Charming Shoppes swings to profit below Street view

Bensalem, Pa. Charming Shoppes reversed a prior-year loss in the second quarter, but its results missed market estimates, hurt by a worse-than-expected slump in sales.

For the second quarter ended Aug. 1, the company posted a net profit of $4.9 million, compared with a loss of $10.7 million a year ago.

Net sales for the company, whose brands include Lane Bryant, Fashion Bug and Catherines, fell 19% to $527.2 million. Same-store sales fell 14%.

In April, Charming Shoppes appointed turnaround specialist James Fogarty as president and chief executive after longtime CEO Dorrit Bern resigned. In a statement, Fogarty said: “Results for the quarter continued to reflect a difficult retail environment, delivering both disappointing comparable-store sales and earning power.”

To contend with slumping sales, the company has reduced inventories and undertaken several cost-cutting measures, including laying off workers and store closures.