Charlotte Russe Holding Inc. (San Diego) announced a 6.9 percent net sales increase for its second quarter ending March 26, 2005. Same-store sales decreased 3.1 percent during the quarter.
“Our second quarter sales were generally in line with the guidance provided in January despite the late receipt flow of inventory in the back half of February and March,” said ceo Mark Hoffman. “We made last-minute adjustments to our assortments after the fashion miss this past holiday season. As we expected when guidance was issued in January, the second quarter benefited from the fiscal calendar shift of Easter.
“At the Charlotte Russe stores, we successfully transitioned out of the prior season goods early in the quarter,” Hoffman continued. “However, we would have hoped for stronger selling during March given the earlier Easter this year. Regarding Rampage, I am encouraged by some signs of improving trends at the end of the quarter. While the brand continued to run negative comps during the second quarter, about one-third of the stores posted positive comps during the month of March. This continues my cautious confidence that the brand will achieve flat to slightly positive comps during the month of June 2005.”
Charlotte Russe is a mall-based specialty retailer of fashionable, value-priced apparel and accessories targeting young women in their teens and twenties. At quarter’s end, it was operating 372 stores in 39 states and Puerto Rico — 305 Charlotte Russe stores and 67 Rampage stores. Twelve new stores were opened during the first half of fiscal 2005, and the company expects to open up to 50 new stores during the fiscal year ending in September 2005.