Women’s retailer Charlotte Russe Holding, Inc said Wednesday it expects third-quarter profit to be below Wall Street expectations, citing the shift in the Easter holiday and spring break periods.
Shares in the retailer were down eleven percent on the bleak outlook.
The company, which sells apparel and accessories targeting young women in their teens and twenties under the Charlotte Russe, Refuge, and blu Chic brands, said it expects quarterly earnings of about 27 cents to 30 cents a share.
Analysts on average were expecting the mall-based specialty retailer to earn 41 cents a share, before special items.
Easter holiday
Charlotte Russe, which competes with fashion retailers such as Abercrombie & Fitch Co and Hot Topic Inc, said it expects comparable store sales to remain flat or fall by a low single digit as rising food and fuel prices deterred shoppers from stocking up on spring merchandise.
"While the Easter holiday shift drove a positive comp for the third week of March, we were disappointed with our sales performance for the holiday period," Charlotte Russe CEO Mark Hoffman said in a statement.
Charlotte Russe also said it will record a favorable tax adjustment of 3 cents a share in the latest second quarter. It stood by its second-quarter earnings forecast of 12 cents to 15 cents a share, excluding the tax benefit.
March 26, 2008
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