Teen apparel retailer Pacific Sunwear (PSUN) announced store closures, financing and third quarter results late yesterday.
The company said it had completed negotiations with landlords that will result in the closing of 175-200 underperforming stores within the next 14 months. The company arranged for 75 lease buyouts, 50 short-term lease extensions and lease terminations upon expiration for about 115 stores.
PacSun also said it has completed a new five-year $100 million revolving credit facility with Wells Fargo (WFC) and has secured a five-year $60 million senior secured term loan from private equity firm Golden Gate Capital.
For the third quarter, the company said it recorded a loss of $17.6 million, or $0.26 per share, compared to a loss of $7 million, or $0.11 per share, last year.
An adjusted loss of $0.10 per share was narrower than analysts anticipated.
Sales fell to $242 million from $258 million in last year's third quarter, on same-store sales declines of 3%.
News of the store restructuring is sending PacSun shares higher Thursday.
Also late yesterday, G-III (NASDAQ:GIII) Apparel Group posted third quarter earnings of $43.6 million, or $2.16 per share, compared to $42.7 million, or $2.16 per share, last year.
The manufacturer of clothing and accessories under brands including PVH's (NYSE:PVH) Calvin Klein, Kenneth Cole, Cole Haan, and Guess (NYSE:GES) said revenue rose 13%, to $510 million.
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