Charming Shoppes reduces guidance for Q2 & fiscal year
09 Aug '07
3 min read
Charming Shoppes Inc, a leading multi-brand, multi-channel specialty apparel retailer specializing in women's plus-size apparel provided a revised earnings outlook for the second quarter ended August 4, 2007, and the fiscal year ending February 2, 2008. The Company's second quarter results are scheduled for release on Wednesday, August 22, 2007.
Throughout the quarter, the Company has experienced downward trending store traffic levels at each of its brands, with accelerating weakness in July, and as a result, the Company experienced a lower sell-through of spring and summer merchandise. In response, the Company has been more aggressive in clearing seasonal inventory, leading to deeper than planned markdowns and pressure on merchandise margins.
The Company has revised its net sales projections for the second quarter ended August 4, 2007 to approximately $765 million, compared to net sales of $763.4 million for the period ended July 29, 2006. Previously, the Company had revised its projections for second quarter net sales to a range of $785 to $795 million.
The Company's current projections for second quarter net sales include a 3% decrease in consolidated comparable store sales for the Company's Retail Stores segment, compared to a 2% increase in consolidated comparable store sales in the corresponding period of the prior year.
Dorrit J. Bern, Chairman, Chief Executive Officer and President of Charming Shoppes, Inc. commented, "In response to lower than planned performance during our second quarter, we are reducing expenses and managing to lower inventory levels for the second half of the year. Additionally, we have reassessed our capital spending plans, and have decreased our capital budget by approximately $12 - $15 million through the reduction of certain store development and infrastructure projects during the remainder of the year."
marketing@alchempro.com
