Home / Knowledge / News / Apparel/Garments / Capital base & liquidity profile remain solid, Charming CEO
Capital base & liquidity profile remain solid, Charming CEO
04
Jun '10
Charming Shoppes, Inc., a leading multi-brand apparel retailer specializing in women's plus-size apparel, today reported sales and operating results for the three month period ended May 1, 2010.

Results for the quarter, compared to the same quarter of the prior year, include:

• Net sales decreased $33.3 million or 6.2% to $504.8 million, reflecting the impact of 144 net store closings over the previous twelve months, a 2% decrease in comparable store sales, a decrease in the Company's Direct-to-Consumer Segment's sales related to the closing of the Lane Bryant Woman catalog and shoetrader.com in the first half of fiscal year 2009, and a 36% increase in e-commerce sales. For the quarter, period-end same store inventories on a cost basis increased 9%;
• Gross profit was $276.6 million in the quarter, reflecting a decrease of $11.0 million, or 3.8%. Gross margin improved 140 basis points to 54.8% of sales, partially offsetting the impact of the 6.2% sales decline;
• Income tax benefit was $0.7 million in the current quarter, related to a reduction in the valuation allowance, compared to an income tax provision of $4.7 million in the year ago period, related to an increase in the liability for unrecognized tax benefits;
• An increase in the Company's cash position for the quarter ended May 1, 2010 to $191 million, compared to $187 million for the period ended January 30, 2010;
• Total liquidity of $336 million, including $191 million in cash and $145 million of net availability under the Company's undrawn committed line of credit.

Commenting on the results for the quarter, Jim Fogarty, President and Chief Executive Officer of Charming Shoppes, Inc. said, "Our capital base and liquidity profile remain solid. During the quarter, we began to make progress in our efforts to stabilize and begin to grow our business. Our same store sales comp improved from (13)% and (12)% in the third and fourth quarters of last year, respectively, to (2)% in the first quarter. For the quarter, our adjusted EBITDA was $25.2 million compared to $27.5 million in the year ago period, as we partially mitigated our comp-driven decline in gross profit dollars with expense reductions and margin rate improvement from the elimination of certain businesses.

"During the third quarter of last year, we reassessed direction for Lane Bryant's assortments, and as a result of that work, made a number of improvements in our Spring 2010 assortments, including refocusing on our core moderate customer, and launching core tops programs, such as Supima Cotton knit tops (the cashmere of cotton), and casual woven shirts (the perfect shirt), and introducing new assortments in swimwear and footwear. Our Lane Bryant same store sales comp for the first quarter was (3)%, which contrasted to (14)% and (15)% in the third and fourth quarters of last year, respectively. Late in the quarter, we introduced a national media campaign which, coupled with a controversy surrounding our 'sexy' Cacique spot, created phenomenal excitement for our customer and our brands. During the fourth quarter of last year, we reassessed direction for Fashion Bug's assortments and as a result repositioned our customer targeting, beginning to bring the fun, sexy and sassy side back to Fashion Bug's assortments. Our Fashion Bug same store sales comp for the first quarter was (2)%, which contrasted to (14)% and (8)% in the third and fourth quarters of last year, respectively. Finally, our consolidated internet business was up 36% for the quarter, benefiting from the August 2009 launch of our new websites and the February 2010 launch of our universal shopping cart along with 'free ship to store' and '$7 ship to home'. We remain focused on our key priorities: (1) Focus on the Customer; (2) Stabilize and Begin to Grow Profitable Revenue; (3) Increase EBITDA; (4) Increase Cash Flow; and (5) Employee Empowerment with Accountability."

Must ReadView All

Textiles | On 19th Jan 2017

Pakistan imposes duty on Indian fine cotton yarn

A provisional countervailing duty ranging from Rs 26.89 to Rs 55.8 a...

Textiles | On 19th Jan 2017

Union Budget: Textile sector expects excise duty revisions

Excise duty on man-made fibres should be reduced to bring it on par...

Union textiles minister Smriti Irani at the inauguration of IIGF in New Delhi with textiles secretary Rashmi Verma and other dignitaries. Courtesy: PIB

Apparel/Garments | On 19th Jan 2017

Ministry to reimburse apparel exporters for state levies

The textile ministry has received a sum of Rs 500 crore from the...

Interviews View All

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search