Charlotte Russe

Charlotte Russe Holding Inc. (San Diego) reported a 0.5 percent increase in net sales for its first quarter of 2005 ending Dec. 25, 2004. Same-store sales decreased 9.9 percent and operating income decreased 76 percent.

“The holiday season proved to be a challenge for both of our chains this year,” said ceo Mark Hoffman. “While we experienced some encouraging reads on the fall assortments in October, we did not achieve the expected momentum as the selling season progressed due to our fashion misses and weakness in the junior sector. As seen in today’s announcement, we were able to achieve the lower end of the sales and earnings guidance provided on December 9.

“While Charlotte Russe stores had posted positive comp store sales every month since January 2004, we were very disappointed by the shift to negative comps during the most recent quarter,” Hoffman continued. “Meanwhile, the Rampage brand continued to execute its repositioning to reflect more elevated assortments; however, these stores have yet to achieve meaningful improvement from the negative mid-20 percent comp-store sales encountered during the fourth quarter of fiscal 2004.”

The mall-based specialty apparel and accessories retailer targeting young women in their teens and twenties opened eight stores during the first quarter (against the previously announced goal of up to 60 stores for the fiscal year ending in September 2005). After reviewing the schedule of new-store openings, the retailer said it now expects to open up to 50 stores this year.