Wednesday, women's specialty apparel retailer Charming Shoppes Inc. (CHRS) reported a narrower net loss for the first quarter. Loss from continuing operations, however, widened from the previous year, while beating analysts' expectations.
The Bensalem, Pennsylvania-based company's net loss for the first quarter narrowed to $6.60 million or $0.06 per share from $47.00 million or $0.41 per share in the prior - year quarter.
The company, however, reported a first-quarter loss from continuing operations of $6.60 million or $0.06 per share, wider than a net loss of $0.95 million or $0.01 per share last year. Loss from continuing operations for the quarter included net charges of $0.07 per share related to restructuring charges, a gain on the repurchase of notes, and non-cash interest related to the adoption of FSP APB 14-1.
On average, Three analysts polled by Thomson Reuters expected the company to report a loss of $0.07 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter dropped 16.1% to $538.14 million from $641.35 million last year, primarily as a result of a comparable-store sales decrease of 13% and the impact to sales from 162 store closings during the last four quarters.
Comparable-store sales declined 15%, 13% and 9% at Lane Bryant, Fashion Bug and Catherines brands, respectively.
Loss from operations for the quarter was $1.3 million, compared to income from operations of $3.8 million in the year-ago quarter. Excluding charges, income from operations for the quarter was $7.4 million, flat with last year.
Gross profit margin for the quarter edged up to 30.8% from 30.3% last year. The company's merchandise margin improved by 190 basis points, related to lean inventories and reduced promotional activity, particularly at Lane Bryant and Catherines brands.
Jim Fogarty, President and Chief Executive Officer, Charming Shoppes Inc., said, "While our performance for the first quarter reflected a difficult retail environment and did exceed our earnings guidance, our results were nevertheless disappointing. Our results reflect comparable store sales performance that was not on par with other retailers, and a disappointing level of earning power for our brands."
CHRS is currently trading at $3.71, up $0.13 or 3.63%, on a volume of 0.22 million shares on the Nasdaq.
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