Charming Shoppes Misses on Both Revenue and Earnings

Charming Shoppes (Nasdaq: CHRS  ) reported earnings on June 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 28 (Q1), Charming Shoppes missed estimates on revenues and earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.

Gross margins dropped, operating margins improved, and net margins contracted.

Revenue details
Charming Shoppes tallied revenue of $481.3 million. The two analysts polled by S&P Capital IQ foresaw sales of $493.9 million on the same basis. GAAP reported sales were 4.6% lower than the prior-year quarter's $504.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.16. The three earnings estimates compiled by S&P Capital IQ predicted $0.18 per share. GAAP EPS of $0.15 for Q1 were 32% lower than the prior-year quarter's $0.22 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 54.4%, 220 basis points worse than the prior-year quarter. Operating margin was 5.9%, 70 basis points better than the prior-year quarter. Net margin was 3.7%, 150 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $488.2 million. On the bottom line, the average EPS estimate is $0.06.

Next year's average estimate for revenue is $1.97 billion. The average EPS estimate is $0.27.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 137 members out of 177 rating the stock outperform, and 40 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Charming Shoppes a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Charming Shoppes is outperform, with an average price target of $7.78.

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