Charming Shoppes Swings to 2Q Loss, Sales Slip
Bensalem, Pa. Charming Shoppes Inc. said Wednesday it swung to a fiscal second-quarter loss as it faced a weak retail environment and hefty one-time costs.
Charming Shoppes said for the quarter ended Aug. 2 it lost $8.3 million compared with a profit of $18.3 million in the same quarter last year.
The company posted a loss from continuing operations of $3.7 million. Included in those results was an after-tax charge of $5.8 million related to the severance package for its former CEO Dorrit J. Bern, who stepped down last month after a bitter proxy fight.
Charming Shoppes also said it took a charge of $3.5 million during the quarter from consolidation and streamlining efforts.
Sales fell 6.6% to $648.6 million from $694.4 million.