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Charlotte Russe announces outlook for Q3 of fiscal 2008

26
Mar '08

Charlotte Russe Holding Inc, a growing mall-based specialty retailer of fashionable, value-priced apparel and accessories targeting young women in their teens and twenties, supplemented the Company's previous earnings guidance for the second quarter ending March 29, 2008 and provided the Company's current outlook for the third quarter ending June 28, 2008.

Income Tax Adjustment:
A favorable tax adjustment of approximately $830,000 will be recorded in the second quarter of fiscal 2008 resulting in a $0.03 benefit to diluted earnings per share. In addition, the Company is reducing the estimated effective income tax rate for fiscal 2008 from 39.4% to 38.3%.

The second quarter tax adjustment includes a reversal of a prior year tax accrual of approximately $580,000. The remaining adjustment reflects the impact of a lower effective tax rate in the first quarter of fiscal 2008. Beginning with the second quarter, the Company will accrue income tax expense at the revised rate of 38.3%.

The reduction in the estimated effective income tax rate is primarily driven by a revised blended state tax rate.

Second Quarter Earnings Guidance:
Based on business trends to-date, and excluding the tax adjustment described above, the Company re-affirms its previous sales and earnings guidance range of $0.12 to $0.15 diluted earnings per share for the second quarter ending March 29, 2008. Taking into account the $0.03 impact of the tax adjustment described above, the Company now anticipates diluted earnings per share in the range of $0.15 to $0.18 for the second quarter ending March 29, 2008.

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