Pacific Sunwear Announces Cuts
Anaheim, Calif. Pacific Sunwear of California Inc. said Wednesday it will cut 57 jobs or about 11% of its headquarters and field management staff, as part of a cost-cutting effort amid the weakening retail environment.
The company will eliminate 47 jobs at its Anaheim, Calif.-based headquarters and 10 field-management positions.
It will also lower capital spending to about $30 million from the more than $80 million it spent in 2008 and reduce inventory levels by at least 20% throughout the year.
Pacific Sunwear expects to take severance charges of $1.5 million in the fourth quarter ending Jan. 31 related to the job cuts and plans to save $5 million annually from the moves beginning in fiscal 2009, which begins Feb. 1.
“The actions announced today are aimed at putting our company in a stronger position to weather the continuing challenges in the macroeconomic environment while enabling us to continue moving forward with the key strategic initiatives we have under way,” said Sally Frame Kasaks, chairman and CEO.
Pacific Sunwear added that with its current cost cuts it expects to maintain sufficient borrowing availability for the foreseeable future under its $150 million revolving credit facility, which expires in 2013.
Tuesday Morning suffers 2Q loss
DALLAS Tuesday Morning reported that as previously announced, net sales for the second quarter of fiscal 2009 were $272.7 million compared to $308.7 million for the quarter ended Dec. 31, 2007, a decrease of 11.7%. Comparable-store sales decreased 14.9% for the quarter compared to the same quarter in the prior year.
According to the company, the decrease in comparable-store sales was comprised of a 9.6% decrease in traffic and a 5.3% decrease in average ticket.
Net income for the second quarter was $12.7 million or 31 cents per diluted share, compared to $20.5 million or 50 cents per diluted share during the same quarter last year.
Kathleen Mason, president and CEO, stated, “The December 2008 quarter was reported as the most difficult retail holiday season on record. While consumers remain cautious, we remain focused on preserving our strong balance sheet, managing inventory levels and generating positive cash flow.”
Obama figurine added to Chia product line
SAN FRANCISCO Joseph Enterprises, makers of the Chia Pet line of products, has introduced the Chia Obama, in honor of the 44th U.S. president.
The Special Edition CHIA OBAMA is a handmade decorative figurine in the likeness of President Barack Obama.