Charming Shoppes cuts 3Q, 4Q outlook

BENSALEM, Pa. Charming Shoppes announced that it has revised its third and fourth quarter outlook to reflect the challenging economic environment.

Alan Rosskamm, interim ceo and chairman of the board of Charming Shoppes commented on the company's announcement. "We are today announcing a material revision to our sales and earnings outlook for the balance of this fiscal year, as a result of a series of decisive actions we are taking in response to the increasingly challenging environment in which we are currently operating. Third quarter-to-date, we are experiencing sales performance which is considerably lower than planned. These difficult trends worsened in September, with accelerating weakness in consumer demand during this deteriorating economy.

For the third quarter ending Nov.1, the company has updated its projection for a diluted loss per share from continuing operations in the range of 35 cents to 37 cents, compared to diluted loss per share from continuing operations of 1 cent for the corresponding period ended Nov. 3, 2007. The company's projection for the third quarter assumes net sales from continuing operations in the range of $535 to $545 million, compared to net sales from continuing operations of $599.7 million for the period ended Nov. 3, 2007. The company's projection assumes a continuation of current selling trends, resulting in decreases in consolidated comparable-store sales in the low double digits for the company's retail stores segment, compared to an 8% decrease in consolidated comparable-store sales in the prior year. Previously, the company had projected a diluted loss per share from continuing operations in the range of 9 cents to 11 cents.

For the fourth quarter ending Jan. 31, 2009, the company anticipates a comparable to slightly greater diluted loss per share from continuing operations, as compared to the corresponding period ended Feb. 2. This projection assumes a continuation of current sales trends, resulting in decreases in consolidated comparable-store sales in the low double digits for the company's retail stores segment, compared to a 9% decrease in consolidated comparable-store sales in the corresponding period of the prior year. The company had previously anticipated narrowing its diluted loss per share from continuing operations for the fourth quarter ending Jan. 31, 2009, as compared to the corresponding period ended Feb. 2.