Catalog Sales Depress Charming Shoppes’ Quarter
Charming Shoppes Inc., a multi-brand retailer that specializes in women’s apparel, generated second-quarter net income of $18.3 million, down from second-quarter 2006 net income of $32.6 million. The company’s revenue was $770.9 million, compared with $763.4 million a year ago. The quarter ended Aug. 4.
The sales figures for the most recent quarter include 76 new Lane Bryant Outlet stores, which were opened during second-quarter 2006, a quarter that only partly benefited from sales within these new locations.
During the most recent quarter, Charming Shoppes recorded lower sales from its apparel-related catalogs than it had in quarters past. Net sales within the company’s direct-to-consumer segment were $81.7 million, compared to $92.3 million in second-quarter 2006.
The company has taken steps to turn this around. “We continue to make progress in strengthening and supporting our direct-to-consumer management team, which is resulting in improved visual creative and merchandise offerings for a number of our fall catalog titles,” Dorrit J. Bern, the company’s chairman, CEO and president said in a statement.
Bern continued, “We expect these changes to lead to a moderation of our down-trending catalog sales results for the second half of this year.”
