NEW YORK — Shares of Charming Shoppes Inc. dived 19.1 percent Tuesday as the plus-size specialty retailer warned its third-quarter results would fall short of Wall Street’s expectations and reported September same-store sales declined 6...
NEW YORK — Shares of Charming Shoppes Inc. dived 19.1 percent Tuesday as the plus-size specialty retailer warned its third-quarter results would fall short of Wall Street’s expectations and reported September same-store sales declined 6 percent.
The Bensalem, Pa.-based operator of 2,338 stores cited inventory problems and double-digit sales declines at Lane Bryant during the month for its downward revision, which transformed expectations of 3 cents a share for the quarter into a break-even outlook. The full-year earnings-per-share projection was adjusted accordingly without a change in fourth-quarter expectations.
Acting on their displeasure, investors sent CS shares down $1.02 to $4.33 in Nasdaq trading, 53.5 percent off its 52-week high of $9.14, reached April 11. Shares drifted as low as $3.86 during the day, establishing a new 52-week low.
For the day, the overall market snapped a four-day losing streak as the Dow Jones Industrial Average closed up 78.65 points, or 1.1 percent, to 7,501.49 and the Standard and Poor’s Retail Index rose 11.86, or 4.7 percent, to 265.54. Spurred by buying opportunities created through weeks of price erosion and optimism about a possible end to the Pacific dock strike, specialty stores, department stores, discounters and off-price retailers alike experienced beefy run-ups in their stock prices.
Other retailers failing to capitalize on the day’s retail bounce-back included Delia’s, off 10 cents, or 20 percent, to 40 cents, and United Retail, down 27 cents, or 5.7 percent, to $4.43. Sears, which saw its shares plunge 14.3 percent on Monday, as reported, weathered another 1.5 percent drop, closing at $31.77.
In a far more upbeat report on September results, Mothers Work Inc., a retailer of maternity apparel, said its comps rose 2.6 percent, despite having one fewer Saturday in the latest month. The Philadelphia-based retailer said having four Saturdays instead of five reduced comps by about 4 percent. On a combined basis for August and September, in which there were nine Saturdays this year and last year, MW delivered a comp increase of 5.6 percent.
Charming Shoppes, however, said it now expects to report break-even results in the third quarter, 3 cents off of consensus estimates. It also lowered comparable-store sales guidance to a low-single-digit decline from low-single-digit growth. Earnings for the fourth quarter were reaffirmed with "tempered caution" at 8 cents, and include comp expectations of a low-single-digit advance. For the full year, earnings are expected to range between 40 and 42 cents a share, as compared with 19 cents in 2002, exclusive of a pretax restructuring charge.Lower customer traffic and insufficient inventory levels in certain key items made Lane Bryant’s month go from fair to worse, the firm said.
"Sales performance during the first three weeks of September trended to a flat sales comp for the corporation, slightly below our projections for the month," Dorrit J. Bern, chief executive officer, said in a statement. "The last two weeks of the month were extremely disappointing, as we experienced double-digit decreases, primarily at our mall-based Lane Bryant stores, where there was a decrease in customer traffic from last year."
In response, Bern said CS will increase its advertising efforts as well as maintain a tighter control on selling and administrative costs through the rest of the year.
By division, comps declined 14 percent at LB and 2 percent at Fashion Bug stores, offsetting a 3 percent increase at Catherines stores.
Mothers Work, which operates 909 maternity locations under the nameplates Motherhood Maternity, A Pea in the Pod and Mimi Maternity, also said net sales for the month rose 16.5 percent to $38.5 million from $33 million. For the fourth quarter ended Sept. 30, comps rose 6 percent and net sales increased 20.1 percent to $111.2 million from $92.6 million in the same period last year.
Rebecca Matthias, president and chief operating officer, said in a statement: "We continue to realize meaningful gross margin increases over last year, primarily due to our success at reducing product costs through our aggressive sourcing initiatives." In addition, she noted inventory management has enabled the retailer to maintain an overall inventory level only slightly higher than last September, while delivering a 20 percent sales increase for the fourth quarter and providing stock for 138 additional locations since September.
She also said since June, MW routed all ocean shipments to East Coast ports to reduce potential impact on deliveries of the labor disruptions at West Coast ports.
“What he has done at Vuitton is really exceptional,” said @gameofthrones’ actress Gwendoline Christie on @mrkimjones’ final show for @louisvuitton. “He has rebooted luxury in terms of making it commercial, viable and contemporary. And most importantly artistic. He has never compromised his artistic vision for the sake of commodity.” (📷: @zefashioninsider)
After seeing a demand for men’s wear from its customers, British contemporary women’s wear label @ariesarise has added a men’s wear component and will launch a unisex collection with @mrporterlive. The 20-piece collection includes jackets, denim, logo T-shirts and more with deconstructed ‘90s vibes. Set to launch on January 18, you can shop the pieces on Aries’ website and on mrporter.com. #wwdfashion
“And so spending so much time with a character who thinks like that, inevitability you try and analyze yourself and go back and think about your own demons and dark chapters that you had in your life,” says @thedanielbruhl of his role in TNT’s “The Alienist.” The show, set in the Gilded Age of New York, also stars Dakota Fanning and Luke Evans. Head to WWD.com to read about how 39-year-old Brühl prepared for the role and why he thinks the show is so relevant to today #wwdeye ( 📷: @Eriktanner)
Now that Celine Dion’s collection has topped $10 million in sales, the pop superstar, fashion icon and newly-minted industry player is eyeing growth in Asia. Read the full report by @tiffanyap, link in bio. #wwdnews #celinedion
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
Among the familiar faces at @off____white’s show was a surprise figure: Japanese artist @takashipom, pictured here on Wednesday morning. Other show-goers included @jerrylorenzo, who spoke about his upcoming project: a @nike collaboration for back to school, with designs inspired by his childhood on the West Coast. Sitting in the front row were Future, Don Crawley, @miguel and more. See the rest of the photos on WWD.com #wwdeye (📷: Stephane Feugere)
According to @laurentsai, former “Terrace House: Aloha State” cast member, she didn’t know she was auditioning for the Japanese version of “Real World.” “I was telling a couple of my friends and someone’s like, ‘That sounds a lot like Terrace House.’ I was like, ’No it can’t be.’” Turns out, it was. But Tsai isn’t just a reality star — she’s an illustrator who has worked with Starbucks Japan and most recently, she’s dipping her toes into the fashion world. Head to WWD.com to read about her time on the show, modeling and her art. #wwdeye (📷: @danieldorsa)
More changes are coming to New York Fashion Week: Beginning with the spring 2019 collection, @alexanderwangny will move his New York show to June from September, adopting a biannual schedule with collections shown in June and December. Additionally, the @cfda is planning for an official summer/winter fashion season taking place as soon as June and December 2018. Read more about the upcoming changes on WWD.com. #wwdnews #wwdfashion (📷: @slovekinpics)