Charming Shoppes sees wider loss in third quarter

11 Oct '08

5 min read

For the three month period ending November 1, 2008, the Company has updated its projection for a diluted loss per share from continuing operations in the range of $(0.35) to $(0.37), compared to diluted loss per share from continuing operations of $(0.01) for the corresponding period ended November 3, 2007.

The Company's projection for the third quarter assumes net sales from continuing operations in the range of $535 to $545 million, compared to net sales from continuing operations of $599.7 million for the period ended November 3, 2007.

The Company's projection assumes a continuation of current selling trends, resulting in decreases in consolidated comparable store sales in the low double digits for the Company's Retail Stores segment, compared to an 8% decrease in consolidated comparable store sales in the prior year.

Previously, the Company had projected a diluted loss per share from continuing operations in the range of $(0.09) to $(0.11).

For the three month period ending January 31, 2009, the Company anticipates a comparable to slightly greater diluted loss per share from continuing operations, as compared to the corresponding period ended February 2, 2008.

This projection assumes a continuation of current sales trends, resulting in decreases in consolidated comparable store sales in the low double digits for the Company's Retail Stores segment, compared to a 9% decrease in consolidated comparable store sales in the corresponding period of the prior year.

The Company had previously anticipated narrowing its diluted loss per share from continuing operations for the fourth quarter ending January 31, 2009, as compared to the corresponding period ended February 2, 2008.

Rosskamm summarized, "The decisive actions we have announced today with respect to our Fall inventories are consistent with other initiatives we have announced over the last several months in order to improve our performance.

It has been our strategy to return the Company's focus and energies to our core brands Lane Bryant, Fashion Bug and Catherines.

"We have hired Brian Woolf as President of Lane Bryant in July, and Jay Levitt as President of Fashion Bug in September. We completed the sale of our non-core misses catalog titles to Orchard Brands.

We also announced an agreement for the sale of the misses apparel catalog credit card receivables to Alliance Data Systems Corporation, with an expected closing prior to the Company's January 31, 2009 fiscal year end. Finally, we are actively exploring the sale of our Figi's Gifts in Good Taste catalog business.

"Although we have completed many of the cost reduction initiatives we announced earlier in the year, we are aggressively pursuing additional cost savings opportunities.

Collectively, the actions we are undertaking will position us to improve future operating performance, and more importantly, preserve cash and maintain a strong balance sheet through this challenging environment."

Charming Shoppes Inc

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