April 17, 2009 / 5:47 PM / 10 years ago

CORRECTED - CORRECTED-UPDATE 2-KarpReilly withdraws nominees to Charlotte Ru

(Corrects paragraph 6 to clarify that the company said it has the opportunity, not that it expects, to expand its outlet locations by 60)

* Charlotte Russe nominees get support from proxy firms

* KarpReilly withdraws three nominees

* Q2 sales up 3.3 pct to $191.2 mln

* Sees Q3 adj EPS $0.17-$0.27 vs est $0.24 (Adds quarterly results, conference call details)

April 16 (Reuters) - Charlotte Russe Holding Inc (CHIC.O) said shareholder KarpReilly LLC withdrew its nominees to the company’s board, after two proxy advisory firms recommended shareholders re-elect all seven directors.

Separately, Charlotte Russe posted a second-quarter profit of 4 cents a share, that missed estimates by a cent, and it forecast third-quarter profit largely in line with market estimates. [ID:nWNAB4238]

The women’s-apparel retailer, which is carrying out a process for the sale of the company, said all of its nominees have received support of Riskmetrics Group and Glass Lewis.

KarpReilly had proposed to buy Charlotte Russe in November 2008 but subsequently withdrew its proposal.

In March, Charlotte Russe urged shareholders to reject KarpReilly’s proposed slate of nominees, citing the groups conflict of interest.

In a conference call with analysts, Chief Executive John Goodman said Charlotte Russe, which is taking various measures to cut costs, sees an opportunity to boost its 47 outlet locations by an additional 60. [ID:nWNAB4291]

Shares of the retailer, which competes with Abercrombie & Fitch Co (ANF.N) and Hot Topic Inc HOTT.O, were trading at $11.85 after the bell. They closed at $11.93 Thursday on Nasdaq. (Reporting by Poojya Trivedi in Bangalore; Editing by Ratul Ray Chaudhuri and Deepak Kannan)

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