CHARLOTTE RUSSE SAGS: Citing disappointing back-to-school sales, teen retailer Charlotte Russe Holding Inc. cut its fourth-quarter earnings estimate by more than half Thursday, which sent shares of the company down 23.4 percent in Nasdaq trading. The company cited the shift of the Labor Day holiday to one week later than last year and a harder-than-expected repositioning of its Rampage chain, which has had double-digit negative same-store sales. As a result, the company provided guidance of a negative low-single-digit same-store sales for the fourth quarter, a big change from its previous estimate of positive mid-single-digit comps. Earnings per share in the quarter are anticipated at 11 cents to 13 cents, down from a previous forecast range of 28 cents to 32 cents. Included in that estimate is a 14 cent-a-share negative impact from the problems at Rampage. The stock was subsequently downgraded by Wachovia Securities and ended Thursday’s session at $11.20, off $3.43.

This story first appeared in the September 13, 2004 issue of WWD. Subscribe Today.