Charlotte Russe Holding Inc, a growing mall-based specialty retailer of fashionable, value- priced apparel and accessories targeting young women in their teens and twenties, today reported financial results for the third quarter of fiscal 2006 ended June 24, 2006.
Mark Hoffman, CEO, remarked: "The Charlotte Russe stores, our core brand, continued to regain market share during the third quarter of fiscal 2006 with an 18.2% increase in comparable store sales. This marks the fourth consecutive quarter of double-digit comp sales increases for the Charlotte Russe stores; and, on a trailing 12-month basis, comparable stores sales rose 16.4% for Charlotte Russe only. We are successfully rebuilding our average store volumes and improving operating margin which, on a year-to-date basis, has risen from 3.6% to 7.3% of sales during fiscal 2006."
"During the past quarter, we decided to dispose of the Rampage stores, and announced on June 29th that we had entered into an agreement to sell 44 of our 64 stores for $14 million. This transaction, and the associated gain on sale, will be recognized in our fourth quarter ended September 30, 2006, with the 44-store transfer expected to be completed by the end of July 2006. Of the 20 locations not included in the transaction, we plan to convert 4 into Charlotte Russe locations and return 12 back to landlords during the fourth quarter. Other than the 4 stores whose alternatives are still under review, we expect to have essentially exited the Rampage business by the end of fiscal 2006."
marketing@alchempro.com
