Charming Shoppes Q1 profit drops 31.7%

Bensalem, Pa. -- Charming Shoppes reported Friday that net income for the first quarter plummeted 31.7% to $17.8 million, from $26 million in the year-ago period.

Sales dropped 4.6% to $481.3 million, largely due to the shuttering of 157 stores. E-commerce was a strength in the quarter, up 18% over the prior-year period.

Same-store sales were flat in the first quarter, including a 1% comparable-store sales increase for Lane Bryant, a 5% comparable-store sales increase for Catherines, and a 3% comparable-store sales decrease for Fashion Bug.

“Our gross margins continued to be impacted by increases in product costs compared to a year ago,” said Anthony M. Romano, president and CEO, Charming Shoppes. “We also executed deeper discounts to ensure seasonal unit sell-throughs as we experienced continuing challenging traffic trends.”