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Charming Shoppes reports Q2 results
28 Aug '08
6 min read
We have closed 78 of the 150 underperforming stores identified for closure during this fiscal year, which is expected to contribute to improvements in our operating performance in future periods. Also, the relocation of our Catherines' home office operations to Bensalem was completed on schedule during the first quarter, and during the second quarter, we completed the sale of our Memphis, Tennessee distribution center, which provided $4.8 million in cash proceeds.
"Earlier this week, we signed an agreement for the sale of our non-core misses catalog titles to Orchard Brands, and announced our plans to explore the sale of our Figi's Gifts in Good Taste catalog business, based in Wisconsin. These announcements support our strategy to refocus our energies on our core brands and to leverage our leading market share position in women's specialty plus apparel.
Our decision to consider selling our Figi's business should not be seen in any way as a negative reflection on the performance of the Figi's business. In fact, Figi's continues to perform quite profitably and generates substantial cash flow. We and our Board of Directors are committed to identifying an appropriate buyer for this attractive asset, but will only do so in a transaction that we deem financially favorable."
Twenty-six Weeks Ended August 2, 2008:
For the twenty-six weeks ended August 2, 2008, the Company reported a loss from continuing operations of $(3.1) million, or $(0.03) per diluted share. This compares to income from continuing operations of $47.4 million, or $0.36 per diluted share for the twenty-six weeks ended August 4, 2007.
The Company's loss from continuing operations for the first half ended August 2, 2008 includes after-tax charges of $5.8 million, or $0.05 per diluted share, related to the severance agreement between Charming Shoppes and its former Chief Executive Officer, $5.8 million, or $0.05 per diluted share, related to previously announced consolidation and streamlining initiatives, and $3.7 million, or $0.03 per diluted share, for advisory and legal fees arising out of the proxy contest which was settled on May 8, 2008.
Net sales from continuing operations for the twenty-six weeks ended August 2, 2008 decreased 7% to $1.290 billion, compared to net sales from continuing operations of $1.391 billion for the twenty-six weeks ended August 4, 2007.
• Net sales for the Company's Retail Stores segment were $1.235 billion during the twenty-six weeks ended August 2, 2008, a decrease of 10% compared to $1.371 billion during the twenty-six weeks ended August 4, 2007. Consolidated comparable store sales for the Company's Retail Stores segment decreased 11% during the twenty-six weeks ended August 2, 2008, compared to a 2% decrease in comparable store sales during the twenty-six weeks ended August 4, 2007.
• Net sales from continuing operations for the Company's Direct-to- Consumer segment were $49.5 million during the twenty-six weeks ended August 2, 2008, compared to $14.6 million during the twenty-six weeks ended August 4, 2007. The strong increase is related to incremental sales related to the launch of the Lane Bryant Woman catalog in November 2007.
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"Earlier this week, we signed an agreement for the sale of our non-core misses catalog titles to Orchard Brands, and announced our plans to explore the sale of our Figi's Gifts in Good Taste catalog business, based in Wisconsin. These announcements support our strategy to refocus our energies on our core brands and to leverage our leading market share position in women's specialty plus apparel.
Our decision to consider selling our Figi's business should not be seen in any way as a negative reflection on the performance of the Figi's business. In fact, Figi's continues to perform quite profitably and generates substantial cash flow. We and our Board of Directors are committed to identifying an appropriate buyer for this attractive asset, but will only do so in a transaction that we deem financially favorable."
Twenty-six Weeks Ended August 2, 2008:
For the twenty-six weeks ended August 2, 2008, the Company reported a loss from continuing operations of $(3.1) million, or $(0.03) per diluted share. This compares to income from continuing operations of $47.4 million, or $0.36 per diluted share for the twenty-six weeks ended August 4, 2007.
The Company's loss from continuing operations for the first half ended August 2, 2008 includes after-tax charges of $5.8 million, or $0.05 per diluted share, related to the severance agreement between Charming Shoppes and its former Chief Executive Officer, $5.8 million, or $0.05 per diluted share, related to previously announced consolidation and streamlining initiatives, and $3.7 million, or $0.03 per diluted share, for advisory and legal fees arising out of the proxy contest which was settled on May 8, 2008.
Net sales from continuing operations for the twenty-six weeks ended August 2, 2008 decreased 7% to $1.290 billion, compared to net sales from continuing operations of $1.391 billion for the twenty-six weeks ended August 4, 2007.
• Net sales for the Company's Retail Stores segment were $1.235 billion during the twenty-six weeks ended August 2, 2008, a decrease of 10% compared to $1.371 billion during the twenty-six weeks ended August 4, 2007. Consolidated comparable store sales for the Company's Retail Stores segment decreased 11% during the twenty-six weeks ended August 2, 2008, compared to a 2% decrease in comparable store sales during the twenty-six weeks ended August 4, 2007.
• Net sales from continuing operations for the Company's Direct-to- Consumer segment were $49.5 million during the twenty-six weeks ended August 2, 2008, compared to $14.6 million during the twenty-six weeks ended August 4, 2007. The strong increase is related to incremental sales related to the launch of the Lane Bryant Woman catalog in November 2007.
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Charming Shoppes Inc
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