Charming, Chico's Improve Bottom Line

Women's apparel retailers Charming Shoppes & Chico's reported improved bottom-line results for the companies' fiscal 1st-Q, beating expectations. Most operators in the sector continue to struggle as consumers rein in spending. But in the most recent quarter, companies including Charming & Chico's benefited from cost-cutting, tight inventory planning & fewer markdowns. Charming, based in Bensalem, PA sharply narrowed its net loss in the quarter from the year-earlier period, when it recorded loss at some discontinued operations, though revenue fell 16% & same-store sales fell. New CEO Jim Fogarty described results as a disappointment, though they reflected a tough retail environment & exceeded its forecasts. Chico's based in Fort Myers said its net profit rose 14% in the period, helped by high margins, stronger sales & lower costs. Charming, which has been unprofitable for 5 straight quarters, is coming off a turbulent 2008. It eliminated hundreds of jobs, closed stores, sold some underperforming businesses, went through a bitter proxy fight & saw CEO Dorrit Bern resign. It said it shut 162 stores in the year ended May 2. The operator of the Lane Bryant, Fashion Bug & Catherine chains appointed Fogarty, a turnaround specialist, as president & CEO in March after a 9-month search. For the 3 months ended May 2, Charming reported a $6.6M net loss, or 6