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Charlotte Russe plans to open 60 new stores in fiscal 08
24 Apr '08
4 min read
Current Outlook:
Mark Hoffman, Chief Executive Officer, remarked, "On our press release dated March 26, 2008 we commented that we had experienced a decline in sales trends during the back half of the second quarter. While we are pleased to have achieved our earnings guidance for the second quarter, we continue to remain cautious in this retail climate. Based on our current outlook, we are maintaining our previous guidance range of a flat to low single digit comparable store sales decline for the third quarter of fiscal 2008.
We estimate the share repurchase program will have a favorable impact of approximately $0.04 on diluted EPS for the third quarter. Accordingly, our previous guidance of $0.27 to $0.30 diluted earnings per share is now in the range of $0.31 to $0.34 for the third quarter when adjusted for the share repurchase. This compares to diluted earnings per share of $0.40 for the third quarter last year."
As has been the Company's policy, third quarter guidance does not include the potential of any business risks, opportunities or developments that may occur after April 23, 2008. Management does not expect to report on its third quarter financial performance, or to comment on it to the investment community, until after the financial results for the third quarter have been released on or about July 23, 2008.
New store openings:
The Company opened 10 new stores in the second quarter for a total of 18 new stores fiscal year-to-date. The Company closed 2 stores during the second quarter. The target for fiscal 2008 is to open approximately 60 new stores.
Share Repurchase:
On April 9, 2008 the Company announced the final results of its previously announced modified "Dutch Auction" tender offer, which expired on Wednesday, April 2, 2008. The Company repurchased 4,080,000 shares in the tender offer, at a price of $18.00 per share, for a total cost of $73.4 million, excluding related fees and expenses.
The 4,080,000 shares repurchased in the tender offer represented 16.3 percent of the shares outstanding on April 2, 2008 and the transaction was funded from the Company's existing cash balance. Mark Hoffman, Chief Executive Officer added, "We are pleased with the successful completion of a significant share repurchase which we believe is an important step in increasing shareholder value."
Mark Hoffman, Chief Executive Officer, remarked, "On our press release dated March 26, 2008 we commented that we had experienced a decline in sales trends during the back half of the second quarter. While we are pleased to have achieved our earnings guidance for the second quarter, we continue to remain cautious in this retail climate. Based on our current outlook, we are maintaining our previous guidance range of a flat to low single digit comparable store sales decline for the third quarter of fiscal 2008.
We estimate the share repurchase program will have a favorable impact of approximately $0.04 on diluted EPS for the third quarter. Accordingly, our previous guidance of $0.27 to $0.30 diluted earnings per share is now in the range of $0.31 to $0.34 for the third quarter when adjusted for the share repurchase. This compares to diluted earnings per share of $0.40 for the third quarter last year."
As has been the Company's policy, third quarter guidance does not include the potential of any business risks, opportunities or developments that may occur after April 23, 2008. Management does not expect to report on its third quarter financial performance, or to comment on it to the investment community, until after the financial results for the third quarter have been released on or about July 23, 2008.
New store openings:
The Company opened 10 new stores in the second quarter for a total of 18 new stores fiscal year-to-date. The Company closed 2 stores during the second quarter. The target for fiscal 2008 is to open approximately 60 new stores.
Share Repurchase:
On April 9, 2008 the Company announced the final results of its previously announced modified "Dutch Auction" tender offer, which expired on Wednesday, April 2, 2008. The Company repurchased 4,080,000 shares in the tender offer, at a price of $18.00 per share, for a total cost of $73.4 million, excluding related fees and expenses.
The 4,080,000 shares repurchased in the tender offer represented 16.3 percent of the shares outstanding on April 2, 2008 and the transaction was funded from the Company's existing cash balance. Mark Hoffman, Chief Executive Officer added, "We are pleased with the successful completion of a significant share repurchase which we believe is an important step in increasing shareholder value."
Charlotte Russe Holding Inc
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