Jun 3, 2010
Charming Shoppes first quarter profit matches Wall Street view
Jun 3, 2010
June 3 (Reuters) - Charming Shoppes Inc (CHRS.O) reported a quarterly profit in line with market estimates, as the women's plus-size apparel retailer continued to cut costs to offset lower sales at stores open more than a year. For the first quarter ended May 1, Charming Shoppes earned $3.9 million, or 3 cents a share, compared with a net loss of $6.6 million, or 6 cents a share, a year ago.
Lane Bryant, a Charming Shoppes brand - Photo: www.lanebryant.com
Analysts on average had expected a profit of 3 cents a share, according to Thomson Reuters I/B/E/S.
Net sales fell 6 percent to $504.8 million, marginally higher than analysts' estimates of $503.7 million. Same-store sales fell 2 percent.
But gross margin improved 140 basis points to 54.8 percent of sales, as a result of expense reductions.
Charming Shoppes has been forced to slash costs and close underperforming stores to counter a protracted slump in sales over the past two years.
Shares of the Bensalem, Pennsylvania-based retailer closed at $4.45 Wednesday 2 June on Nasdaq. (Reporting by Viraj Nair in Bangalore; Editing by Don Sebastian)
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