By  on April 27, 2007

Specialty retailer Charlotte Russe Holding Inc. reported on Thursday an upswing in second-quarter earnings after recording a loss in the comparable year-ago period.

For the three months ended March 31, earnings reached $3.8 million, or 15 cents a diluted share, which compares with a loss of $12.1 million, or 49 cents a share, in the year-ago period. The year-ago results reflected $2 million of net income associated with adjustments to gift card liabilities and the addition of the post-Christmas sales week. Sales at the mall-based retailer rose 4.8 percent in the quarter, to $161.1 million from $153.7 million in the prior year, while total same-store sales gained 4.8 percent.

For the six months, earnings jumped to $17.7 million, or 70 cents a diluted share, which compares with a loss of $5 million, or 20 cents, a share last year. Sales climbed 11.5 percent, to $370.3 million from $332.2 million.

"During the second quarter, our fashion and trend-right spring assortments presented coordinated colors across apparel and accessory categories," Mark Hoffman, chief executive officer, said in a statement. "The strong customer response builds our confidence in the spring season selling. With our fashion content on target and new receipts arriving at stores, I believe we are well positioned for the balance of the third quarter."

The retailer said it expected third-quarter earnings in the range of 41 cents to 44 cents a diluted share.

Charlotte Russe, which has 395 stores in the U.S. and Puerto Rico, plans to open at least 50 units during the year.

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