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Charming Shoppes' 4Q Loss Narrower Than Views

The Associated Press

BENSALEM, Pa. (AP) — Women's apparel retailer Charming Shoppes Inc. on Wednesday reported a narrower loss from continuing operations in its fourth quarter than Wall Street expected, but sales at established stores dropped sharply.

For the quarter ended Jan. 31, the company — which operates Lane Bryant, Fashion Bug and Catherines — posted a net loss of $108.5 million, or 94 cents per share, compared with a net loss of $124.4 million, or $1.07 per share, a year earlier. Last year's results included discontinued operations that inflated the company's loss. Excluding those, the company reported a loss of 39 cents per share.

Excluding goodwill, store impairment and restructuring charges, the Bensalem, Pa, company said it had a loss of 34 cents per share for the 2008 fourth quarter.

Analysts polled by Thomson Reuters expected a loss of 38 cents per share for the quarter. Analyst estimates typically exclude one-time charges and gains.

Revenue fell 14 percent to $631.9 million from $731.8 million. Analysts predicted revenue of $639 million.

Same-store sales, or sales at stores open at least a year, for all of the company's chains — including Lane Bryant and Fashion Bug — fell 15 percent during the quarter.

For the year, the company reported a loss of $244.2 million, or $2.13 per share, compared with a loss of $83.4 million, or 68 cents per share, in the prior year.

Revenue fell to $2.47 billion from $2.72 billion.

Charming Shoppes also said it will likely report a loss between 9 cents per share and 13 cents per share including special items — or a loss of between 3 cents per share and 7 cents per share excluding charges and gains — in its first quarter ending May 2. Analysts anticipate a loss of 6 cents per share for the period.

The company's shares fell 2 cents to $1.17 in morning trading.