EX-99.2 3 cibc2007slides.htm CIBC 2007 CONFERENCE SLIDES cibc2007slides.htm
 
EXHIBIT 99.2
 
Charming Shoppes, Inc.
CIBC World Markets 7th Annual
Consumer Growth Conference
July 10, 2007
 
 

 
2
Forward-Looking Statements
 
This presentation contains certain forward-looking statements concerning the Company's operations,
performance, and financial condition. 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: the failure to implement the Company’s
business plan for increased profitability and growth in the Company’s retail stores and
direct-to-consumer segments, the failure to successfully implement the Company’s expansion of
Cacique through new store formats, the failure to successfully implement the Company’s integration
of operations of, and the business plan for, Crosstown Traders, Inc., adverse changes in costs vital
to catalog operations, such as postage, paper and acquisition of prospects, declining response rates
to catalog offerings, failure to maintain efficient and uninterrupted order-taking and fulfillment in our
direct-to-consumer business, changes in or miscalculation of fashion trends, extreme or
unseasonable weather conditions, economic downturns, escalation of energy costs, a weakness in
overall consumer demand, failure to find suitable store locations, the ability to hire and train
associates, trade and security restrictions and political or financial instability in countries where
goods are manufactured, the interruption of merchandise flow from its centralized distribution
facilities, competitive pressures, and the adverse effects of natural disasters, war, acts of terrorism or
threats of either, 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 February 3, 2007 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.
 
 

 
3
*Management Estimate
A Multi-Brand, Multi-Channel Retailer
Focused On Special Sizes With $3.1 Billion
In Annual Sales

Our Goal Is To Grow To $4 Billion* In
Annual Sales Over The Next Several Years
While Expanding Operating Margins
 
 

 
4
Our Differentiated
Retail Store Brands
 
 

 
5
Selected Catalog Titles
 
 

 
6
Our Strategy
Leveraging Our Brands Through
Multiple Channels
Shifting The Mix To Higher
Operating Margin Businesses
 
 

 
7
Lane Bryant Retail Store Growth
>
Growing The Brand From 796 To 1,000 Stores*
>
Focused On Strip And Lifestyle Centers
>
Our Largest Brand With Highest Operating
Margins
>
300 Lane Bryant Intimate Apparel Stores*
Grow The Outlet Channel
>
90 Lane Bryant Outlet™ Stores In Operation,
Growing to 150 Stores*
Launch The Lane Bryant Catalog
*Management’s Estimate Of Multi-Year Rollout Opportunity
Expanding The Lane Bryant Brand
 
 

 
8
 
 

 
9
Our New Lane Bryant Store Concept Is The
Lane Bryant Cacique Intimate Apparel Store
>
80 Side By Side Stores Currently In Operation,
Growing To 300* Stores
>
2,000 Square Feet Dedicated To Intimates, With
Its Own Front Entrance
>
Sales Per Square Foot Increases Of 20% - 25%
At Remodeled Stores
*Management’s Estimate Of Multi-Year Rollout Opportunity
Growing The Top Line While Expanding
The Operating Margin
 
 

 
10
 
 

 
11
 
 

 
12
Current
With 1,000* Lane Bryant
Store Goal Accomplished
*Management’s Estimate Of Multi-Year Rollout Opportunity
Increasing Penetration Of Lane Bryant
Intimate Apparel Stores, Primarily In Strip Centers
 
 

 
13
Lane Bryant Outlet™
>
90 Lane Bryant Outlet Stores In Operation,
Growing to 150 Stores*
>
Operates At Revenue And Operating
Margin Levels That Exceed Those Of Lane
Bryant's Average Retail Stores
Growing The Top Line While Expanding
The Operating Margin
*Management’s Estimate Of Multi-Year Rollout Opportunity
 
 

 
14
 
 

 
15
  The Lane Bryant Catalog
Today Produces Annual
Revenues Of More Than
$300 Million*
 America’s Largest Women’s
Plus Apparel Catalog
Reversion Of The Trademark
Occurs In October 2007
Lane Bryant Catalog Today
*Management Estimate
Lane Bryant Catalog Licensed And Operated
by Redcats USA
 
 

 
16
The Lane Bryant Catalog
>
We Plan To Launch Our Lane Bryant Catalog
During November 2007
>
Investments During Our 4th Quarter Include:
Marketing
Internet, Media
Credit Customer Acquisition
>
Leverages The Operations And Infrastructure Of
Crosstown Traders
Growing The Top Line While Expanding
The Operating Margin
 
 

 
17
*Management Estimate
The Lane Bryant Catalog Credit Card
Following The Reversion
Of The Lane Bryant
Catalog Trademark, We
Will Launch A Credit
Program For Our Lane
Bryant Catalog
Pre-Approved Credit
Solicitations Planned To
Approximately 2 Million*
Households
 
 

 
18
Net Sales Projected To Grow By 3% - 4%, In A Range
Of $785 - $795 Million
>
Includes Flat To Low Single-digit Percentage Decreases
In Consolidated Comparable Store Sales
Decreased Traffic Levels Experienced By Each Of The
Company's Retail Store Brands
Diluted Earnings Per Share Projected To A Range Of
$0.18 - $0.20
Increase In Promotions And Markdowns Of Spring
Merchandise, As We Prepare For 2nd Half Initiatives
2nd Quarter Business Projections
 
 

 
19
Merchandise And
Marketing Initiatives For
The Fall Season
 
 

 
20
 
 

 
21
Right Fit By Lane Bryant™
Is The Result Of One Of The
Most Extensive Sizing
Studies Every Conducted By
A Major Retailer
A Breakthrough
Collaboration Of
Technology, Fashion
And Fit
 
 

 
22
Our Efforts Have Led
Us To Define Three
Basic Fits That Fit
And Flatter Like Never
Before
 
 

 
23
Right Fit By Lane Bryant™
Store Presentation
 
 

 
24
Right Fit By Lane Bryant™

Marketing Campaign
A Comprehensive Multi-Channel Media Mix Campaign,
Including:
>
National Magazine Advertising
>
Compelling Incentives For Jean Try-Ons
>
Dedicated Website
>
Direct And E-mail Campaign
The Campaign Aids In Communicating Lane Bryant’s
Position As The Premier Destination For Plus-Size
Women’s Fashion And Innovation
 
 

 
25
Working Drafts
Conversion Of The Lane Bryant
Retail Credit Card File During
The 4th Quarter
 
 

 
26
*Management Estimate
Conversion Of The Lane Bryant
Retail Credit Card File
We Will Re-Issue 2.5 - 2.8 Million* Lane
Bryant Retail Credit Cards During
November 2007
Introduce Loyalty Program
Increases Sales And Penetration Of Lane
Bryant Credit Card
Supports All Lane Bryant Brand Channels
 
 

 
27
Introduction Of
Exclusive Brands
 
 

 
28
Represents A
Lifestyle With
Universal Appeal
For Up-to-date
Women
 
 

 
29
Target Age Range:
24-55
 
 

 
30
Available In Plus
And Misses
Sportswear
Emphasis On
Denim, Sweaters
And Knits
 
 

 
31
Marketing Campaign
National Magazine
Advertising
 
 

 
32
Marketing Campaign
Direct Mail
Campaign
 
 

 
33
Fashion Bug - Building Compelling
Brands For Our Customer
Additional New Brands At
Fashion Bug
>
Nationally Recognized
Brands
>
Adds Credibility And Drives
Traffic To The Store
>
Supports New Customer
Growth
 
 

 
34
Financial Review
 
 

 
35
*Management Estimates
Fiscal Year 2008 Financial
Projections*
Our Fiscal Year 2008 Projection Represents A 3% - 4% Increase
In Net Sales In A Range Of $3.15 To $3.20 Billion, Compared To
Net Sales Of $3.07 Billion For The Period Ended February 3,
2007 (53 Weeks)
Diluted Earnings Per Share Are Projected To A Range Of $0.80 -
$0.82, Compared To Diluted Earnings Per Share Of $0.81 Last
Year
Fiscal Year 2008 Projection Includes An Initial Investment Of
Approximately $10 Million Pretax ($6.4 Million After Tax, Or $0.05
Per Diluted Share) Related To The Launch Of The Lane Bryant
Catalog During The Fourth Quarter Of Fiscal Year 2008
 
 

 
36
Issuance Of 1.125% $275 Million Convertible Notes
Due 2014 Completed On April 30, 2007
4.75% $150 Million Senior Convertible Notes Due
2012 Called For Redemption On June 4, 2007,
Resulting In Conversion To 15 Million Shares
New Convertible Debt Issuance
 
 

 
37
10.3 Million Shares Repurchased At A Value Of
$131 Million On April 30, 2007
Additional Share Repurchases Are Planned At The
High End Of A Range Of $80 - $100 Million During
The Current Fiscal Year
Share Repurchase Program
 
 

 
38
Selected Balance Sheet Data
($ in Millions)
5/5/07 2/3/07 1/28/06
Cash and                 $241              $146                 $150
Investments
Long Term Debt       $279              $192                 $207   
Total Assets          $1,835            $1,702             $1,567
 
 

 
39
$3.1 Billion
$4 Billion*
*Management Estimate
Lane Bryant Brand Contributing More Than
45% Of Total Revenues
Shifting The Mix To Higher
Operating Margin Businesses
 
 

 
OUTLET
CATALOG
$4 Billion
$200 Million
$700 Million
MULTI-BRAND
MULTI-CHANNEL
RETAILER
BRICKS &
MORTAR
$2.9 Billion
E-COMMERCE
$300 Million
Our Financial Plans* Include:
*Management Estimate
 
 

 
41
*Management Estimates
Summary*
Based On Our Growth Opportunities And Building On
Our Multi-Channel Strategy, Our Financial Plans Over
The Next Several Years Include The Following
Projections:
>
CAGRs In The Mid-To-High Single Digits For Net Sales
>
CAGRs In The Low-To-Mid Teens For Net Income
>
EBIT Margins Growing To Over 7%, On The Higher
Revenue Base
Operating Margin Expansion On A Growing Top Line
Maintain Strong Liquidity From Internally Generated Free
Cash Flow and Available Bank Credit Line
 
 

 
42
Addendum
 
 

 
43
Retail Stores
E-commerce
Catalog
Outlet
   
 
 
       
       
 
 
   
       
A Multi-Brand, Multi-Channel Retailer
 
 

 
44
Single Channel
Customer
E-com First Customers
Are Worth Almost
3x More Than A Single
Channel Shopper
Retail First Customers
Are Worth 4x More 
Than A Single Channel
Shopper After 3 Years
*Source: Forrester Research (WSJ 09/03/04) and Charming Shoppes Research
Multi-Channel Customers
Have A Higher Annual Spend Than
Single-Channel Customers
 
 

 
45
Our Differentiated Retail
Store Brands
 
 

 
46
Classic
Fashion
Low-moderate
Moderate/
Mainstream
Better
The Leader In
Specialty Plus-Sizes
 
 

 
47
Our Retail Store Brands
 
 

 
48
Our Retail Stores
 
 

 
49
The Women’s Plus Apparel Market Represented
Approximately $18.5 Billion1 In Sales During 2006
The Average Size Of The American Woman Is 141
Plus Apparel Is Continuing To Outpace The Overall
Women’s Apparel Market1
Charming Shoppes’ Plus Apparel Brands Cater To
More Than Half Of The Adult Female Population2
(1) Derived From NPD Group Data; (2) Source: AOA Overweight Prevalence
Catering To A Growing
Demographic In Special Sizes
 
 

 
50
Lane Bryant Holds The #1
Market Position* In Women’s
Specialty Plus Apparel
Lane Bryant Is Our Most
Profitable Business, With The
Highest Sales Per Square
Foot Productivity
*Derived From NPD Group Data
Expanding The Leading Brand
In Plus-Sizes
 
 

 
51
www.lanebryant.com
She Is 20-45 Years Old
She Loves Fashion
She Is A Contemporary
Woman Of Many Lifestyles -
Work, Casual, Active
Key Differentiators:
Fashion and Lifestyle
 
 

 
52
Lane Bryant Is The Nation’s Leading Brand In
Women’s Plus-Size Fashion Apparel
Lane Bryant Is The Most Recognized Name In
Women’s Plus-Size Clothing
The Lane Bryant Brand Is 100 Years Strong
Lane Bryant, In The Mind Of The Consumer,
“Means” Plus-Sizes
 
 

 
53
#1 Market Share In Specialty Plus-Size
Intimate Apparel*
Lane Bryant’s Cacique® Intimate
Apparel Brand Is The Leading Brand in
Specialty Plus-Sizes*
Leading Market Share In Plus
Intimate Apparel
*Source: Derived from NPD Group Research
 
 

 
54
Intimate Apparel Brands
 
 

 
55
*Source: Derived from NPD Group Research
Leading Market Share In Denim
We Hold The #1 Market Share In
Specialty Plus-Size Denim*
Lane Bryant’s Venezia® Private Label
Is The Leading Jean In Specialty
Plus-Sizes*
 
 

 
56
®
®
®
by l.a. blues®
Denim Brands
 
 

 
57
She Is Mainstream, 20-54
She Is Value-Minded
She Often Has A
Blue-Collar Job
She LOVES Selection
She is Fashion Right
Key Differentiators:
Value and Fashion
www.fashionbug.com
 
 

 
58
www.catherines.com
She’s Our Baby-Boomer, 40-65
She Considers FIT Critical
She is a Career Woman
Her Fashion Tastes Tend
Toward Classic Apparel
Offering Plus-Sizes, Petite
Plus-Sizes, and Extended
Plus-Sizes
Key Differentiators:
Fit and Special Sizes
 
 

 
59
www.petitesophisticate.com
She’s 35 - 55 Years Old
She Considers FIT Critical
Her Fashion Tastes Tend
Toward Updated Classic And
Contemporary Apparel
Offering Petite-Sizes
In 0p - 14p For
Women 4’11” To 5’4”
Key Differentiators:
Fit and Special Sizes
 
 

 
60
figure - 6 Issues A Year, And
A Book!


To Date, 7 Million Copies
Sold, With $17 Million Magazine
Copy Sales Revenue

figure Initiatives Enhance
Our Branding Power
 
 

 
61
Intellifit
 
 

 
62
 
 

 
63
Crosstown Traders’ Operations
Headquartered In Tucson, AZ, With Distribution
Centers In Tucson, Wilmington, NC, And Central
Wisconsin
Crosstown Traders Offers Proprietary Credit
Products To Its Customer Base, And
Direct-to-Consumer Shopping Channels For Both
Catalog And E-commerce
850 Call Center Seats
1,400 Full Time And 2,000 Seasonal Employees
 
 

 
64
Selected Catalog Titles
 
 

 
65
The Apparel Group’s 
Largest Catalog
“Head-to-Toe” Focus
Sportswear, Ready to Wear, 
Intimate Apparel, Shoes 
and Accessories
Large Selection of Styles, 
Sizes, and Colors
Traditional, Comfortable, 
Easy-Care Styles
oldpueblotraders.com
 
 

 
66
Sleepwear, Shapewear,
Loungewear, Active Wear,
and Special Needs Items
Designed to Expand Intimate 
Apparel Selections in 
Other Publications
Targets Conservative Customer
Offers Quality, Comfort, and 
Traditional Styling
Sizes for the Average to Full Figure
intimateappeal.com
 
 

 
67
Ethnic Appeal
Working Blue Collar
Sportswear, Ready to Wear,
Intimate Apparel, Shoes,and
Accessories
Specialty Catalog That Offers
Customers Ease in Finding Larger
Sizes That Are Difficult to Find in
Other Catalogs
regaliaonline.com
 
 

 
68
Current Looks Without 
 Being Fashion Forward
Mainly Private Label
Targeted to the Value
Conscious Customer
Office and Multi-purpose
Clothing in Easy Care
Fabrics with an Easy Fit
bedfordfair.com
 
 

 
69
Price-Conscious Customers
“Clothes That Do 
More For Less”
Staple Items With 
Classic Styling For 
The Polished, Mature Lady
willowridgecatalog.com
®
 
 

 
70
Targets Moderate Income Women 
Who Want to be Noticed and
Are Attuned to Current Fashion
Maximum Attitude and Sexy
Traditional Catalog Categories:
Suits, Dresses, and Sportswear
“Runway Fashions at Runaway Prices”
Offers an Array of Leather, Suede, and
Outerwear
All Size Ranges and Larger Misses
lew-magram.com
®
 
 

 
71
Targets the Higher Income,
Comfortably Retired, 
Suburban Woman
Wide Range of Daytime and 
Evening Looks Plus
Loungewear, Shoes, and
Accessories
Head-to-Toe Coordination 
Is Key
All Size Ranges and Larger Misses
brownstone-studio.com
 
 

 
72
Classic Styling
Unique Sophisticated Details
Flattering and Feminine
Rich Colors and Texture
Casual and Versatile
shopthebay.com
 
 

 
73
Casual and Dressy Footwear
Traditional and Contemporary Styles
Designed to Expand Footwear
Selection in Other Publications
Some Accessory Items
Hats and Handbags
All Sizes and Widths
4-13, N, M, W to WWWW
cowardshoe.com
 
 

 
74
Casual and Dressy Footwear
Traditional and Contemporary
Styles
bedfordfair.com
®
 
 

 
Charming Shoppes, Inc.
CIBC World Markets 7th Annual
Consumer Growth Conference
July 10, 2007