Charming Shoppes Q1 profit surges on cost-cutting
Bensalem, Pa. -- Charming Shoppes said Thursday that its first-quarter net income more than quintupled, but its revenue was flat and the profit rise was driven largely by cost cutting.
The CEO sounded a cautious tone for the future, saying the company needs to reignite store traffic and cope with rising cotton costs.
The company, which operates Lane Bryant, Catherines and Fashion Bug stores, said its net income for February through April was $26 million, up from $3.9 million in the same period last year.
CEO Anthony Romano credited "more fashionable" offerings and an increase in online sales. The company said it also benefited from "aggressive inventory management," and "expense reductions" at Lane Bryant stores. It also sold its Hong Kong office in favor of renting an office there and closed stores.
Same-store sales rose 2%, driven by a 7% increase in sales at Lane Bryant.
Net revenue, which includes all stores, fell 0.1% to $504.4 million. Over the past year, the company closed 139 stores.