Charming Shoppes lowers 3Q outlook

BENSALEM, Pa. Charming Shoppes today lowered its outlook for the third quarter ending Nov. 3. The company said it now expects net sales for the quarter to be in the range of $685 million to $690 million, compared to net sales of $695.3 million for the period ended Oct. 28, 2006.

Previously, the company had revised its projections for third quarter net sales to a range of $700 million to $705 million. The company's current projections for third quarter net sales assume a mid- to high- single digit decrease in consolidated comparable-store sales, compared to a 1% increase in consolidated comparable-store sales in the corresponding period of the prior year.

The company said it now expects operate at a break-even level of profitability, compared to obtaining diluted earnings per share of 15 cents for the same period last year. The company had previously projected diluted earnings per share for the quarter to be in the range of 11 cents to 13 cents.

Dorrit Bern, chairman, ceo and president of Charming Shoppes commented, "We are very disappointed with our current operating performance and our customers' early response to our fall merchandise assortments. However, as the leader in women's specialty plus apparel, we remain confident in the continuing growth opportunities in our market, as well as our ability to gain market share and increase our relevance with our consumer, as we have done during the past several years."

For the fiscal year ending Feb. 2, 2008, the company has revised its projections for diluted earnings per share to a range of 45 cents to 50 cents, compared to diluted earnings per share of 81 cents for the corresponding period ended Feb. 3. Previously, the company had projected diluted earnings per share for the fiscal year ending Feb. 2, 2008 in a range of 65 cents 68 cents.