Charming Shoppes sees weak Q2

22 May '08

3 min read

Charming Shoppes Inc reported sales and operating results for the first quarter ended May 3, 2008. The Company also provided its initial earnings outlook for the second fiscal quarter ending August 2, 2008.

Thirteen Weeks Ended May 3, 2008:
For the thirteen weeks ended May 3, 2008, the Company reported income from continuing operations of $0.7 million, or $0.01 per diluted share. This compares to income from continuing operations of $26.5 million, or $0.20 per diluted share for the thirteen weeks ended May 5, 2007.

The Company's income from continuing operations for the first quarter ended May 3, 2008 includes after-tax charges of $2.2 million, or $0.02 per diluted share, related to previously announced consolidation and streamlining initiatives, and $2.4 million, or $0.02 per diluted share, for advisory and legal fees arising out of the proxy contest which was settled on May 8, 2008.

The Company's first quarter results for the current and prior year periods exclude the income statement impact of the non-core misses apparel catalog titles within the Company's Direct-to-Consumer segment, which have been classified as a "discontinued operation".

This is related to the Company's April 25, 2008 announcement that it is exploring a broad range of operating and strategic alternatives, which is expected to result in the sale of its non-core misses apparel catalog titles.

Net sales from continuing operations for the thirteen weeks ended May 3, 2008 decreased 8% to $641.3 million, compared to net sales from continuing operations of $696.6 million for the thirteen weeks ended May 5, 2007.

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