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Charming Shoppes amends earnings guidance for year ending Jan, 28

08 Jul '05

7 min read

The Company's previous guidance for the fiscal year ending January 28, 2006 was in the range of $0.58 - $0.62 per diluted share. During the fiscal year ending January 28, 2006, the Company projects approximately $0.07 per diluted share accretion from the acquisition of Crosstown Traders Inc.

The revision to the Company's full year earnings expectations is driven by improved performance in the second quarter from our retail store brands and the expected accretion from the acquisition of Crosstown Traders.

The two major components of the Company's Crosstown Traders business, apparel and gifts, each operate with higher operating margins than Charming Shoppes' retail store brands.

The gift business achieves the majority of its sales and earnings during the Christmas holiday season, resulting in an upwardly revised projection for diluted earnings per share in the fourth quarter ending January 28, 2006.

Projected Sales Revenue: For the fiscal year ending January 28, 2006, the Company projects total sales in a range of $2.72 to $2.75 billion, an increase of 17% - 18% from fiscal year 2005. This projection assumes comparable store sales increases of low single digits for the Company's retail store brands.

The increase in projected sales is primarily a result of the addition of partial year revenues from Crosstown Traders of approximately $320 million. Additionally, through June the Company is experiencing year over year sales gains at its retail store brands as a result of improved merchandise assortments.

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