NEW YORK — Wilsons The Leather Experts Inc. revised its second-quarter guidance last week, as the company reported it is consolidating its El Portal offices into its Minneapolis headquarters from Las Vegas to reduce costs in its travel business.
As a result of the planned Aug. 1 consolidation, the outerwear and accessories retailer expects to take a $2.4 million pretax charge in the second quarter to cover costs associated with various cash and noncash write-offs for employee severance and relocation expenses.
“In addition to further reducing costs, the move will enhance our efforts to improve travel operations and enable the business to more effectively tap into Wilsons Leather’s expertise in managing a large retail chain,” said chief executive officer Joel Waller in a statement.
Due to the aforesaid charge, Wilsons now expects to report a second-quarter loss per share of $1.11 to $1.13, 7 cents a share lower than previously expected. Fully diluted yearend earnings per share is now expected to land at 88 to 93 cents.””