Consolidated comparable store sales for the Company's Retail Stores segment were flat during the three months ended May 5, 2007, compared to a 1% increase during the three months ended April 29, 2006. Net sales for the Company's Direct-to-Consumer segment were $98.4 million during the three months ended May 5, 2007, compared to $107.4 million during the three months ended April 29, 2006, a decrease of 8%.
The decline in sales is primarily attributable to a decline in response rates from the Direct-to-Consumer core customer mailing list.
Under the leadership of Lori Twomey, who was recently appointed President of Crosstown Traders, the Company is further strengthening its Direct-to-Consumer management team. The Company continues its focus on the launch of the Lane Bryant catalog in November 2007, as well as improving the performance of the core apparel group catalogs.
Commenting on the Company's performance, Dorrit J. Bern, Chairman, Chief Executive Officer and President of Charming Shoppes Inc, said, "As has widely been the experience throughout the retail apparel industry, our performance was negatively impacted by unfavorable weather trends during the quarter."
"We had previously stated that we anticipated challenging trends for the first quarter, and in response, we managed inventories well and controlled expenses. As a result, despite these challenges we met our earnings expectations for the quarter. Entering the second quarter, we are well positioned in our seasonal inventory levels, and are confident in the positioning of our fashion offerings."
marketing@alchempro.com
