Charming Shoppes Q1 net sales down slightly

BENSALEM, Pa.— Charming Shoppes reported that consolidated net sales for the first quarter ended April 30 were $504.4 million, compared with $504.8 million for the three months ended May 1, 2010. Net sales results included a 2% increase in comparable-store sales and an increase in e-commerce sales, offset by the impact of operating 139 (or 7%) fewer stores than in the year-ago period. E-commerce sales increased to $36.6 million in the first quarter, compared with $31.6 million in the year-ago period.

Commenting on the quarter, Anthony Romano, president and CEO of Charming Shoppes, said, "We are pleased to report year-over-year operating improvement in our first quarter, which was driven by a more fashionable apparel assortment and aggressive inventory management across all of our brands. Our 2% increase in consolidated comparable-store sales was driven by a 7% comparable-store sales increase at Lane Bryant, and sales through our e-commerce channel increased 16% for the quarter.

Net income on a GAAP basis was $26 million, 5.2% of sales, or 22 cents per diluted share for the first quarter, compared with net income on a GAAP basis of $3.9 million, 0.8% of sales, or 3 cents per diluted share in the first quarter of the prior year.

On a non-GAAP basis, net income per diluted share was 17 cents for the first quarter, compared with net income per diluted share of 4 cents in the first quarter of the prior year.