exactly ecstatic about the company's somewhat modest same-store sales growth (relative to other teen/youth retailers), but I see the company trying to improve its layout and freshen up its merchandise. If it pulls this off, better sales, profits, and performance could lie ahead.

For more trendy Foolishness on the hot-hot retail space, try on the following for size:

Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).