Charming Shoppes Inc. (Bensalem, Pa.) announced an exclusive licensing agreement with Wrangler Apparel Corp. (Wilmington, Del.), a subsidiary of V.F. Corp. (Greensboro, N.C.), to sell Gitano branded merchandise in its Fashion Bug stores.
According to Charming Shoppes chairman, president and ceo Dorrit Bern, the Gitano product will begin arriving in Fashion Bug stores during the third quarter, and will include fashionable casual merchandise offerings in plus and misses sportswear, as well as footwear offerings. “We are planning a marketing campaign to support this exciting brand offering for the fall season,” Bern said, “and [we] expect Gitano, along with other brand initiatives, to position Fashion Bug as a destination for exclusive and compelling lifestyle brands with a strong value proposition.”
The specialty retailer, which operates about 2375 stores in the U.S. under the Fashion Bug, Catherines Plus Size and Lane Bryant nameplates, reported an 18 percent decline in net income for its first quarter ended May 5, 2007. The company said the decline was primarily attributable to decreases in the company's merchandise margin, related to promotional pricing following unseasonable and unfavorable weather trends during the quarter, and to lower sales in the company's apparel-related catalogs.
Net sales for the company's retail stores segment were up 9.2 percent in the quarter and consolidated comparable-store sales were flat.
“As has widely been the experience throughout the retail apparel industry, our performance was negatively impacted by unfavorable weather trends during the quarter,” Bern said. “We had previously stated that we anticipated challenging trends for the first quarter, and in response, we managed inventories well and controlled expenses. As a result, despite these challenges we met our earnings expectations for the quarter. Entering the second quarter, we are well-positioned in our seasonal inventory levels and are confident in the positioning of our fashion offerings.”