Charming Shoppes posts surprise 2Q loss

BENSALEM, Pa.

Charming Shoppes Inc., the retailer that owns plus-size clothing chain Lane Bryant, said Wednesday that its recorded a surprise second-quarter loss as sales fell, costs climbed and it was forced to mark down its merchandise to clear inventory.

The news sent the company's stock tumbling to a 16-month low.

For the three-month quarter that ended in late July, Charming Shoppes said it lost $8.6 million, or 7 cents per share. That compares to last year's net income of $5 million, or 4 cents per share.

Revenue slipped nearly 2 percent to $517.6 million, down from $527.2 million the previous year, as the company shut 150 stores.

Two analysts surveyed by Thomson Reuters expected Charming Shoppes to earn 6 cents per share, on average.

Still, there was progress. CEO Jim Fogarty said Charming Shoppes posted its first positive increase in an important performance measure during the period.

That figure, called revenue from locations open at least a year, rose 3 percent. It's a key indicator of a retailer's health because it excludes stores that open or close during the year.

Charming Shoppes is based in Bensalem, Pa., and owns more than 2,100 stores under the brands Lane Bryant, Fashion Bug, and Catherines Plus Sizes.

Its shares fell as low as $2.84 in trading Wednesday. But late afternoon the company's stock was down 51 cents, or 15 percent, to $2.86.