Mervyns’ liquidation is tightening the financial screws on Hanesbrands Inc.
Liquidation of the retailer’s 149 stores will reduce Hanesbrands’ third-quarter earnings by 4 cents a diluted share, after tax. That’s a $5.5 million pretax charge.
The innerwear producer now expects third-quarter earnings of 17 cents a diluted share, which includes 35 cents worth of restructuring charges and the charge for Mervyns.
The firm will report full results on Oct. 29.
For complete coverage, see Monday’s issue of WWD.