Charming Shoppes, Inc.
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Charming Shoppes, Inc. Financial Snapshot
Operating Performance
Fast Facts
The company reported revenues of US$2,061.82
Headquarters Address 450 Winks Lane, Bensalem, 19020
million during 2011, with a CARC of -6.96% during
2007–2011. Its revenue declined at an annual rate of
Telephone + 1 215 2459100
0.13% over the previous fiscal year. In 2011, the
company recorded an operating margin of -2.04%, as
Fax + 1 215 6386759 against -3.56% in 2010.
Website www.charmingshoppes.com
Revenue and Margins
Ticker Symbol, Stock Exchange CHRS, NASDAQ
Number of Employees 6,000
Fiscal Year End January
Revenue (in US$ million) 2,061.82
SWOT Analysis
Strengths Weaknesses Return on Equity
Efficient logistics and distribution The company recorded a return on equity (ROE) of -
Geographic concentration
system 13.03% for 2011, as compared to its peers, The
Talbots, Inc. (Ticker: TLB), Coldwater Creek, Inc.
Extensive product portfolio Store locations (Ticker: CWTR) and New York & Company, Inc.
(Ticker: NWY), which recorded ROEs of 5.89%, -
Strong market position Weak financial performance 22.85% and -57.13% respectively. The company
reported a net profit margin of -2.04% in 2011.
Opportunities Threats
Return on Equity
Expansion to new markets Changing consumer preferences
Growth of online retail Counterfeit goods
Strategic restructuring Intense competition
Liquidity Position
The company reported a current ratio of 2.06 in 2011,
as compared to its peers, The Talbots, Inc.,
Coldwater Creek, Inc. and New York & Company,
Inc., which recorded current ratios of 1.38, 1.50 and
1.29 respectively. As of January 2011, the company
recorded cash and short-term investments of worth
US$117.48 million, against US$11.45 million current
debt. The company reported a debt to equity ratio of
0.34 in 2011 as compared to its peers, The Talbots,
Inc., Coldwater Creek, Inc. and New York &
Company, Inc., which recorded debt to equity ratios of
0.14, 0.06 and 0.06 respectively.
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Charming Shoppes, Inc. - SWOT Profile Page 1
Charming Shoppes, Inc.
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ................................................................................................................................................5
1.2 Business Description ..............................................................................................................................................5
1.3 Major Products and Services .................................................................................................................................6
2 Analysis of Key Performance Indicators ............................................................................................... 7
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
2.2 Key Financial Performance Indicators .................................................................................................................10
2.2.1 Revenue and Operating Profit .........................................................................................................................10
2.2.2 Asset, Liabilities and Capex .............................................................................................................................11
2.2.3 Operational Efficiency ......................................................................................................................................12
2.2.4 Solvency ..........................................................................................................................................................13
2.3 Competitive Benchmarking ..................................................................................................................................14
2.3.1 Efficiency ..........................................................................................................................................................14
2.3.2 Capital Expenditure ..........................................................................................................................................15
2.3.3 Turnover – Inventory and Asset.......................................................................................................................16
2.3.4 Liquidity ............................................................................................................................................................17
3 Mergers & Acquisitions and Partnerships ........................................................................................... 18
3.1 M&A and Partnerships Strategy ...........................................................................................................................18
4 Recent Developments ........................................................................................................................... 20
5 SWOT Analysis ...................................................................................................................................... 22
5.1 SWOT Analysis - Overview ..................................................................................................................................22
5.2 Strengths ..............................................................................................................................................................22
5.3 Weaknesses .........................................................................................................................................................22
5.4 Opportunities ............................................................