Charming Shoppes (CHRS) Tops Q3 EPS by 1c; Will Divest Fashion Bug
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Charming Shoppes (NASDAQ: CHRS) reported Q3 EPS of ($0.08), $0.01 better than the analyst estimate of ($0.09). Revenue for the quarter came in at $429.7 million versus the consensus estimate of $445.69 million.
Anthony M. Romano, President and Chief Executive Officer of Charming Shoppes, Inc. said, "We are currently engaged in a number of initiatives that we believe will further improve our business and enhance shareholder value. The first substantive step is our decision to divest our Fashion Bug business. While we have made progress in improving Fashion Bug's profitability, we believe that it does not fit within our future strategic plan. Concurrent with this process, we are assessing the appropriate expense structure for the Company in light of the planned divestiture of Fashion Bug."
As noted above, the Company also announced that it is undertaking a strategic and financial review of all of its businesses. This review is expected to focus on optimizing the use of the Company's strong cash position, driving the potential of the flagship Lane Bryant brand, as well as evaluating other alternatives to further enhance shareholder value.
In that regard, the Company's Board and management will explore a full range of strategic alternatives for Charming Shoppes, and have engaged Barclays Capital as its financial advisor to assist in the process. The Company noted that there can be no assurance that this review will result in any specific course of action beyond the planned divestiture of Fashion Bug, and the Company does not intend to comment further on this review until completed. A timeframe for the divestiture of Fashion Bug or the completion of the strategic review has not yet been determined.
Anthony M. Romano, President and Chief Executive Officer of Charming Shoppes, Inc. said, "We are currently engaged in a number of initiatives that we believe will further improve our business and enhance shareholder value. The first substantive step is our decision to divest our Fashion Bug business. While we have made progress in improving Fashion Bug's profitability, we believe that it does not fit within our future strategic plan. Concurrent with this process, we are assessing the appropriate expense structure for the Company in light of the planned divestiture of Fashion Bug."
As noted above, the Company also announced that it is undertaking a strategic and financial review of all of its businesses. This review is expected to focus on optimizing the use of the Company's strong cash position, driving the potential of the flagship Lane Bryant brand, as well as evaluating other alternatives to further enhance shareholder value.
In that regard, the Company's Board and management will explore a full range of strategic alternatives for Charming Shoppes, and have engaged Barclays Capital as its financial advisor to assist in the process. The Company noted that there can be no assurance that this review will result in any specific course of action beyond the planned divestiture of Fashion Bug, and the Company does not intend to comment further on this review until completed. A timeframe for the divestiture of Fashion Bug or the completion of the strategic review has not yet been determined.
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