Charming Shoppes Reports Fourth Quarter
BENSALEM, Pa., March 11, 1997 - Charming Shoppes, Inc. (Nasdaq: CHRS), the retail apparel chain,
today reported net income and sales for the Fourth Quarter ended February 1, 1997.
For the three months ended February 1, 1997, the Company had net income of $2,221,000 or $.02 per share.
This compares to a net loss of $107,032,000 or $1.04 per share during the corresponding period last year. The
prior year's loss included an after tax restructuring charge of $70,000,000 or $.68 per share. Fourth Quarter
sales were $269,797,000 as against sales of $321,822,000 during the prior year. Comparable store sales
increased two and one half percent during the quarter. The Fourth Quarter included thirteen weeks as
compared to fourteen weeks during the prior year.
For the twelve months ended February 1, 1997, the Company had a net loss of $7,237,000 or $.07 per share.
This compares to a net loss of $139,241,000 or $1.35 per share for the corresponding period last year. Sales
for the twelve months were $1,016,297,000 as against $1,102,384,000 during the prior year. The Company's
comparable store sales for the year increased four and one half percent. The current year included fifty two
weeks as compared to fifty three weeks in the prior year. The decrease in sales was primarily attributable to a
net decrease in the number of stores in operation. At the end of the year, the Company was operating 1,134
stores as compared to 1,301 in 1996.
The results of operations for the year ended February 1, 1997, resulted in a decrease in the pre-tax loss from
operations of approximately $102,000,000, excluding the above restructuring charge, as compared to the prior
year. This was accomplished through changes in the Company's merchandising, marketing and sourcing
strategies as well as significant expense reductions in the operating stores, corporate headquarters and
distribution centers. During the past fourteen months the Company closed 294 underperforming stores as part of
a major restructuring which was announced during the fourth quarter of the prior fiscal year.
During 1996 Charming Shoppes opened 5 stores and closed 172, ending the year with 1,134 stores in 43
states. The Company ended the year with 10,650,000 square feet of leased space. Charming Shoppes operates
under the names "Fashion Bug" and "Fashion Bug Plus."
CHARMING SHOPPES,
INC.
(In thousands except shares and
per share amounts)
4th Quarter
4th
Quarter
Ended
Ended
February 1,
February 3,
Percent 1997
Percent 1996
Percent
Change (13 weeks)
of Sales (14
weeks)
of Sales
Net Income (Loss)
Per Share --- $0.02
--- ($1.04)
---
Net Sales (16.2)% $269,797
100.0% $321,822
100.0%
Other Income 241.2 2,931
1.1 859
0.3
Total Revenue (15.5) 272,728
101.1 322,681
100.3
Cost of Goods
Sold, Buying
and Occupancy (30.3) 205,767
76.3 295,075
91.7
Selling, General and
Administrative(28.4) 61,486
22.8 85,849
26.7
Restructuring
Charge (100.0) 0
0.0 103,000
32.0
Interest Expense 10.3 2,439
0.9 2,211
0.7
Total Expenses(44.5) 269,692
100.0 486,135
151.1
Income (Loss) Before
Income Taxes (101.9) 3,036
1.1 (163,454)
(50.8)
Less Income Tax
Provision
(Benefit) (101.4) 815
0.3 (56,422)
(17.5)
Net Income
(Loss) (102.1)% $2,221
0.8% ($107,032)
(33.3)%
Weighted Average
Number of Common
Shares --- 106,756,169
--- 103,162,169
---
(In thousands except shares and
per share amounts)
Fiscal Year
Fiscal
Year
Ended
Ended
February 1,
February 3,
Percent 1997
Percent 1996
Percent
Change (52 weeks)
of Sales (53 weeks)
of Sales
Net Loss
Per Share --- ($0.07)
--- ($1.35)
---
Net Sales (7.8)% $1,016,297
100.0% $1,102,384
100.0%
Other Income 32.0 7,464
0.7 5,655
0.5
Total Revenue (7.6) 1,023,761
100.7 1,108,039
100.5
Cost of Goods Sold,
Buying
and Occupancy (14.7) 782,671
77.0 917,064
83.3
Selling, General and
Administrative(19.3) 241,431
23.8 299,297
27.1
Restructuring
Charge (100.0) 0
0.0 103,000
9.3
Interest Expense161.3 9,579
0.9 3,666
0.3
Total Expenses(21.9) 1,033,681
101.7 1,323,027
120.0
Loss Before
Income Taxes (95.4) (9,920)
(1.0) (214,988)
(19.5)
Less Income
Tax Benefit (96.5) (2,683)
(0.3) (75,747)
(6.9)
Net Loss (94.8)% ($7,237)
(0.7)% ($139,241)
(12.6)%
Weighted Average
Number of
Common Shares --- 105,649,093
--- 103,038,224
---
SOURCE Charming Shoppes, Inc./CONTACT: Bernard Brodsky, Vice President & Treasurer of Charming
Shoppes, 215-638-6719/