Prediction of Loss Hits Charlotte Russe

From Reuters

Investors fled from Charlotte Russe Holding Inc. on Thursday, sending its stock down 18% after the San Diego retailer of young women's apparel warned of a loss in the current quarter.

For the fiscal first quarter ended Dec. 24, the mall-based clothing and accessories retailer posted earnings of $7.1 million, or 29 cents a share, compared with $2.2 million, or 9 cents a share, a year earlier.

Analysts surveyed by Reuters Estimates had expected the company to post earnings of 30 cents a share, on average.

The retailer had told investors Jan. 9 that earnings would be higher than expected.

The firm said Thursday that it expected a loss of 3 to 7 cents a share for the fiscal second quarter, compared with a loss of 3 cents a year earlier, and profit of 20 to 24 cents for the fiscal third quarter, up from 14 cents a year earlier.

The company said its Rampage stores, are expected to post a loss in the fiscal second quarter but return to a profit in the third.

Charlotte Russe's shares fell $3.60, or 18%, to $15.90.

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