Charlotte Russe Q3 profit slips 5%, misses Street

San Diego Charlotte Russe Holding said late Tuesday its fiscal third-quarter profit fell 5%. The company cited one-time charges, which offset improving sales.

Charlotte Russe earned $6.3 million compared with $6.6 million a year earlier. The company said it took $1.3 million in costs related to putting itself up for sale, management transition and severance.

Revenue rose 5% to $202.7 million, compared with $193.2 million in the same period last year.

Results fell short of Wall Street expectations, although analysts’ expectations usually exclude one-time charges.

Same-store sales slid 3.6% in the quarter.

"Although the environment remains extremely challenging, we believe there is a tremendous opportunity for Charlotte Russe to improve its leadership position in the fast fashion category," CEO John D. Goodman said. "We're continuing to manage the business conservatively by controlling inventories, conserving costs and prudently investing in the resources, talent and systems necessary to help take the Charlotte Russe brand to the next level."

Charlotte Russe, which had been working on turnaround efforts for about a year, opposed a takeover offer by investment firms KarpReilly and H.I.G. Capital last November. Some shareholders complained about that decision, and the company decided to put itself up for sale.