BENSALEM, Pa., June 25 /PRNewswire-FirstCall/ -- Charming Shoppes,
Inc., (Nasdaq: CHRS), a leading multi-brand, multi-channel specialty
apparel retailer specializing in women's plus-size apparel, today announced
executive management changes. Additionally, the Company has announced a
revision to second quarter and fiscal year 2008 earnings guidance.
LuAnn Via has been promoted to Group Divisional President, with
leadership responsibility for the Lane Bryant and Cacique brands, reporting
to Dorrit J. Bern, Chairman, CEO and President of Charming Shoppes, Inc.
Via succeeds Lorna Nagler, who was President of Lane Bryant since 2004, and
who has left the Company to pursue other career interests. Previously, Via
served Charming Shoppes, Inc. as the President of the Company's Catherines
brand, since January 2006. In her new role, Via will be responsible for
strategic oversight and operational performance for both the Lane Bryant
retail brand and its Cacique intimate apparel business, including
merchandising, marketing, stores, and operations. Via will be based at Lane
Bryant's Columbus, Ohio headquarters. Charming Shoppes has initiated an
immediate search for a President of Catherines, and during the interim
period Dorrit J. Bern will assume leadership responsibility for the
Catherines brand.
Prior to joining Charming Shoppes, Via's retail career has spanned more
than 30 years, and has included extensive experience in senior leadership,
merchandising and product development for companies such as Sears, Roebuck
& Co., where she served in the positions of Vice President and General
Merchandise Manager, Saks Incorporated and Rich's (a former division of
Federated Department Stores, which now operates as Macy's South).
Commenting on Via's appointment, Dorrit J. Bern said, "Having joined
Charming Shoppes in January 2006 as President of Catherines, LuAnn has
exhibited strong leadership and merchandising capabilities, and has had
great success in driving the brand's financial performance. In the past
year and a half, LuAnn has proven to possess a keen eye for identifying
growth opportunities, as well as the drive and creativity to capitalize on
them. Given her understanding of our customer, her strong and
differentiating sense of fashion, and her extensive expertise in intimate
apparel, I expect Lane Bryant to benefit from the leadership and vision
that LuAnn will provide."
Additionally, the Company today announced a revision to its earnings
guidance. For the second quarter ending August 4, 2007, the Company has
revised its projections for diluted earnings per share to a range of $0.18
- $0.20, compared to diluted earnings per share of $0.24 for the
corresponding period ended July 29, 2006. Previously, the Company had
projected earnings per share for the second quarter ending August 4, 2007
in a range of $0.25 - $0.27. The revised projection represents a 3% - 4%
increase in net sales in a range of $785 to $795 million, compared to net
sales of $763.4 million for the period ended July 29, 2006. This projection
assumes flat to low single-digit percentage decreases in consolidated
comparable store sales for the Company's Retail Stores segment, compared to
a 2% consolidated comparable store sales increase in the corresponding
period of the prior year.
The company's revision to second quarter earnings guidance is primarily
driven by lower than planned sales, as a result of decreased traffic to
each of the Company's retail store brands, and an increase in markdowns of
spring merchandise as compared to plan. Commenting on today's announcement,
Bern said, "As we enter the fall selling season, we are confident that we
have sufficiently improved our merchandise assortments in each of our
retail brands to be better positioned to achieve our sales and gross margin
plans for the second half of this year. We are launching exciting new
product and marketing initiatives this fall season at Lane Bryant and
Fashion Bug. Lane Bryant will benefit from our comprehensive sizing study,
which we believe is one of the most extensive studies ever conducted by a
major retailer. Our marketing campaign, "Right Fit by Lane Bryant(TM)",
will commence in August and support our launch of our new core denim and
career pant assortments using this new fit technology. Also, as previously
announced, our Fashion Bug brand has signed a licensing agreement for the
exclusive use of the Gitano(R) brand name, with product arriving at our
stores during the third quarter, including fashionable casual merchandise
offerings in Plus and Misses Sportswear, as well as in Footwear."
For the fiscal year ending February 2, 2008, the Company has revised
its projections for diluted earnings per share to a range of $0.80 - $0.82,
compared to diluted earnings per share of $0.81 for the corresponding
period ended February 3, 2007. Previously, the Company had projected
earnings per share for the fiscal year ending February 2, 2008 in a range
of $0.86 - $0.90. The revised projection represents a 3% - 4% increase in
net sales in a range of $3.15 to $3.20 billion, compared to net sales of
$3.07 billion for the period ended February 3, 2007. This projection
assumes flat to low single- digit percentage increases in consolidated
comparable store sales for the Company's Retail Stores segment, compared to
a 1% consolidated comparable store sales increase in the prior year. The
Company's Fiscal Year 2008 projection includes an initial investment of
approximately $10 million pretax ($6.4 million after tax, or $0.05 per
diluted share) related to the launch of the Lane Bryant catalog during the
fourth quarter of Fiscal Year 2008.
Bern added, "We have recently completed the repurchase of 10.3 million
shares of our common stock, and have announced plans to repurchase
additional shares valued at $80 - $100 million, either in the open market
or in negotiated transactions. We currently plan to complete the share
repurchase program at the higher end of the $80 - $100 million range. Our
commitment to take full advantage of our share repurchase program reflects
our strong balance sheet, and our confidence in our growth strategies."
Charming Shoppes, Inc. operates 2,409 retail stores in 48 states under
the names LANE BRYANT(R), FASHION BUG(R), FASHION BUG PLUS(R), CATHERINES
PLUS SIZES(R), LANE BRYANT OUTLET(TM), and PETITE SOPHISTICATE OUTLET(TM).
Additionally, apparel, accessories, footwear and gift catalogs, including
the following titles, are operated by Charming Shoppes' Crosstown Traders:
Old Pueblo Traders, Bedford Fair, Willow Ridge, Lew Magram, Brownstone
Studio, Regalia, Intimate Appeal, Monterey Bay Clothing Company, Coward
Shoe and Figi's.
This release contains certain forward-looking statements concerning the
Company's operations, performance, financial condition, and details of
executive management changes. Such forward-looking statements are subject
to various risks and uncertainties that could cause actual results to
differ materially from those indicated. Such risks and uncertainties may
include, but are not limited to: the failure to implement the Company's
business plan for increased profitability and growth in the Company's
retail stores and direct- to-consumer segments, the failure to successfully
implement the Company's expansion of Cacique through new store formats, the
failure of changes in management to achieve improvement in the Company's
competitive position, the failure to successfully implement the Company's
integration of operations of, and the business plan for, Crosstown Traders,
Inc., adverse changes in costs vital to catalog operations, such as
postage, paper and acquisition of prospects, declining response rates to
catalog offerings, failure to maintain efficient and uninterrupted
order-taking and fulfillment in our direct-to- consumer business, changes
in or miscalculation of fashion trends, extreme or unseasonable weather
conditions, economic downturns, escalation of energy costs, a weakness in
overall consumer demand, failure to find suitable store locations,
increases in wage rates, the ability to hire and train associates, trade
and security restrictions and political or financial instability in
countries where goods are manufactured, the interruption of merchandise
flow from the Company's centralized distribution facilities, competitive
pressures, and the adverse effects of natural disasters, war, acts of
terrorism or threats of either, or other armed conflict, on the United
States and international economies. These, and other risks and
uncertainties, are detailed in the Company's filings with the Securities
and Exchange Commission, including the Company's Annual Report on Form 10-K
for the fiscal year ended February 3, 2007 and other Company filings with
the Securities and Exchange Commission. Charming Shoppes assumes no duty to
update or revise its forward- looking statements even if experience or
future changes make it clear that any projected results expressed or
implied therein will not be realized.
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