NEW YORK — Charlotte Russe Holding Inc, a specialty retailer focused on younger women, reported a 17.7 percent rise in its third-quarter earnings as cost controls offset weaker sales.
The San Diego-based fashion company said income increased to $5.6 million, or 24 cents a diluted share, for the three months ended June 29, a penny below Wall Street’s expectations. Profits were $4.8 million, or 70 cents, in last year’s third quarter. Total sales ramped up 30 percent to $102 million from $78.4 million, but decreased 0.3 percent on a comparable-store basis.
"While our comp-store sales did not achieve what we anticipated, our merchandise margins were again strong," Bernard Zeichner, chairman and chief executive, said. "The key miss in sales was summer basic, when we moved into warm-weather selling. Our inventory in these departments was well below last year, thus negatively affecting the bottom and topline. For the fourth quarter, we are strategically building inventories over last year to drive the sales."
Harriet?Bailiss-Sustarsic, president and chief merchandise officer, said she was confident in CR’s interpretations for the back-to-school selling season, noting that the peasant and bohemian trends have transitioned into western styling and sleek and sexy men’s wear silhouettes. Key items will be corduroy bottoms, novelty denim, suede, tailored bottoms and sexy knits. In addition, CR has introduced Refuge, a private label jeans now in stores. Pricing will be competitive with the balance of CR’s denim assortment and offerings in a mall. She noted that comp inventory will be up 4 percent heading into the back-to-school.
Looking ahead, CR expects earnings per share to range from 28 to 31 cents for the fourth quarter, based on achieving comp increase in the low-single digits.
Year-to-date, income rose 2 percent to $16.5 million, or 70 cents a diluted share, compared with $16.2 million, or 69 cents. Sales rang up 27.4 percent higher to $300 million from $235.5 million.
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
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