26 March 1998: US-based Sunglass Hut International Inc. reported that it would close 250 outlets, discontinue its prescription eyeglass business and write-down other assets as part of a broad restruct…
26 March 1998: US-based Sunglass Hut International Inc. reported that it would close 250 outlets, discontinue its prescription eyeglass business and write-down other assets as part of a broad restructuring plan. The world“s largest specialty retailer of sunglasses said it was taking US$ 103 million in pre-tax charges in its fiscal fourth quarter to cover the plan. It estimated that annual pre-tax earnings could improve by up to US$ 10 million when the restructuring was completed by fiscal 1999. The company reportedly broke the news after it released results for the fourth quarter ended in January, in which its net loss increased to US$ 79.1 million, or US$ 1.45 a share, from a loss of US$ 24.4 million, or US$ 0.45, in the same period the previous year. Sales for the 1998 fiscal year rose 9.9% to US$ 573.8 million from US$ 522.3 million for 52 weeks ended 1 February 1997. Sales for stores opened at least a year were reported flat, and the figures include the stores to be closed. Sunglass Hut, with more than 2,000 outlets around the world, said the net cash impact of the restructuring was expected to be positive in 1998, with cash restructuring costs likely to be offset by income tax savings and inventory reduction.