NEW YORK (TheStreet) -- Pacific Sunwear of California (PSUN), the specialty retailer, unveiled a restructuring plan Wednesday that calls for the closure of 175 to 200 underperforming stores over the next 14 months.
The company also said it has secured a five-year, $60 million term loan from private-equity firm Golden Gate Capital, and that it has completed a five-year, $100 million revolving credit line with Wells Fargo Capital Finance.
"The combination of these transactions greatly enhances our financial and operating position, and is another critical step forward as we work to re-establish PacSun as a leading specialty retailer across the U.S.," said Gary Schoenfeld, the company's president and CEO, in a statement. "With the support from all of our major landlords, we can now focus on our targeted base of 550-600 better performing stores and our enhanced merchandising and marketing strategies for becoming the preferred destination among teens and young adults for great style and great brands."
Shares were surging 37% to $1.85.
MEMC Electronic Materials (WFR) said it will reduce its total work force by more 1,300 people, or about 20% of its employees, in 2012 and beyond as part of a global restructuring plan. Shares were tumbling 3.1% to $4.08.
Unionized Boeing (BA) machinists voted to approve a four-year contract extension. "This contract will help secure a better future for our employees, our customers, our communities and our company," said Jim Albaugh, president and CEO of Boeing Commercial Airplanes. "It reflects an effort on the part of the company and the union to find a better way to work together and achieve common ground." Boeing promised that if workers approved the pact, the company would build the new version of the 737 in the Puget Sound region, while the machinists said they would drop their allegations that Boeing opened a nonunion assembly plant in South Carolina in retaliation for a previous strike. Machinists went on strike in 2005 and 2008. The strike in 2008 led to delivery delays for Boeing's first 787. Separately, Bloomberg reported that FedEx (FDX) plans to order about 30 Boeing wide-body freighters to replace older, less fuel- efficient jets. The report cited people familiar with the situation. The planes would be valued at about $5.26 billion at list prices, the report said. Boeing shares were up 0.6% at $71.
Costco (COST), the warehouse retailer, earned $320 million, or 73 cents a share, in the fiscal first quarter, up from $312 million, or 71 cents, a year earlier. The latest quarter includes charges of 7 cents a share. Net sales rose 13% to $21.18 billion from $18.82 billion. Including membership fees, revenue rose 12% to $21.63 billion. Comparable-store sales in the quarter rose 10%. Analysts were expecting profit of 80 cents a share on sales of $21.29 billion. Costco said membership fee revenue rose 7.5% in the first quarter to $447 million. Shares were falling 0.5% to $87.05 in premarket trading Thursday.
Smithfield Foods (SFD), the pork producer, reported second-quarter profit 76 cents a share on revenue of $3.3 billion, beating the average analyst earnings estimate of 71 cents a share on revenue of $3.2 billion. Shares were trading sideways at $24.93.
Brown-Forman (BF.A), the maker of Jack Daniels and Southern Comfort, is expected by analysts Thursday to earn $1.09 a share in the fiscal second quarter on revenue of $957 million.
THQ (THQI), the entertainment software maker, lowered its revenue outlook for the third quarter because of weak sales of its uDraw game tablet on the XBox 360 and Sony Playstation 3 gaming systems. -- Written by Joseph Woelfel and Andrea Tse
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