Aug 26, 2009
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Charming Shoppes posts second quarter profit below Street view

Aug 26, 2009

Aug 26 (Reuters) - Women's plus-size apparel retailer Charming Shoppes Inc (CHRS.O) reported a quarterly profit that missed market estimates, hurt by a worse-than-expected slump in sales as recession-hit consumers remained reluctant to spend.

Charming Shops
Lane Bryant from Charming Shoppes Inc - Photo: www.lanebryant.com

For the second quarter ended Aug. 1, the company posted a net profit of $4.9 million, or 4 cents a share, compared with a loss of $10.7 million, or 9 cents a share, a year ago.

Net sales for the company, whose brands include Lane Bryant, Fashion Bug and Catherines, fell 19 percent to $527.2 million, while same-store sales fell 14 percent.

Analysts on average were looking for a profit of 7 cents a share, before items, on revenue of $554.8 million, according to Reuters Estimates.

"Results for the quarter continued to reflect a difficult retail environment, delivering both disappointing comparable store sales and earning power," Chief Executive Jim Fogarty said in a statement.

To contend with slumping sales, the company has reduced inventories and undertaken several cost-cutting measures, including laying off workers and store closures.

Shares of the Bensalem, Pennsylvania-based company closed at $5.43 Tuesday 25 August on Nasdaq.

(Reporting by Viraj Nair in Bangalore; Editing by Deepak Kannan)

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