News Flash

Net sales of Charlotte improves 35% during Q2 fiscal'06

29 Mar '06

2 min read

San Diego based growing mall-based fashion retailer Charlotte Russe Holding Inc reported that net sales increased approximately 35 percent during the second quarter of fiscal 2006, which ended on March 25, 2006.

Sales at comparable stores increased approximately 17 percent during the second quarter, which exceeded the previous guidance on January 19th of a low double-digit increase.

Based on these sales results, the company currently expects diluted earnings per share in the second quarter to range from $0.01 to $0.03, subject to quarter-end adjustments, and before taking into account a cumulative pre-tax adjustment for gift card income of $2.0 million. This compares to the previous guidance on January 19th of a range of loss per share of $0.03 to $0.07 per share.

Consistent with recent announcements from other retailers, the company has completed its analysis of unredeemed gift card liabilities. Beginning with the second quarter of fiscal 2006, these amounts will be accounted for under the redemption recognition method and will be classified as additional sales as the gift cards are redeemed.

Based upon historical redemption trends, the company will recognize a one-time cumulative adjustment to revenue and pre-tax income of $2.0 million, or approximately 5 cents of earnings per share, as of the beginning of the second quarter of fiscal 2006.

Management expects to release the second quarter financial results before the market opens on Thursday, April 20, 2006, with a teleconference call scheduled for 8:00 a.m. (Pacific Time). Interested listeners are invited to participate in that conference call which will be broadcast over the internet at http://www.charlotte-russe.com.

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