UPDATE 1-Charlotte Russe posts higher Q2 profit

jueves 24 de abril de 2008 00:06 CEST

(Recasts; adds details)

April 23 (Reuters) - Women's retailer Charlotte Russe Holding Inc CHIC.O reported an almost 11 percent rise in its second-quarter profit, driven by higher sales and a favorable tax expense adjustment.

The company posted a net income of $4.2 million, or 17 cents a share, compared with $3.8 million, or 15 cents a share, a year earlier.

Net sales increased 15 percent to $185.1 million.

Analysts on average expected the mall-based specialty retailer to earn 16 cents a share, before special items, on revenue of $186.7 million, according to Reuters Estimates.

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 its results included a favorable tax expense adjustment of about 3 cents a share.

Charlotte Russe still expects third-quarter same-store sales to remain flat or fall by a low single digit.

However, the company, which competes with fashion retailers such as Abercrombie & Fitch Co (ANF.N: Cotización) and Hot Topic Inc HOTT.O, added that it continued to remain cautious in the current retail environment.

Charlotte Russe, based in San Diego, said it expected its share repurchase program to benefit third-quarter earnings by about 4 cents a share.   Continuación...