CHARLOTTE RUSSE PROFITS UP 79% IN THIRD QUARTER
NEW YORK — Profits at Charlotte Russe Holding vaulted 79.1 percent in the third quarter ended June 24 on a 31.4 percent sales gain.
The junior chain, which operates stores under the Charlotte Russe and Rampage names, earned $4.4 million, or 19 cents a share, up from $2.4 million, or 11 cents a share, a year ago. Sales reached $58.7 million, up from $44.7 million, with same-store sales inching up 0.6 percent.
Chairman and chief executive Bernard Zeichner said third-quarter results “highlight the consistency of our steady sales increases, strong contributions from new stores as they have ramped up quickly, and continued leveraging of our general and administrative expenses as these costs are spread across a growing number of stores.”
The firm ended the quarter with 123 units, a 45 percent increase over last year. It added stores during the quarter in Nashville, Pittsburgh and Washington, and entered Puerto Rico. They plan between nine and 11 openings in the current quarter.
“We remain confident that the new stores will continue to deliver about a 90 percent cash-flow return on investment during their first full year of operations,” Zeichner said. Inventories at the quarter’s end were up 13 percent on a comparable store basis, but, he said, “we are comfortable with our current inventory position and look forward to a strong back-to-school season.”
In the nine months, earnings climbed 68.2 percent to $11.5 million, or 51 cents a share, from $6.9 million, or 32 cents a share, a year ago. Sales climbed 33.6 percent to $168.9 million from $126.4 million.