PacSun cuts jobs and sees lower capex in 2009
Jan 28 (Reuters) - Athletic-clothing retailer Pacific Sunwear of California Inc (PSUN.O) said it cut 57 jobs and slashed its capital expenditure budget as part of its cost-cutting measures to combat the weak economy.
Pacsun girls spring-summer 2009
The company said it cut 47 positions at its Anaheim, California headquarters and 10 field management positions, reducing its headquarters and field management staff by about 11 percent.
The company sees related pre-tax severance charges of about $1.5 million during the fourth quarter of 2008 and expects pre-tax savings of about $5 million per year beginning in fiscal 2009.
For fiscal 2009, which begins on Feb. 1, PacSun plans to spend not more than $30 million, a reduction of more than $50 million over the last year.
PacSun, which smaller rival Adrenalina (AENA.OB) has offered to buy but has been rebuffed, also said it will cut inventories by at least 20 percent and selling, general and administrative expenses by about $35 million for the year.
PacSun's shares, which have shed 93 percent since April last year, rose 12 percent to $1.19 Wednesday afternoon on Nasdaq. (Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Deepak Kannan)