Charming Shoppes Inc a leading multi-brand, multi-channel specialty apparel retailer specializing in women's plus-size apparel,reported sales and earnings for the first quarter ended May 5, 2007.
The Company has also provided an updated earnings outlook for the fiscal year ending February 2, 2008, and has announced an exclusive licensing agreement for the Gitano brand for its Fashion Bug stores.
For the three months ended May 5, 2007, net income was $26.3 million, or $0.20 per diluted share, compared to net income of $32.1 million or $0.24 per diluted share for the three months ended April 29, 2006.
The decline in net income was primarily attributable to decreases in the Company's merchandise margin, related to promotional pricing following unseasonable and unfavorable weather trends during the quarter.
Additionally, lower sales in the Company's apparel-related catalogs contributed to the year over year decline in net income. Net income for the period ended May 5, 2007 met the Company's expectations.
Net sales for the three months ended May 5, 2007 increased 7% to $784.7 million, compared to net sales of $734.9 million for the three months ended April 29, 2006. Net sales for the Company's Retail Stores segment were $685.5 million during the three months ended May 5, 2007, compared to $627.4 million during the three months ended April 29, 2006.
This increase of 9% was driven by the addition of the outlet business, as well as net sales increases at each of the Company's retail brands and related e-commerce businesses.
marketing@alchempro.com
