CHARMING SHOPPES, INC.
2004 IN REVIEW
it’s all
about
CATHERINES
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a leader in plus-sizes
CHARMING SHOPPES, INC. is America’s largest plus-size women’s specialty apparel retailer,
through Lane Bryant, Fashion Bug and Catherines Plus Sizes.
®
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We are the nation’s third-largest specialty retail apparel holding company. With 2,221
stores nationwide and online selling for each of our brands, Charming Shoppes has
a significant presence in both strip shopping center and mall locations, as well
as providing the convenience of online shopping.
Our vision is to be the company known for celebrating the lives and fashion image of
women wearing plus-sizes. Our continuing mission is to serve the lifestyle apparel needs
of women wearing plus-sizes with the very best service, fashion selection, value and fit.
Through our three distinct brands—Lane Bryant, Fashion Bug and Catherines—
Charming Shoppes has the ability to serve every plus-size woman in America.
Here’s how our brands are differentiated:
CATHERINES
Our Brands:
P
Target Customer:
Fashion:
Customer Income:
Annual Sales:
Stores at Year End:
L
U
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Contemporary
Mainstream
Baby boomers
Fashion-oriented
plus-size
Updated plus-size,
misses, and juniors
Classic plus-size,
Extended plus-size
Moderate to better
Low to moderate
Moderate
Nearly $1 billion
Over $1 billion
Over $300 million
722 in 46 states
1,028 in 45 states
471 in 44 states
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2004 in Review
Financial Highlights
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page 1
(in thousands, except percentages and per share amounts)
2004
SELECTED INCOME STATEMENT DATA(1)
Net sales
Gross profit
Selling, general, and administrative expenses
Expenses related to cost reduction
and restructuring plans
Income from operations
Income before income taxes, minority interest,
and cumulative effect of accounting changes
Income before minority interest
and cumulative effect of accounting changes
Net income (loss)
2003
% to sales
$ 2,332,334
692,086
577,301
29.7%
24.8%
2002
% to sales
$ 2,285,680
642,864(2)
558,248(2)
28.1%
24.4%
% to sales
$ 2,412,409
686,103
603,502
28.4%
25.0%
NET SALES
(dollars in millions)
605
114,180
(3)
0.0%
4.9%
11,534
73,082
(3)
0.5%
3.2%
(4,813)
87,414
(4)
101,668
4.4%
59,523
2.6%
69,450
64,526
64,526
2.8%
2.8%
37,900
38,042
1.7%
1.7%
42,333
(6,086)(5)
– 0.2%
3.6%
‘04
2.9%
‘02
$ 2,332
$ 2,286
‘03
$ 2,412
1.8%
– 0.3%
SELECTED PER SHARE DATA, ASSUMING DILUTION(1)
Income before minority interest and
cumulative effect of accounting changes
Cumulative effect of accounting changes
Net income (loss)
Diluted weighted average common
shares and equivalents outstanding
TOTAL ASSETS
(dollars in millions)
$
0.52
–
0.52
$
0.33
–
0.33
$
0.36
(0.37)(5)
(0.01)
‘03
‘02
133,174
128,558
$ 1,304
‘04
$ 1,173
$ 1,140
130,937
SELECTED BALANCE SHEET DATA(1)
Cash, cash equivalents,
and long-term available-for-sale securities
Total assets
Total long-term debt, including current portion
Total liabilities
Working capital
Stockholders’ equity
Long-term debt to equity ratio
Current ratio
$
273,289
1,303,771
225,064
609,307
413,989
694,464
30.0%
2.4
$
138,302
1,173,070
220,097
585,661
266,178
587,409
34.5%
1.9
$
118,228
1,139,564
215,640
593,009
190,797
546,555
37.1%
1.6
PERFORMANCE DATA, BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGES (1)
Net return on average stockholders’ equity
Net return on average total assets
10.1%
5.2%
6.7%
3.3%
(1) Certain amounts for years 2002 and 2003 have been restated to correct our accounting for landlord allowances, calculation of straight-line rent expense,
recognition of rent holiday periods, and depreciation of leasehold improvements for our retail stores.
(2) Includes reclassifications to conform to the current-year presentation.
(3) Related to a cost reduction plan, announced in March 2003, designed to take advantage of the centralization of corporate administrative services
and to realize certain efficiencies, in order to improve profitability.
(4) Related to a restructuring plan, announced in January 2002, that included the closing of The Answer/Added Dimensions chain of 77 stores;
the conversion of approximately 20% of the Added Dimensions stores to Catherines stores; the closing of 130 under-performing Fashion Bug stores;
and the conversion of 44 Fashion Bug stores to Lane Bryant stores.
(5) Includes cumulative effects of accounting changes related to the adoption of the provisions of SFAS No. 142, “Goodwill and Other Intangible Assets,”
and EITF Issue 02-16, “Accounting by a Customer (Including a Reseller) for Cash Consideration Received from a Vendor.”
7.6%
3.7%
TOTAL
STOCKHOLDERS’ EQUITY
(dollars in millions)
$ 694
‘04
‘03
‘02
$ 587
$ 547
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2004 in Review
dear shareholder:
During 1999, Dorrit Bern and her team
began the execution of a strategy to expand
the Company’s focus on the women’s plus-size
apparel business, recognizing the demographics
of American women, and how supportive
those demographics are to the growth of this
consistently healthy apparel category.
We made superb progress in 2004 in our drive to enhance our merchandising assortments for our customer
and thereby improve operating performance at Charming Shoppes. Growth
in the top line and gross margin enabled us to increase net income by 70%
and to generate significant and increased free cash flow during the year.
Among our more noteworthy achievements in 2004 was the strong
improvement at our Lane Bryant brand. We made progress on virtually
every front at Lane Bryant, including increased comparable store sales,
sales per square foot, growth in its e-commerce business and expanded
gross margins, all of which contributed meaningfully to our increased
operating results. Our ability to deliver great fashions and re-identify
with our customer base is at the heart of our strategy.
We continued to grow our Lane Bryant store base, primarily in off-mall
formats, in line with our strategy to expand the chain and incrementally
FORWARD-LOOKING STATEMENTS: This publication contains certain forward-looking statements concerning the Company’s operations,
performance, and financial condition. These forward-looking statements include statements regarding future performance, sales, expenses,
gross margin, capital expenditures, earnings per share, store openings and closings, and other matters. Such forward-looking statements are
subject to various risks and uncertainties that could cause actual results to differ materially from those indicated. Such risks and uncertainties
may include, but are not limited to: failure to successfully implement the Company’s business plan for increased profitability and growth
in the plus-size women’s apparel business, changes in or miscalculation of fashion trends, extreme or unseasonable weather conditions,
economic downturns, a weakness in overall consumer demand, failure to find suitable store locations, the ability to hire and train associates,
trade restrictions and political or financial instability in countries where goods are manufactured, the interruption of merchandise flow to
the Company’s retail stores from its centralized distribution facilities, competitive pressures and the adverse effects of acts or threats of war,
terrorism or other armed conflict on the United States and international economies. These, and other risks and uncertainties, are detailed
in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the fiscal
year ended January 29, 2005 and other Company filings with the Securities and Exchange Commission. Charming Shoppes assumes no duty
to update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or
implied therein will not be realized.
improve our operating margins at Lane Bryant. More than 25% of
our Lane Bryant store base now operates in strip and lifestyle centers,
with revenues rivaling those we have historically seen in mall locations,
but with lower operating costs as a result of the generally lower occupancy
costs in strip and lifestyle centers. Comparable store sales in our
off-mall locations continue to outpace those of our mall stores, benefiting
from the value our customer places on the convenience of these locations.
As we continue to grow our store base in strip and lifestyle centers,
we expect to see improvement in the four-wall contribution of our
bricks-and-mortar channel at Lane Bryant.
Modern Woman. The first phase of the
plus apparel strategy was to acquire the
137-store Modern Woman chain in 1999.
The Modern Woman chain specialized in
plus-size women’s apparel, predominantly
in major metropolitan markets. Modern
Woman serviced a true-moderate customer,
ranging in age from 35-65 years old.
1999
Catherines. In January 2000, the 433 store
Catherines Stores Corporation was acquired,
with the strategic plan of integrating Modern
Woman into Catherines. Charming Shoppes
became the second largest women’s plus-size
specialty apparel retailer in the country, with over
1,700 stores, and approximately 20% market
share in women’s plus-size specialty apparel.
2000
alight.com. In April 2001, Charming
Shoppes purchased the website
assets of alight.com, an online retailer
specializing in plus-size women’s apparel.
The technology platform accelerated
the Company’s online marketing and
e-commerce strategy, complementing
its bricks and mortar brands.
2001
Lane Bryant. In August 2001,
Charming Shoppes acquired America’s
number one, premier plus-size specialty
apparel provider, Lane Bryant. Now the
leading women’s plus-size specialty
apparel retailer with approximately
40% market share, Charming Shoppes
is the nation’s third-largest specialty
retailer, and operates over 2,200 stores.
2002
2003
Our most prominent new Lane Bryant store opened on April 15, 2004,
to serve. We saw increases in our Catherines e-commerce business, driven
on 34th Street in Manhattan, New York. The opening marked the
by sales in our extended plus-sizes, a size range that is particularly difficult
100th anniversary of Lane Bryant, and we celebrated this important
for our customer to find. We are also expanding our size offerings in
®
milestone by ringing the opening bell at the NASDAQ Stock Market
our intimate apparel line.
on April 29, 2004. Another important Lane Bryant store location opened
in October 2004 in the Easton Town Center in the Columbus, Ohio,
Fashion Bug—the brand that provides our customer affordable fashion
trade area. The Easton Town Center contains more than one million
in plus, misses and juniors sizes— ended the year with slightly positive
square feet of “best of class” restaurant, retail, entertainment and service
comparable store sales. This growth, coupled with improved gross margin
operators and is a premier location in which to showcase Lane Bryant’s
performance, was achieved while executing an important corporate
stylish and fashionable apparel assortments.
initiative: decreasing our inventory levels. Indeed, Fashion Bug’s inventories
on a same-store basis decreased by 8% last year, and we will again challenge
Sales at Lane Bryant’s e-commerce retail channel, lanebryant.com, enjoyed
Fashion Bug to make advances on this corporate-wide objective, while
exciting growth during the year. Launched just two years ago, Lane Bryant’s
at the same time continuing to add market share to the Fashion Bug brand.
e-commerce sales have quickly grown to 3% of sales at Lane Bryant and are
expected to reach nearly 5% in 2005. Among our successes at lanebryant.com
Responding to the wants and needs of our customer, Fashion Bug added
are exclusive online product offerings and a breadth of size ranges that
two apparel categories this year: Bundle of Joy™ Maternity, our own private
cannot be accommodated in our bricks-and-mortar format. Lanebryant.com
label, and popular, fashion-right merchandise offerings in girls’ sizes.
also began selling our fashions to Canadian consumers during the year and
Our Catherines Plus Sizes brand, known nationally as a specialist
For each of our brands, we are embarking on
a heightened focus on two key product categories,
premium denim and intimates. We enjoy the top market
in extended plus-sizes (28W to 36 W ) and petite plus-sizes, is enjoying
position in both women’s specialty plus-size denim and women’s
can now serve a vast community of Canadian residents.
an improving spring season following a year of disappointing performance
specialty plus-size intimate apparel, and we are adding products and
in 2004. We believe Catherines can benefit from the particularly strong
floor space and expanding assortments to become even more relevant
demographics surrounding our Catherines customer, including age, a tendency
to our customer in these important categories.
toward larger sizing and a rapidly growing ethnic population that we seek
figure Magazine. In August 2003,
Charming Shoppes launched figure
magazine, a lifestyle magazine that
celebrates the beauty, health and
lifestyles of the everyday average
American woman. figure was created
just for our customers, and is the
authority on women’s plus-size fashion.
2004
• We
hold the #1 position
in women’s plus-size specialty
apparel, with approximately
40% market share.
• We
are the 3rd largest
women’s specialty apparel
retailer, with 2,221 stores and
$2.3 billion in annual sales.
• We
hold the #1 market share
positions in women’s specialty
plus-size denim and specialty
plus-size intimate apparel.
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2004 in Review
“Growth in
the top line and gross margin enabled us to increase
net income by 70% and to generate significant and increased free cash flow during the year.”
Supporting
Demographics
• An
estimated 65%
of American adults
are overweight.(1)
In denim, we began with Lane Bryant’s introduction of the Venezia
in our direct-to-consumer infrastructure, including hiring a team of seasoned
Supreme Jean,™ followed closely by the addition of the Seven7™ jean to
executives. This team is charged with the responsibility of developing
select Lane Bryant stores and at lanebryant.com. Catherines followed
the infrastructure and expertise Charming Shoppes requires to launch new
®
suit, offering the Gloria Vanderbilt jean, a name that resonates well
catalogs, most significantly our own Lane Bryant catalog in late 2007,
with our baby boomer Catherines customer. And this fall, look for an
when those catalog-naming rights revert to Charming Shoppes.
exciting and affordable premium jean launch, called Deluxe,™ for our
• The
average women’s
dress size is a size 14.(2)
• Baby
boomers and
ethnic groups represent
the fastest growing
components of the
country’s projected
population.(3)
Fashion Bug customer.
Further enhancing our ability to communicate and connect with our
customer, we have expanded figure, our own lifestyle magazine, from four
At each of our brands, we are pursuing aggressive growth plans in our
to six issues per year. The response has been overwhelming, with more
intimate apparel offerings. Lane Bryant’s extended collection of intimates
than three million copies of our magazine sold to date. Not only do we
is available in select stores and online; Catherines is testing larger intimate
enjoy the opportunity to showcase our brands’ fashions in the magazine,
apparel departments in stores this year; and Fashion Bug will be introducing
but we are also creating loyalty and recognition with our rapidly growing
a new visual merchandising approach to enhance its sales in intimates.
subscriber and reader base. Our figure readers are invited to join the first
figure at Sea adventure, in November 2005, aboard Carnival’s brand new
During 2004, the launch of e-commerce at fashionbug.com completed
“Fun Ship,® ” Carnival Valor. A weeklong celebration for figure readers, the
our objectives at each of our major brands: to provide online sales
trip was created to enhance the mind, body and spirit. We think of it
capabilities, to evolve to a two-channel retailer and to increase our
as figure magazine come to life!
customers’ shopping choices.
Operationally, our achievements in credit, technology, distribution
We are exhilarated by the opportunity the catalog channel affords
and compliance with Sarbanes-Oxley are noteworthy.
us — to increase our relevance to our core customer and at the same time
enhance our profitability. Research tells us that customers who can
(1) National Health and Nutrition
Examination Survey, 2002.
(2) National Geographic
Magazine, August 2004.
(3) Derived from U.S. Census
Bureau projections.
Our credit program, which consistently contributes to Charming Shoppes’
avail themselves of a retailer’s tri-channel strategy, i.e., bricks-and-mortar,
profitability, again performed strongly in 2004, benefiting from lower
e-commerce and catalog, spend an average of four times more than
delinquency levels in our Fashion Bug credit portfolio. Following our year
single-channel customers.* During 2004, we began making investments
end, in March of 2005, Spirit of America National Bank, our wholly
owned credit card bank, acquired the Catherines proprietary credit card
portfolio and added the Catherines credit card receivables to the
* Source: Forrester Research
Charming Shoppes Master Trust.
2004 in Review
Credit sales are approximately 29% of annual sales for each of our brands,
I would like to recognize the thousands of hours expended by hundreds
and our objective is to grow that penetration to a full one-third. Our credit
of associates at Charming Shoppes who contributed to our efforts
customers add an increased element of loyalty to each brand and contribute
in meeting our compliance requirements on effective internal controls
to our bottom line more robustly than do our non-credit customers.
over financial reporting, as prescribed by Section 404 of the
Additional goals for our credit organization during 2005 involve the launch
Sarbanes-Oxley Act of 2002.
®
of a figure VISA Affinity Card and the co-use of the Fashion Bug and
our 2,221 stores during 2004. A few of the benefits to our customers, our
I look back over the last five years with pride,
as we have transformed Charming Shoppes into
America’s leading women’s plus-apparel specialty
retailer, serving our customers in a multi-brand,
multi-channel format. We are firmly committed to our strategy
Company and our store associates: reduction in transaction time, reduction
of continuing to gain market share in women’s specialty apparel, increasing
in store operating expense, gift card and loyalty program capabilities,
corporate profit margins and most important, putting the customer at the
a style locator system for enhanced customer service, and online training
center of the decisions we make. After all, it’s all about her.
Catherines proprietary cards.
On the technology front, we have added many new tools to our growing
store base. We completed the rollout of new POS equipment at each of
and communication for store associates. We also began the implementation
of the ProfitLogic® markdown optimization solution, starting with our
Fashion Bug stores in 2004. This program will be extended to our
Lane Bryant and Catherines chains in 2005.
DORRIT J. BERN
We purchased our White Marsh, Maryland, distribution center in
September 2002, and in 2004 we completed our first year of consolidated
distribution operations for our Catherines and Lane Bryant brands.
This consolidation enabled Charming Shoppes to decrease distribution
costs annually by approximately $8 million and will support our store
growth plans, particularly for our Lane Bryant brand.
Chairman of the Board of Directors,
President and Chief Executive Officer
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2004 in Review
A widely recognized name
in plus-size fashion.
Lane Bryant is the most recognizable name
in women’s specialty plus-size apparel.
Emphasis on fashion and fit—not merely size—
makes Lane Bryant a style leader.
2004 in Review
Lane Bryant customers shop for style, not just for size. The Lane Bryant customer has a youthful attitude
and unapologetic self-confidence. She wants a fit that flatters her, and by offering the latest silhouettes,
fabrics and accessories, Lane Bryant is the premier choice for her.
With over 700 stores nationwide and a growing direct-to-consumer business, Lane Bryant has earned strong
brand loyalty from our customers. Continual updates and a fashion focus keep Lane Bryant competitive
with other fashion leaders, regardless of size focus.
Lane Bryant continues to increase the number of stores in strip and lifestyle centers, and currently operates
more than 25% of its stores in off-mall formats. Our long-term goals include growing this profitable brand
to 1,000 stores nationwide, with the penetration of off-mall formats ultimately reaching 50% of our store base.
• More than 700 stores in 46 states, primarily in mall locations, with a growing presence
in strip and lifestyle shopping centers
• The latest fashion at moderate prices, exclusively in plus-sizes 14-28, for women ages 25-45
• Offering stylish and sophisticated casual, wear-to-work and intimate apparel exclusively in plus-sizes
• Average store size 5,900 square feet
www.lanebryant.com (launched March 2003)
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2004 in Review
It’s Better at the Bug
Trendy. Stylish. Affordable.
From the newest trends to fashion basics,
Fashion Bug offers better style, better selection
and better value for plus, misses,
maternity, juniors and girls.
2004 in Review
At Fashion Bug, women of all life stages and lifestyles — from teens to mothers and from casual to career— find
better selection, better styles and better value. We offer women across the country better value than the department
stores and better style than the discount stores, a combination that appeals to fashion- and value-minded women
of all sizes.
During 2004, Fashion Bug introduced maternity and girls’ apparel offerings, making us the total fashion
source for all our customers’ apparel needs. In August, Fashion Bug entered the direct-to-consumer business
by launching fashionbug.com.
• Over 1,000 specialty stores in 45 states, primarily strip shopping center locations
• Our core customers are women ages 20-49; also serving teens and girls ages seven and up
• Value-priced fashionable apparel in plus, misses and juniors sizes
• Offering sportswear, intimate apparel, accessories, footwear, girls’ and maternity departments
• Average store size 8,900 square feet
www.fashionbug.com (launched August 2004)
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2004 in Review
®
CATHERINES
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A store for stylish tastes
Catherines offers classic apparel and accessories for
career and casual lifestyles. Catherines’ customer
base benefits from favorable demographic trends,
including an aging population and the accompanying
tendency toward increasing apparel sizes,
as well as a rapidly growing ethnic population.
2004 in Review
As fashion fit experts, Catherines specializes in classic plus-size apparel and extended sizes. Offering stylish career
and casual clothing for plus-size women at moderate prices, Catherines has more than 450 stores in 44 states.
We fill a much-needed niche by recognizing the fashion needs of women who wear sizes 16W to 26W, as well as
28W to 34W, a size range not readily offered by apparel retailers. Petite lengths in sizes 16WP to 26WP are
also available in our stores.
Serving plus-size customers ages 40-65, Catherines has always strived to provide outstanding customer
service in a comfortable store environment. Sales associates are specially trained to anticipate the needs of
the customer and always put her first.
• More than 450 specialty stores in 44 states, primarily in strip shopping center locations
• Classic and stylish plus-size apparel, exclusively in Plus, Petite Plus and Extended Plus-Sizes
• Serving plus-size women ages 40-65, and catering to classic tastes in the moderate price range
• Average store size 4,100 square feet
www.catherines.com (launched March 2002)
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2004 in Review
Intimate Apparel
A leading
market share
Every well-dressed woman knows that what’s beneath her clothes counts
The newly expanded Cacique collection offers dozens of choices in bra styles,
as much as what’s on top. Comfort is essential, fit is paramount, and once
colors and fabrics, giving plus-size customers of all body types hundreds
Charming Shoppes’ intimate
apparel sales represent over
10% market share in women’s
plus-size intimates, and the
#1 position in America in
specialty plus-size intimates.
a woman owns the basics, is where the fun begins.
of different bra size and color choices. At Lane Bryant, we’ve added square
footage to Cacique in more than 70 stores, and have increased our online
At Charming Shoppes, our customers rely on us and trust us to provide
offerings at lanebryant.com.
an exciting, beautiful and varied assortment of intimate apparel styles.
We know that great lingerie makes a woman feel confident, and this
The expansion of size ranges online at catherines.com, particularly for our
year, intimate apparel is more vibrant than ever, with feminine details,
extended size customer, helped to drive our sales in intimate apparel during
We launched
our Cacique
embellishments and prints. Each of our brands, Lane Bryant, Catherines
2004. In 2005, Catherines began adding square footage to selected intimate
and Fashion Bug, give our customer a shopping environment created
apparel departments in our stores. Now, in addition to the incredible breadth
intimate apparel brand in
February 2001, and today,
intimate apparel has grown to
22% of sales at Lane Bryant.
especially for her, with fashion options that she can’t match anywhere else.
of sizes available online, our Catherines customer is offered more fashions,
silhouettes and colors than ever before. Through our intimate apparel private
A fashion category that gives a consistently stellar performance at Charming
label, Serenada, our Catherines customer has more choices in intimates
Shoppes, intimate apparel represents an opportunity for increased market
than ever before. Intimate apparel sales represent approximately 12% of
share, in a business that historically provides more robust returns than
total sales at Catherines Plus Sizes.
other apparel categories. For a number of years, the growth in intimate
apparel has outpaced growth in sportswear categories.
Fashion Bug will be introducing expanded product assortments, expanded
intimate apparel departments in select stores, and a new visual merchandising
We launched our Cacique intimate apparel brand in February 2001,
approach to enhance their sales in intimates during 2005. We’ll be improving
and today, intimate apparel has grown to 22% of sales at Lane Bryant.
our fixtures and enhancing our presentation, with a focus on increasing our
Because Lane Bryant uniquely understands our customers’ needs, the
market share in bras and panties. Today, approximately 8% of Fashion Bug’s
Cacique brand today holds the #1 market share in specialty plus intimates
total sales are in intimate apparel.
in America. Recognized as the expert and fit specialist in plus-size
intimate apparel, Lane Bryant has enhanced its Cacique lingerie collection
with new looks, designs and fabrications that allow the plus-size woman
to look and feel fabulous. Each piece has been designed with her
body in mind, giving her the extra support and comfort she demands.
2004 in Review
An extended collection of intimates,
in plus-size fashion.
Each of our brands are pursuing aggressive growth plans for our intimate apparel offerings.
Lane Bryant’s extended collection of intimates is available in select stores and online. Catherines is testing
larger intimate apparel departments in stores this year, and Fashion Bug will be introducing expanded
product assortments and a new visual merchandising approach to enhance its sales in intimates.
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2004 in Review
Premium Denim
A leading
market share
Charming Shoppes’ denim
sales represent approximately
15% market share in women's
plus-size denim, the #1
position in America and in
specialty plus-size denim.
GLAMOUR Magazine
In GLAMOUR’s annual
Denim Issue, Lane Bryant jeans
have been cited numerous
times not only as the most
figure-flattering jeans
for plus-sizes, but also as
“model’s favorite” and
“best jeans for plus-sizes.”
Charming Shoppes is America’s leader in women’s specialty plus-size
finishing for superior durability and character. And all are exclusive to
denim, with 15% market share.
Lane Bryant in plus-sizes. Our Seven7™ jeans can be worn with a casual
top for an afternoon shopping trip or dressed up for a night out on the
Lane Bryant’s Venezia® brand is the leading brand in specialty plus-size
town. The first national brand offered in Lane Bryant’s history, this
jeans with #1 market share. Denim represents approximately 11% of
exclusive assortment will be available chain-wide for the Fall 2005 season.
total sales at Lane Bryant.
Catherines now offers designer jeans by Gloria Vanderbilt®, a name that
™
Like expensive designer jeans, Lane Bryant’s Venezia Supreme Jean has
resonates strongly with our Catherines baby boomer customer. Designed in
trendy details and a premium look. We started with crosshatch stretch
comfortable stretch denim, this collection of jeans offers plus-size women a
denim and gave it a variety of washes, highlighted with embroidered accents.
variety of figure-flattering silhouettes including boot-cut and classic five-pocket.
Our attention to detail extends beyond where the eye can see, with fashion
For a designer look, the Gloria Vanderbilt® collection comes in dark antique
touches included on the pocket linings and waistband. And of course,
washes with special details such as crosshatch fabrics and metal grommet belts.
the back pocket features the sweeping new Venezia® “V” logo.
The jeans, available in average and petite lengths, are offered in both plus
In 2004, Lane Bryant launched the new Seven7™ jean collection, our
premium denim brand uniquely styled in fit and fashion for plus-size women
wearing sizes 14-28. Customers can buy the new jean collection at select
and extended plus-sizes at select Catherines stores as well as at catherines.com.
Denim represents approximately 5% of total sales at Catherines.
Fashion Bug’s L.A. Blues® private label has been serving the Fashion Bug
Lane Bryant stores as well as at lanebryant.com. Known for designing figure-
plus and missy customer with a great variety of denim styles since 1986.
flattering jeans for plus-size women, Lane Bryant introduced Seven7™ jeans
Denim represents approximately 8% of total sales at Fashion Bug.
with special details such as whiskering, tacking, sanding and embroidered
Watch for Fashion Bug’s introduction of an exciting and affordable
pockets. Each pair is beaten and faded by hand to create an authentic vintage
premium denim line, called Deluxe,™ in Fall 2005.
look. Darker colors and a stretch fabric that retains its shape make this
jean both stylish and comfortable. All of the styles are made using innovative
2004 in Review
™
Fashion denim in all the right sizes
Plus-size women can always rely on us
for great style and designer details in our denim collections.
I
page 15
page 16
I
2004 in Review
E-commerce
During 2004, Charming Shoppes’ multi-channel strategy for each of our
began servicing Canadian shoppers, following years of mail and e-mail
brands to offer e-commerce was completed with the launch of fashionbug.com.
requests from an eager base of Canadian consumers.
Our rapidly growing e-commerce businesses have more than doubled in each
of the last two years, with plans to nearly double our volume again during
We began offering virtual e-gift cards online (redeemable both online and
2005. This profitable direct-to-consumer shopping channel allows us to
in stores) in time for the 2004 holiday season, and have seen significant
reach more women than ever before with our merchandise offerings.
growth in this popular gift-giving option. In 2004, gift cards, for the first
time, outpaced apparel as the top holiday gift-giving choice.*
At catherines.com, one of the most popular offerings is our extended
size assortment, a size specialization at Catherines. We’ve also
Early in 2005, we began testing online cross-brand merchandising,
provided the solution for hard-to-find sizes in intimates, with virtually
beginning with our private-label Bundle of Joy™ maternity wear and Fashion
every plus-size imaginable available at catherines.com.
Bug footwear. Since Fashion Bug offers wonderful maternity fashions
and footwear online, we’re able to offer them to our Lane Bryant and
Lane Bryant’s website has enabled us to offer a fabulous and successful
swimwear business, which had not previously been available in
our bricks and mortar formats. And in November, lanebryant.com
Catherines online visitors through cross brand merchandising.
* Source: Deloitte & Touche USA LLP Annual Consumer Survey
of Holiday Retail Spending Plans and Trends.
E-COMMERCE: 2001–2005
2001
April – Charming Shoppes purchases the website
2004
assets of alight.com, an online retailer specializing in
August – Fashion Bug launches e-commerce capabilities
at fashionbug.com.
plus-size women’s apparel.
November – Canadian residents are able to purchase
2002
March – Catherines Plus Sizes becomes Charming Shoppes’
Lane Bryant fashions at lanebryant.com.
first brand to offer online selling at catherines.com.
2005
2003
March – Lane Bryant’s award winning website,
January – Charming Shoppes’ annual revenues from
e-commerce double to more than $30 million.
lanebryant.com, begins selling online.
March – Charming Shoppes’ brands begin
online cross-branding capabilities, starting with
footwear and maternity wear.
2004 in Review
I
page 17
It’s all about her
Knowing Our Customer
SPEAKING WOMAN TO WOMAN
figure aims to inspire our customers to feel great about themselves and
At Charming Shoppes, our values include openness, honesty and genuine
create a stronger bond with our store brands. It’s filled with beautiful clothes
concern for our customers and the communities we serve. We not only
our customers would really wear featured on models that represent happy
listen to our customer, but actively and continually seek her input, from
and confident women just like our customers. figure also offers exceptional
comments on our clothing and stores, to the concerns she faces in her
articles that will touch her heart, open her eyes and stimulate her mind.
community. Through a column called “Speaking Woman to Woman,”
Chairman and CEO Dorrit Bern has created an ongoing dialogue with
figure is created by a team of some of the best editors, writers and
customers to better understand their needs, desires and lifestyles. Her
fashion photographers in the country. It has wonderful photos, sharply
messages, designed to provoke thought as well as action, encourage
written articles and an overall feeling of warmth and friendliness.
women to reply with their thoughts and opinions.
Visit us at figuremag.com.
FIGURE MAGAZINE
FIGURE AT SEA
Through our communications with our customers, a recurring theme
In November 2005, figure magazine will sponsor figure at Sea, a seven-day
emerged, relating to the portrayal of women in fashion magazines. Our
cruise to the eastern Caribbean presented by figure magazine just for our
figure MAGAZINE
customers longed for a magazine that would celebrate the beauty, health
readers. The trip is being created to enhance the mind, body and spirit of
www.figuremag.com
and lifestyle of the everyday American woman.
our customers. Think of it as figure magazine come to life.
In August 2003, figure magazine debuted, and Charming Shoppes presented
On board, figure at Sea guests will enjoy delicious dining, exciting
its customers with the opportunity to buy a quarterly fashion and lifestyle
entertainment, casinos and games, family-friendly activities and
magazine created just for them. Since that time, figure magazine has become
exotic shore excursions, as well as these exclusive figure at Sea activities:
profitable and has grown rapidly. We’ve expanded to six issues per year,
• figure celebrity entertainment and speakers
and have sold over three million copies to date. figure is available in all of
• learning to be a plus-size model and walk the runway
in the figure fashion show
our stores and on select newsstands, nationwide.
• daily fitness classes
figure has established itself as an authority on women’s plus-size fashion and
also the magazine our customers seek out for information on the things that
interest them the most: health and beauty, home decorating, entertaining,
relationships, community service and social action.
• health and beauty seminars with figure experts — including
makeup application, and how to shop for your shape
at sea
page 18
I
2004 in Review
Operations
DIRECT SOURCING
SUPPLY CHAIN
To meet the demands of our customers, Charming Shoppes accesses
During 2004, we completed our first full year of consolidated
both the domestic wholesale and overseas apparel markets for our
distribution operations for Lane Bryant and Catherines Plus Sizes. Our
merchandise purchases. This allows us to maintain flexible lead times,
new center in White Marsh, Maryland was purchased in September 2002.
respond quickly to current fashion trends, and quickly replenish
In June 2003, we moved our distribution operations for our Catherines
merchandise inventory as necessary. In 2004, sourcing through our
brand from Memphis, Tennessee to White Marsh. Our Lane Bryant
own overseas organization accounted for approximately 21% of
distribution operations were transferred to White Marsh in January 2004.
our consolidated merchandise purchases.
This new facility has met Charming Shoppes’ major objectives for
supply chain— to improve efficiency by processing our products with
Our Direct Sourcing Division is headquartered in Hong Kong and
greater speed and accuracy, and to save costs in the process. The
manages the procurement of merchandise for our retail chains from
consolidated facility, a well located site in Baltimore County, has the
26 countries worldwide. We also operate satellite offices in Bangladesh,
ability to accommodate the Lane Bryant brand’s plan for store
India and Singapore. Our Direct Sourcing organization contributes to
growth to 1,000 stores.
Charming Shoppes’ profitability and works closely with our Merchandising
division to ensure the production and timely delivery of select merchandise
Our Greencastle, Indiana distribution facility, which has been ranked
for our stores.
as a leader by the Kurt Salmon Associates Logistics Benchmarking Study,
Charming Shoppes has earned recognition as a highly reputable organization
one billionth unit. This center services the apparel distribution needs of the
in Asia and around the world. Since we are in control of the production
Company’s 1,028-store Fashion Bug brand. The facility was purchased
recently celebrated an important milestone event— the shipment of its
process, we can maintain our emphasis on quality and consistency of fit.
We have implemented compliance programs for all overseas vendors with
respect to fair labor practices.
by Charming Shoppes in 1987, and at that time, the building occupied
500,000 square feet. Over the years, the Greencastle distribution center
has experienced significant growth, in both the size and technology
of the facility. Following two expansions, the facility has expanded
to 972,000 square feet. Since 1998, our Greencastle operations have
We operate our
own direct sourcing
operations in
(top to bottom):
Hong Kong
Singapore
Dhaka
New Delhi
continued to improve productivity efficiencies by nearly 40%, benefiting
from investments in supply-chain technology and processes.
2004 in Review
OUR CREDIT CARDS
I
page 19
By communicating each month to our card customer base, we engender
Charming Shoppes encourages sales at each of our brands through the
loyalty to and “top-of-mind-awareness” of the products and services we offer.
promotion of our proprietary credit cards. Our credit cards act as
We stand behind our products by offering our card customers information
promotional vehicles by engendering customer loyalty, creating a substantial
about sale events and other promotional offers that the base responds
base for targeted direct-mail promotion and encouraging incremental sales.
to at a rate of approximately two times the non-card customer rate.
Our card customers speak to our customer service representatives frequently
Through our credit program, we also offer our customers various loyalty
to update their account information and obtain information about
card programs. Customers that join these programs are entitled to
upcoming promotional events. We take the time with our card customers
numerous benefits, including discounts and rebates on purchases during
to make sure they are well informed about our products and services.
the membership period.
We find that the more responsive we can be to our best customers,
Our Fashion Bug credit card program accounted for approximately
28% of Fashion Bug retail sales in 2004. We control the policies and marketing
cadence to our card customer base that results in our credit customers
purchasing on average twice as much annually as non-card customers.
Our Lane Bryant and Catherines brands also offer customers the
convenience of proprietary credit card programs. During 2004, the
Lane Bryant credit card program accounted for approximately 29%
of Lane Bryant retail sales, and the Catherines credit card program
accounted for approximately 29% of Catherines’ retail sales.
•
We use our Proprietary
Credit Card programs
to drive higher customer sales
and enhance customer loyalty.
•
Our Fashion Bug Card
program is the 16th largest
proprietary credit card
program in the country.
•
3% of the entire female
population in the U.S.
holds our Fashion Bug Card.
the more loyalty we engender from them. We have specially designed
customer communication strategies to our card customers that give
our Company a competitive edge over other companies that outsource
credit. These strategies are especially important to our plus-size customers
who value the best in products and service from our stores.
Our credit infrastructure allows us to achieve the necessary economies
of scale in servicing while preserving the proprietary customer information
necessary for us to compete. For example, we achieve this synergy through
the credit issuance capabilities of our wholly-owned credit card bank,
Spirit of America National Bank. In addition, we fully securitize all of
our receivables through our Charming Shoppes Master Trust.
page 20
I
2004 in Review
Lane Bryant celebrates
A Rich History
2004 marked the 100th anniversary of Lane Bryant, the most recognized name in women’s plus-size apparel under
the Charming Shoppes umbrella. In celebration of this anniversary, Lane Bryant opened a store on 34th Street in midtown
Manhattan on April 15, 2004. The Company also celebrated the 100th anniversary of Lane Bryant by opening the
NASDAQ Stock Market® on April 29, 2004.
LANE BRYANT CELEBRATES OVER 100 YEARS
1900
Lena Bryant founded Lane Bryant in New York as the
1969
first women’s apparel retailer in America focusing on
The Lane Bryant chain grew to more than
100 stores, with sales of $200 million.
plus-sizes. Lena, born in Lithuania, became “Lane”
when a bank manager misspelled her name and she was
Lane Bryant continued to expand nationwide,
too timid about her awkward English to correct him.
offering a wide selection of fashion apparel,
exclusively in plus-sizes.
1904
The first Lane Bryant store opened on Fifth Avenue
in New York City.
2001
In August, Charming Shoppes acquired Lane Bryant,
America’s number-one women’s plus-size specialty
1915
Lane Bryant opened its first branch
apparel provider, with 651 stores.
retail store in Chicago.
2003
1923
Revenues for Lane Bryant, Inc. exceeded $5 million.
1951
Lena Bryant passed away at the age of 72,
Lane Bryant’s Web site, lanebryant.com,
began e-commerce activity in March.
2004
leaving her company to her sons.
top: NASDAQ®, April 29, 2004, middle, bottom: 34th Street Store, New York City
In April, Lane Bryant opened its flagship
store in Manhattan, celebrating more
than 100 years in business.
2004 in Review
Stores by State
TOTAL NUMBER OF STORES
BY STATE AND REGION
FB – FASHION BUG
LB – LANE BRYANT
(AS OF 1/29/05)
CHARMING SHOPPES, INC. STORES BY REGION (AS OF 1/29/05)
FB
C
LB
CSI
WEST
FB
C
LB
CONNECTICUT
21
4
10
35
ARIZONA
11
6
15
32
6
2
3
11
CALIFORNIA
38
36
81
155
MAINE
17
1
3
21
COLORADO
4
5
9
18
MARYLAND
33
10
20
63
IDAHO
5
1
1
7
MASSACHUSETTS
43
8
16
67
MONTANA
0
1
0
1
CSI
NEW HAMPSHIRE
18
0
4
22
NEVADA
4
6
6
16
NEW JERSEY
49
13
23
85
NEW MEXICO
4
1
3
8
75
22
40
137
OREGON
117
17
34
168
UTAH
NEW YORK
PENNSYLVANIA
RHODE ISLAND
7
2
2
11
VERMONT
7
0
1
8
393
79
156
628
TOTAL REGION
TOTAL REGION
SOUTH
WASHINGTON
WYOMING
10
7
7
24
2
0
8
10
16
12
16
44
2
0
0
2
96
75
146
317
FB
C
LB
CSI
MIDWEST
FB
C
LB
CSI
ALABAMA
3
12
11
26
ILLINOIS
57
30
40
127
ARKANSAS
2
4
4
10
INDIANA
49
15
17
81
10
6
7
23
8
4
5
17
FLORIDA
20
21
39
80
IOWA
GEORGIA
13
14
28
55
KANSAS
KENTUCKY
27
6
10
43
MICHIGAN
76
19
29
124
LOUISIANA
1
11
10
22
MINNESOTA
19
11
13
43
MISSISSIPPI
4
7
7
18
MISSOURI
27
10
17
54
12
21
23
56
NEBRASKA
2
3
3
8
OKLAHOMA
5
4
5
14
NORTH DAKOTA
0
2
3
5
SOUTH CAROLINA
2
10
10
22
OHIO
95
25
30
150
TENNESSEE
13
12
13
38
SOUTH DAKOTA
TEXAS
19
42
61
122
VIRGINIA
25
14
22
61
WEST VIRGINIA
15
3
3
21
TOTAL REGION
161
181
246
588
NORTH CAROLINA
0
1
1
2
35
10
9
54
TOTAL REGION
378
136
174
688
FB
C
LB
CSI
TOTAL STORES
1,028
471
722
2,221
TOTAL STATES
45
44
46
48
WISCONSIN
page 21
C – CATHERINES
CSI – CHARMING SHOPPES, INC.
NORTHEAST
DELAWARE
I
NORTHEAST
628 STORES
28% OF TOTAL
MIDWEST
688 STORES
31% OF TOTAL
WEST
317 STORES
14% OF TOTAL
SOUTH
588 STORES
27% OF TOTAL
TOTAL STORES
2,221
GROWTH OVER TIME
OVER THE LAST 10 YEARS, CHARMING SHOPPES’ NETWORK OF STORES HAS
NEARLY DOUBLED, TO 2,221 STORES. THE MAJORITY OF OUR EXPANSION
HAS BEEN IN THE SOUTH AND WEST REGIONS.
Year
1995
2000
2004
1,301
1,754
2,221 Total Stores
page 22
I
2004 in Review
Work &Community
In January 2005, Charming
Shoppes was again named
as one of the best companies
for female executives by
the National Association for
Female Executives. This is
the second consecutive year
that the company has been
recognized by NAFE as one
of the nation’s leaders.
WORKING AT CHARMING SHOPPES
and a mentorship program that encourages individuals to seek help and
We are always looking for passionate and self-motivated team players who
guidance from more experienced executives. In addition to our Open Door
are ready for a challenge. The Company’s formula for success is built around
approach, all of our brands, as well as our corporate offices, have in place
innovative merchandising and fashion designs, leading-edge technology and
regular “town-hall” style communication meetings, as well as smaller,
supply chain systems, and a strong customer service focus that reinforces
more intimate focus group style sessions to ensure our associates have
our reputation as America’s plus-size specialists.
ample opportunities to hear and learn about the Company.
Our stores are staffed by an outstanding group of store associates, and our
In January 2005, Charming Shoppes was again named as one of the best
exciting store designs present our customers a visually appealing environment
companies for female executives by the National Association for Female
in which to shop. Our rapidly growing e-commerce sites allow us to expand
Executives. This is the second consecutive year that the Company has
our assortments and reach customers beyond our geographic footprints.
been recognized by NAFE as one of the nation’s leaders.
Whether our customers shop in our stores or through the direct-to-consumer
channels, they can feel confident they have purchased items at a great
value that will make them look and feel their best!
At Charming Shoppes, we proudly recognize the value that our
associates bring to the business and as a team we look forward to an
exciting and challenging future.
As a company, we continually look for ways to make our business processes
more efficient and our associates more effective. In 2004, we expanded
our internal communication network through the addition of our intranet
sites and the creation of cross-functional innovation teams in each of our
brands, which serve as central gathering points for converting our associates’
ideas into action. We also performed an associate climate survey that created
a more formal vehicle for learning our associates’ opinions on a variety of
topics ranging from training and development, to their work environment,
DEDICATED TO OUR COMMUNITY
In addition to meeting the fashion needs of women, Charming Shoppes
is also committed to addressing and raising awareness of the many issues
that exist in the communities we serve. We believe it’s our responsibility
to give something back to the communities we serve, and we demonstrate
this philosophy through a number of programs designed to better the
lives of women, offer help to those in need, inspire community spirit
and truly make a difference.
2004 in Review
VOICES...ONE VOICE CAN LEAD TO A CHORUS FOR CHANGE
KEEPING KIDS WARM
Charming Shoppes’ commitment to community service is manifested in
Warming hearts and lives across America, the Keeping Kids Warm
the Voices campaign, which celebrates women’s leadership in grassroots
program finished its ninth exciting season of sharing in the Fall of 2004.
causes throughout the United States. Charming Shoppes launched Voices
The program is part of Charming Shoppes’ ongoing effort to give back
in 2002 to recognize remarkable women who raise their voices to
to local communities. The Company, in conjunction with its vendors
create positive change.
and suppliers, donates coats to elementary-school children in inner-city
locations. To date, Keeping Kids Warm has donated over 30,000 new
Since the campaign’s inception, the Company has received thousands of
coats and goodie bags to children in need.
essays nominating women who demonstrate extraordinary leadership in their
communities. Each year, the company chooses five winners from the essays
Keeping Kids Warm and Voices are just two of the many ways
received— from women who champion causes such as education, medical
Charming Shoppes demonstrates its commitment to families and children.
research, poverty relief and work with seniors and people with disabilities.
Through clothing and monetary donations, as well as awareness campaigns
In 2005, our five winners will receive a total of $100,000 in grants from
dealing with women’s and children’s issues, Charming Shoppes offers
the Company to further their work in their communities.
direct assistance and hopes to inspire community involvement in others.
As a family of neighborhood stores and a responsible corporate citizen,
Charming Shoppes feels this is the very least it can do for the
communities it serves.
To date, the Keeping Kids Warm program has helped the following communities:
CONNECTICUT
MARYLAND
NEW HAMPSHIRE
TENNESSEE
Bridgeport • Waterbury
Baltimore
Concord
Memphis
KENTUCKY
MASSACHUSETTS
NEW JERSEY
VIRGINIA
Evans • Grethel
Lynn • Springfield
Camden • Chesilhurst • Newark
Norfolk
ILLINOIS
MINNESOTA
NEW YORK
WISCONSIN
Springfield
Minneapolis
Rochester
Milwaukee
INDIANA
MICHIGAN
OHIO
Indianapolis
Detroit
Columbus • Cincinnati • Cleveland
MAINE
MISSOURI
PENNSYLVANIA
Portland • Springfield
St. Louis
Philadelphia • Pittsburgh
I
page 23
CHARMING SHOPPES’ BOARD OF DIRECTORS
WILLIAM O. ALBERTINI
JOSEPH L. CASTLE, II
YVONNE M. CURL
DORRIT J. BERN
CHARLES T. HOPKINS
KATHERINE M. HUDSON
DR. PAMELA S. LEWIS
KENNETH S. OLSHAN
ALAN ROSSKAMM
Former Executive
Vice President and
Chief Financial Officer
Bell Atlantic Global
Wireless, Inc.
Chairman of the
Board and Chief
Executive Officer
Castle Energy Corp.
Former Chief
Marketing Officer
Avaya, Inc.
Chairman
Former Managing
Partner
KPMG LLP,
Philadelphia
Lead Independent
Director
Former Chairman
of the Board
Brady Corporation
President
Queens University
of Charlotte
Former Chairman
and Chief
Executive Officer
Wells Rich
Greene BDDP
Chairman of the Board,
President and
Chief Executive Officer
Jo-Ann Stores, Inc.
CORPORATE
EXECUTIVE OFFICERS
CORPORATE
OFFICERS
DORRIT J. BERN
JAMES G. BLOISE
Chairman, President
and Chief Executive Officer
Senior Vice President
Supply Chain Management
JOSEPH M. BARON
DENIS F. GINGUE
Executive Vice President
and Chief Operating Officer
Senior Vice President
Chief Information Officer
MICHEL BOURLON
STEVEN R. WISHNER
Executive Vice President
Sourcing
Senior Vice President
Treasury, Investor Relations
and Business Development
Design: Creative Strategy Group, Inc. csg-design.com
ANTHONY A.
DESABATO, ESQ.
SUSAN BRINGHURST
WILLIAM P. MANCUSO
DAVID TOBABEN
Vice President
Distribution and Logistics
Vice President
Corporate Planning
and Allocation
BERNARD K. MULLEN
Vice President
Corporate Loss Prevention
EDWIN A. NEUMANN
Vice President
Business Services
LESLEY M. RINDOSH
Vice President
Quality Control/
Quality Assurance
Executive Vice President
Corporate and Labor
Relations, Business Ethics,
and Loss Prevention
Vice President
Quality Assurance/
Quality Control
Sourcing — Asia
KIRK R. SIMME
ERIC M. SPECTER
ROBERT M. CHESSEN
Executive Vice President and
Chief Financial Officer
Vice President
Corporate Human Resources
Vice President
Financial Planning and
Support
COLIN D. STERN, ESQ.
WILLIAM R. DAWSON
LAURIE WILLIAMS-FLEURY
Executive Vice President,
General Counsel and
Secretary
Vice President
Internal Audit
Vice President
Technical Design Services
ANDREW D. GALASSO
STEPHEN YEUNG
GALE H. VARMA
Executive Vice President
Human Resources
Vice President
Real Estate Finance
and Analysis
ERNA ZINT
NEAL J. GLUECK
Executive Vice President
Technical Design and
Quality Assurance/
Quality Control
JONATHON GRAUB
Vice President
Procurement and
Facilities Services
Executive Vice President
Store Operations
JOHN LEE
Vice President
Corporate Accounting
Vice President
General Merchandise
Manager
JEFFREY H. LISS
BEN H. BULL
Senior Vice President
Real Estate/Construction/
Store Design
JOHN J. SULLIVAN
Vice President
Corporate Controller
Vice President
Credit
KEITH D. SPIRGEL
Vice President
Sourcing — Asia
FASHION BUG
ELIZABETH A. WILLIAMS
President
MARY ANN BARR
Vice President
Divisional Merchandise
Manager — Intimate Apparel
and Accessories
LANE BRYANT
INDEPENDENT AUDITORS
LORNA E. NAGLER
Ernst & Young LLP
Philadelphia, Pennsylvania
President
ELIZABETH ACKLEY
Vice President
Human Resources
SUSAN C. CONNELL
Vice President
General Merchandise
Manager
Wear to Work — Sportswear
Vice President
General Merchandise
Manager Casual Sportswear
PHILIP S. BRUNONE
JOSEPH HASH
Vice President
Human Resources
Vice President
Stores
GARY F. CHEW
G. SCOTT GLASER
Vice President
General Merchandise
Manager
Vice President
Finance
JOSEPH J. KASSA
Vice President
Marketing
Vice President
General Merchandise
Manager Intimate Apparel
CARRIE KLEIN
LISA KUNZ
LINDA M. MADWAY, ESQ.
CATHERINES
PLUS SIZES
Vice President
Product Development
Vice President
Associate General Counsel
Vice President
Risk Management
and Taxation
DIANE M. PACCIONE
LARRY M. LOMBARDI
LINDA SHAPS
Vice President
Director of Stores
Vice President
Product Development
JON A. GOLDBERG
E. GLENN IRELAN
MARYELLEN
MACDOWELL
MICHAEL YOUNG
President
ROBERT J. BAKER
Vice President
Business Development
Vice President and
Chief Financial Officer
KATHLEEN H. LIEBERMAN,
ESQ.
LYNN GORE
Vice President
Associate General Counsel
and Assistant Secretary
Vice President
Marketing
THOMAS M. SMITH
Vice President
Associate General Counsel
Vice President
Divisional Merchandise
Manager — Plus
MELISSA A. NOVELL
Vice President
Planning and Allocations
CHARMING
INTERACTIVE
Vice President
General Merchandise
Manager
JOSEPH T. HARDIMAN
BRETT SCHNEIDER
ROBIN E. BASKIN
Vice President
Finance
Vice President
Internet Marketing
RACHEL A. UNGARO
CHARMING DIRECT
Vice President
Divisional Merchandising
Manager — Missy
American Stock Transfer
& Trust Company
New York, New York
1-800-937-5449
JEFFREY A. ELLIOTT
Vice President
Planning and Allocations
LOUIS BODOFSKY
TRANSFER AGENT
AND REGISTER
Vice President
Chief Technology Officer
STEPHEN S. MARKS
Senior Vice President
Direct-to-Consumer
EXECUTIVE OFFICES
450 Winks Lane
Bensalem, Pennsylvania 19020
FORM 10-K
A copy of the Company’s Annual
Report on Form 10-K, as filed
with the Securities and Exchange
Commission, is available to
stockholders without charge
upon written request:
Charming Shoppes, Inc.
Gayle M. Coolick
Director of Investor Relations
450 Winks Lane
Bensalem, Pennsylvania 19020
Quarterly reports
available upon request.
CHARMING SHOPPES, INC.
450 Winks Lane, Bensalem, PA 19020
www.charmingshoppes.com