Charming Shoppes

Charming Shoppes Inc. (Bensalem, Pa.) reported a 45 percent decrease in net income for the fourth quarter ended Jan. 29, 2005. Net sales for the quarter were up less than .01 percent and same-store sales decreased 2 percent.

For the full fiscal year, net income was up 65 percent, net sales increased 2 percent and same-store sales increased 1 percent.

During the year, the company reported experiencing “solid progress” in the improvement of its Lane Bryant brand, including strong increases in both the gross margin and operating margin for that division.

“I am very pleased with the excellent progress we made during 2004, increasing net income by 65 percent, driven by gross margin expansion of 160 basis points,” said president, chairman and ceo Dorrit Bern. “Much of our success is attributable to the strong operating margin improvement at our Lane Bryant brand. Inventory management at each of our brands was well executed, resulting in a decrease in inventory of $25 million, while at the same time driving positive comparable store sales for the corporation during the year. Achieving this goal has allowed us to utilize our working capital more effectively. As a result, we strengthened our balance sheet, generating strong cash flows. This was all achieved despite the difficult environment we experienced during the fourth quarter.”

As of the end of the year, Charming Shoppes Inc. operated 2221 stores in 48 states under the Lane Bryant, Fashion Bug, Fashion Bug Plus and Catherines Plus Sizes nameplates. During the 12 months, the specialty retailer opened 51 stores, relocated 47 and closed 57 stores.