Jeff Smith noon, March 8
Charlotte Russe Is One Bright Spot among Nation's Ailing Retailers
Stock of Charlotte Russe, which sells fashion merchandise to women in their teens and early 20s, is up 14.63% this morning (April 9) on the basis of better-than-expected results. The company, which has 487 stores, announced Wednesday that its adjusted third quarter earnings would beat Wall Street expectations by at least 50%. The stock has risen from Tuesday's close of $8.83 to today's $10.50. In its second quarter, sales in stores open at least a year dropped 8 percent, but profit margin was strong as the company controlled costs. Charlotte Russe put itself up for sale earlier this year. Other retailers generally reported downbeat results. Abercrombie & Fitch's March sales plunged 34 percent from a year ago. Neiman-Marcus sales were down almost 30% as upscale retailers were hit the hardest. Wal-Mart sales were up 1.4% (not including fuel) and Costco's were up 4%.