Charming Shoppes Q3 beats market; shares surge
today Nov 25, 2008
* Posts narrower-than-expected Q3 loss
* Sees 100 additional store closings in 2010
* Cost savings expected to be $100 mln to $125 mln
* Sees Q4 loss of $0.32-$0.38/shr
* Shares jump 92 pct
Nov 25 (Reuters) - Charming Shoppes Inc , a retailer of women's plus-size apparel, posted a quarterly loss that was narrower than market estimates, helped by higher sales and margin in October, and forecast fourth-quarter revenue above market view, sending its shares up as much as 92 percent.
Charming Shoppes Inc - Lane Bryant
However, the retailer forecast a wider fourth-quarter loss and said consolidated comparable store sales are expected to fall in the low double digits for its retail stores segment compared with a 9 percent fall a year ago.
The company also said it plans to discontinue its Lane Bryant Woman catalog, sees savings of $100 million to $125 million from its restructuring plan and expects to additionally close about 100 stores in 2010.
As of Nov. 1, Charming Shoppes operated 2,344 retail stores in 48 states.
"We are strengthening our balance sheet and liquidity by reducing inventories and spending, and further rationalizing our store base," said Alan Rosskamm, its interim CEO.
Shares of the Bensalem, Pennsylvania-based company pared some of their early gains and were up 57 cents at $1.77 in morning trade on Nasdaq. The shares had touched their lowest in 28 years of 57 cents on Nov. 19.
For the alerts, please double click and for the company news release, please click . (Reporting by Shivani Singh in Bangalore; Editing by Gopakumar Warrier)
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