Full-Size, Full Problems

Charming Shoppes Inc. (Bensalem, Pa.) has reduced its earnings estimates for the third quarter, citing inventory problems and sales declines at its 650-unit plus-size clothing stores, Lane Bryant.

The 2400-unit operator of Fashion Bug and Catherine's Plus Size stores — and the Lane Bryant operation it purchased from The Limited in 2001 — also trimmed its full-year outlook. Charming Shoppes said it now expects to report break-even results in the third quarter, down from an August forecast for earnings of three cents a share. The company also lowered its sales forecast at stores open at least a year to a low single-digit decline from a previous estimate of low single-digit growth.

Charming Shoppes said that while fewer customers visited its mall-based Lane Bryant stores toward the end of September, it also ran short of certain high-demand items. The net result was a 6 percent decrease in sales for the month.