TCR_Public/970311.MBX




InterNet Bankruptcy Library - News for March 11, 1997






Bankruptcy News For March 11, 1997



  1. Charming Shoppes Reports Fourth Quarter




Charming Shoppes Reports Fourth Quarter


BENSALEM, Pa., March 11, 1997 - Charming Shoppes, Inc. (Nasdaq: CHRS), the retail apparel chain,
today reported net income and sales for the Fourth Quarter ended February 1, 1997.


For the three months ended February 1, 1997, the Company had net income of $2,221,000 or $.02 per share.
This compares to a net loss of $107,032,000 or $1.04 per share during the corresponding period last year. The
prior year's loss included an after tax restructuring charge of $70,000,000 or $.68 per share. Fourth Quarter
sales were $269,797,000 as against sales of $321,822,000 during the prior year. Comparable store sales
increased two and one half percent during the quarter. The Fourth Quarter included thirteen weeks as
compared to fourteen weeks during the prior year.


For the twelve months ended February 1, 1997, the Company had a net loss of $7,237,000 or $.07 per share.
This compares to a net loss of $139,241,000 or $1.35 per share for the corresponding period last year. Sales
for the twelve months were $1,016,297,000 as against $1,102,384,000 during the prior year. The Company's
comparable store sales for the year increased four and one half percent. The current year included fifty two
weeks as compared to fifty three weeks in the prior year. The decrease in sales was primarily attributable to a
net decrease in the number of stores in operation. At the end of the year, the Company was operating 1,134
stores as compared to 1,301 in 1996.


The results of operations for the year ended February 1, 1997, resulted in a decrease in the pre-tax loss from
operations of approximately $102,000,000, excluding the above restructuring charge, as compared to the prior
year. This was accomplished through changes in the Company's merchandising, marketing and sourcing
strategies as well as significant expense reductions in the operating stores, corporate headquarters and
distribution centers. During the past fourteen months the Company closed 294 underperforming stores as part of
a major restructuring which was announced during the fourth quarter of the prior fiscal year.


During 1996 Charming Shoppes opened 5 stores and closed 172, ending the year with 1,134 stores in 43
states. The Company ended the year with 10,650,000 square feet of leased space. Charming Shoppes operates
under the names "Fashion Bug" and "Fashion Bug Plus."


                                CHARMING SHOPPES,
                                INC.
                  (In thousands except shares and
                  per share amounts)

                                 4th Quarter     
                                          4th
                                 Quarter
                                    Ended        
                                               

                                    Ended
                                  February 1,    
                                          

                                  February 3,
                     Percent         1997       
                     Percent       1996
Percent
                          Change      (13 weeks)
                            of Sales    (14
                          weeks)
        of Sales

        Net Income (Loss)
         Per Share        ---        $0.02       
           ---       ($1.04)
---

        Net Sales     (16.2)%     $269,797      
        100.0%     $321,822
100.0%

        Other Income    241.2        2,931       
          1.1          859
0.3

         Total Revenue (15.5)      272,728       
         101.1      322,681
100.3

        Cost of Goods
         Sold, Buying
         and Occupancy (30.3)      205,767       
          76.3      295,075
91.7

        Selling, General and
         Administrative(28.4)       61,486       
          22.8       85,849
26.7

        Restructuring
         Charge       (100.0)            0       
           0.0      103,000
32.0

        Interest Expense 10.3        2,439       
          0.9        2,211
0.7

         Total Expenses(44.5)      269,692       
         100.0      486,135
151.1

        Income (Loss) Before
         Income Taxes (101.9)        3,036       
           1.1    (163,454)
(50.8)

        Less Income Tax
         Provision
         (Benefit)    (101.4)          815       
           0.3     (56,422)
(17.5)

        Net Income
         (Loss)      (102.1)%       $2,221       
          0.8%   ($107,032)
(33.3)%

        Weighted Average
         Number of Common
         Shares         ---    106,756,169       
           ---  103,162,169
---

                  (In thousands except shares and
                  per share amounts)

                                Fiscal Year      
                                         Fiscal
                                Year
                                   Ended         
                                              

                                   Ended
                                 February 1,     
                                         

                                 February 3,
                      Percent       1997        
                      Percent      1996
Percent
                          Change     (52 weeks)  
                            of Sales   (53 weeks)
        of Sales

        Net Loss
         Per Share       ---       ($0.07)       
           ---       ($1.35)
---

        Net Sales      (7.8)%   $1,016,297      
        100.0%   $1,102,384
100.0%

        Other Income     32.0        7,464       
          0.7        5,655
0.5

         Total Revenue  (7.6)    1,023,761       
         100.7    1,108,039
100.5

        Cost of Goods Sold,
         Buying
         and Occupancy (14.7)      782,671       
          77.0      917,064
83.3

        Selling, General and
         Administrative(19.3)      241,431       
          23.8      299,297
27.1

        Restructuring
         Charge       (100.0)            0       
           0.0      103,000
9.3

        Interest Expense161.3        9,579       
          0.9        3,666
0.3

         Total Expenses(21.9)    1,033,681       
         101.7    1,323,027
120.0

        Loss Before
         Income Taxes  (95.4)      (9,920)       
         (1.0)    (214,988)
(19.5)

        Less Income
         Tax Benefit   (96.5)      (2,683)       
         (0.3)     (75,747)
(6.9)

        Net Loss      (94.8)%     ($7,237)      
        (0.7)%   ($139,241)
(12.6)%

        Weighted Average
         Number of
         Common Shares   ---   105,649,093       
           ---  103,038,224
---

SOURCE Charming Shoppes, Inc./CONTACT: Bernard Brodsky, Vice President & Treasurer of Charming
Shoppes, 215-638-6719/