Charming Shoppes Reports Third Quarter Results; Updates Earnings Outlook for Fis

Three Months Ended November 3, 2007

For the three months ended November 3, 2007, the Company reported a netloss of $3.6 million, or $(0.03) per diluted share, compared to net income of$19.4 million or $0.15 per diluted share for the three months ended October28, 2006. The year over year decline in operating results is primarilyattributable to lower than planned sales, a decline in gross margins andnegative expense leverage on sales. During the quarter, the Companyexperienced downward trending store traffic levels at each of its brands, andas a result, the Company experienced a lower sell-through of Fall merchandise.In response, the Company was more aggressive in clearing seasonal inventory,leading to deeper than planned markdowns. As detailed below, under "Purchaseof Lane Bryant Credit Card Portfolio", operating results for the three monthsended November 3, 2007 include a net pre-tax benefit of approximately $4.7million related to the Company's purchase of the Lane Bryant credit cardportfolio on November 1, 2007.

Net sales for the three months ended November 3, 2007 decreased 4% to$669.4 million, compared to net sales of $695.3 million for the three monthsended October 28, 2006. Net sales for the Company's Retail Stores segmentwere $588.8 million during the three months ended November 3, 2007, comparedto $615.3 million during the three months ended October 28, 2006. Thisdecrease of 4% was driven by net sales decreases at each of the Company'sretail brands, partially offset by the addition of the outlet business and netsales increases at each of the Company's retail brands related e-commercebusinesses. Consolidated comparable store sales for the Company's RetailStores segment decreased 8% during the three months ended November 3, 2007,compared to a 1% increase during the three months ended October 28, 2006. Netsales for the Company's Direct-to-Consumer segment were $79.0 million duringthe three months ended November 3, 2007, compared to $79.8 million during thethree months ended October 28, 2006, a decrease of 1%. In comparison to thefirst half of the year the decline in sales at the Company's Direct toConsumer segment showed marked improvement during the third quarter.

Dorrit J. Bern, Chairman, Chief Executive Officer and President ofCharming Shoppes, Inc., said, "Our disappointing performance during our thirdquarter was reflective of downward traffic trends, which both we and ourindustry experienced. Our Fall selling season had a very slow start,particularly at our Lane Bryant brand, and we expect the holiday season to behighly promotional throughout our industry. Given this, we are executing on anumber of near-term actions to enable us to manage through this difficultretail environment. Those actions, which we detailed in an announcement onNovember 8, 2007, include enhancements in merchandise and marketing at ourretail brands, improvements at our catalog businesses, and the introduction ofa loyalty and rewards credit card program for our Lane Bryant customers.Additionally, we are streamlining the operations of our organization, reducingexpenses, decreasing the current year's capital budget and reducing inventorylevels for the remainder of the year.

"Despite the near term difficulties we have been experiencing, we havebeen pleased with a number of recent initiatives, including the launch of theRight Fit campaign, which supports our new core denim and career pantassortments at our Lane Bryant and Catherines Plus Sizes brands. We haveexperienced a significant moderation in the decline of our core catalog salesand response rates during the third quarter, as a result of new creative,marketing, and product offerings for many of our titles. Additionally, at theend of our third quarter, we launched the Lane Bryant Woman catalog andwebsite."

Purchase of Lane Bryant Credit Card Portfolio

Prior to November 1, 2007, a third party provided a proprietary creditcard accounts receivable facility for the Company's Lane Bryant retail andoutlet stores. On November 1, 2007, the Company purchased the Lane Bryantcredit card portfolio from the third party at par value and subsequentlysecuritized the receivables in the purchased portfolio resulting in therecognition of a pre-tax gain of approximately $6.8 million. In addition, theCompany incurred expenses of approximately $2.1 million in connection with theissuance of approximately 2.3 million new Lane Bryant proprietary credit cardsto its retail customer base during the three months ended November 3, 2007.This resulted in a net pre-tax benefit of approximately $4.7 million, whichhas been recorded as a reduction to selling, general and administrativeexpenses for the third quarter ended November 3, 2007.

Nine Months Ended November 3, 2007

For the nine months ended November 3, 2007, the Company reported netincome of $41.0 million, or $0.32 per diluted share, compared to net income of$84.0 million or $0.63 per diluted share for the nine months ended October 28,2006. The prior year's results included pre-opening operating expenses ofapproximately $7.8 million pre tax, ($5.0 million after tax or $0.04 perdiluted share) related to the Company's opening of 76 Lane Bryant Outlet(TM)stores. The year over year decline in net income is primarily attributable toa decline in gross margins and negative expense leverage on lower than plannedsales. Additionally, the Company experienced lower response rates and salesin its apparel-related catalogs. As a result, the Company was more aggressivein clearing seasonal inventory, leading to deeper than planned markdowns. Asdetailed above, under "Purchase of Lane Bryant Credit Card Portfolio",operating results for the nine months ended November 3, 2007 include a netpre-tax benefit of approximately $4.7 million related to the Company'spurchase of the Lane Bryant credit card portfolio on November 1, 2007.

Net sales for the nine months ended November 3, 2007 increased 1% to $2.23billion, compared to net sales of $2.19 billion for the nine months endedOctober 28, 2006. Net sales for the Company's Retail Stores segment were$1.96 billion during the nine months ended November 3, 2007, compared to $1.91billion during the nine months ended October 28, 2006. This increase of 3%was driven by the addition of the outlet business, as well as net salesincreases at each of the Company's retail brands related e-commercebusinesses. Consolidated comparable store sales for the Company's RetailStores segment decreased 4% during the nine months ended November 3, 2007,compared to a 1% increase during the nine months ended October 28, 2006. Netsales for the Company's Direct-to-Consumer segment were $259.0 million duringthe nine months ended November 3, 2007, compared to $279.6 million during thenine months ended October 28, 2006, a decrease of 7%. The decline in sales isprimarily attributable to a decline in response rates from the Direct-to-Consumer core customer mailing list.

    Comparable store sales by retail brand for the three and nine months endedNovember 3, 2007, were:                                         Three Months            Nine Months                                         Ended 11/3/07           Ended 11/3/07    Lane Bryant Stores(1)                     -9%                     -5%    Fashion Bug Stores                        -7%                     -3%    Catherines Stores                         -6%                     -1%    Consolidated Retail Store Brands          -8%                     -4%    (1) Includes Lane Bryant Outlet Stores

Net sales by brand for the three and nine months ended November 3, 2007and October 28, 2006 were:

                        Three Months  Three Months  Nine Months  Nine Months                            Ended         Ended       Ended        Ended                         11/3/07 ($   10/28/06 ($   11/3/07 ($   10/28/06 ($                         in millions) in millions)  in millions) in millions)    Lane Bryant(1)          $279.7       $287.0       $907.5       $845.2    Fashion Bug             $221.6       $240.7       $761.8       $789.2    Catherines               $82.2        $85.7       $276.3       $276.2    Direct to Consumer       $79.0        $79.8       $259.0       $279.6    Other (2)                 $6.9         $2.1        $20.4         $3.4    Consolidated Net Sales  $669.4       $695.3     $2,225.0     $2,193.6    (1) Includes Lane Bryant Outlet Stores;    (2) Includes Petite Sophisticate and Petite Sophisticate Outlet Stores

Providing an update on the Company's share repurchase plan, Bern said, "Wehave continued to be active under our existing share repurchase program,acquiring an additional 10 million shares during the third quarter, bringingour year to date repurchases to approximately 22 million shares."

Updated Outlook for the Fourth Quarter and Fiscal Year ending February 2,2008

For the 13-week period ending February 2, 2008, the Company has updatedprojections for diluted earnings per share to a loss in the range of $(0.06) -$(0.08), compared to diluted earnings per share of $0.19 for the corresponding14-week period ended February 3, 2007. This projection includes pre-taxcharges of $5.4 million ($3.4 million after tax, or $0.03 per diluted share)related to the Company's relocation of its Catherines Plus Sizes Memphis, TNoperations to its Bensalem, PA offices, as announced on November 8, 2007.This projection also includes an initial pre-tax investment of approximately$10 million ($6.4 million after tax, or $0.05 per diluted share) related tothe launch of the Lane Bryant catalog. The Company's projection for the 13-week period includes net sales in the range of $795 to $805 million, comparedto net sales of $874 million for the 14-week period ended February 3, 2007.The Company's projection assumes high single digit percentage decreases inconsolidated comparable store sales for the Company's Retail Stores segment,compared to a 1% consolidated comparable store sales decrease in the prioryear.

For the 52-week fiscal year ending February 2, 2008, the Company hasupdated projections for diluted earnings per share in the range of $0.24 -$0.26, compared to diluted earnings per share of $0.81 for the 53-week periodended February 3, 2007. This projection includes pre-tax charges of $5.4million ($3.4 million after tax, or $0.03 per diluted share) related to theCompany's relocation of its Catherines Plus Sizes Memphis, TN operations toits Bensalem, PA offices, as announced on November 8, 2007. This projectionalso includes an initial pre-tax investment of approximately $10 million ($6.4million after tax, or $0.05 per diluted share) related to the launch of theLane Bryant catalog. The Company's projection for the 52-week period includesnet sales in the range of $3.02 to $3.03 billion, compared to net sales of$3.07 billion for the 53-week period ended February 3, 2007. The Company'sprojection assumes mid single-digit percentage decreases in consolidatedcomparable store sales for the Company's Retail Stores segment, compared to a1% consolidated comparable store sales increase in the prior year.

Charming Shoppes, Inc. will host its third quarter earnings conferencecall today at 9:15 am Eastern time. To listen to the conference call, pleasedial 877-407-8293 approximately 10 minutes prior to the scheduled event. Theconference call will also be simulcast at. Thegeneral public is invited to listen to the conference call via the webcast orthe dial-in telephone number.

This press release, a transcript of prepared conference call remarks, andcertain other financial and statistical information will be available, priorto today's conference call, on the Company's corporate website, at. Anaudio rebroadcast of the conference call will be accessible at,following the live conference.

The conference call will be recorded on behalf of Charming Shoppes, Inc.and consists of copyrighted material. It may not be re-recorded, reproduced,transmitted or rebroadcast, in whole or in part, without the Company's expresswritten permission. Accessing this call or the rebroadcast constitutesconsent to these terms and conditions. Participation in this call serves asconsent to having any comments or statements made appear on any transcript,broadcast or rebroadcast of this call.

At November 3, 2007, Charming Shoppes, Inc. operated 2,453 retail storesin 48 states under the names LANE BRYANT®, FASHION BUG®, FASHION BUGPLUS®, CATHERINES PLUS SIZES®, LANE BRYANT OUTLET(TM), and PETITESOPHISTICATE OUTLET(TM). During the nine months ended November 3, 2007 theCompany opened 100, relocated 52, and closed 25 retail stores. The Companyended the period with 1,004 Fashion Bug and Fashion Bug Plus stores, 923 LaneBryant and Lane Bryant Outlet stores, 471 Catherines stores, and 55 PetiteSophisticate and Petite Sophisticate Outlet stores, comprising approximately16,285,000 square feet of leased space. Apparel, accessories, footwear andgift catalogs, including the following titles, are operated by CharmingShoppes' Crosstown Traders: Old Pueblo Traders, Bedford Fair, Willow Ridge,Lew Magram, Brownstone Studio, Intimate Appeal, Monterey Bay Clothing Company,Coward Shoe and Figi's. Please visit for additionalinformation about Charming Shoppes, Inc.

This release contains and the Company's conference call will containcertain forward-looking statements concerning the Company's operations,performance, and financial condition. Such forward-looking statements aresubject to various risks and uncertainties that could cause actual results todiffer materially from those indicated. Such risks and uncertainties mayinclude, but are not limited to: the failure to effectively implement theCompany's plans for consolidation of the Catherines Plus Sizes brand, a neworganizational structure and enhancements in the Company's merchandise andmarketing, the failure to generate a positive response to the Company's newLane Bryant catalog and the Lane Bryant credit card program, the failure toimplement the Company's business plan for increased profitability and growthin the Company's retail stores and direct-to-consumer segments, the failure tosuccessfully implement the Company's expansion of Cacique through new storeformats, the failure of changes in management to achieve improvement in theCompany's competitive position, the failure to successfully implement theCompany's integration of operations of, and the business plan for, CrosstownTraders, Inc., adverse changes in costs vital to catalog operations, such aspostage, paper and acquisition of prospects, declining response rates tocatalog offerings, failure to maintain efficient and uninterrupted order-taking and fulfillment in our direct-to-consumer business, changes in ormiscalculation of fashion trends, extreme or unseasonable weather conditions,economic downturns, escalation of energy costs, a weakness in overall consumerdemand, failure to find suitable store locations, increases in wage rates, theability to hire and train associates, trade and security restrictions andpolitical or financial instability in countries where goods are manufactured,the interruption of merchandise flow from the Company's centralizeddistribution facilities, competitive pressures, and the adverse effects ofnatural disasters, war, acts of terrorism or threats of either, or other armedconflict, on the United States and international economies. These, and otherrisks and uncertainties, are detailed in the Company's filings with theSecurities and Exchange Commission, including the Company's Annual Report onForm 10-K for the fiscal year ended February 3, 2007 and other Company filingswith the Securities and Exchange Commission. Charming Shoppes assumes no dutyto update or revise its forward-looking statements even if experience orfuture changes make it clear that any projected results expressed or impliedtherein will not be realized.

                           CHARMING  SHOPPES, INC.                                 (Unaudited)                                                           3rd Quarter                                        3rd Quarter          Ended                                           Ended   Percent  October  Percent    (in thousands, except       Percent   November   of        28,     of     per share amounts)         Change    3, 2007  Sales(a)  2006(b) Sales(a)    Net sales                    (3.7)%  $669,389  100.0 %  $695,278  100.0 %    Cost of goods sold,     buying, catalog and     occupancy                    1.2     486,519   72.7     480,818   69.2    Selling, general, and     administrative               2.5     187,996   28.1     183,435   26.4        Total operating expenses  1.5     674,515  100.8     664,253   95.5    Income/(loss) from     operations                (116.5)     (5,126)  (0.8)     31,025    4.5    Other income, principally     interest                    29.5       2,686    0.4       2,074    0.3    Interest expense            (37.7)     (2,206)  (0.3)     (3,540)  (0.5)    Income/(loss) before     income taxes              (115.7)     (4,646)  (0.7)     29,559    4.3    Income tax     provision/(benefit)       (110.6)     (1,078)  (0.2)     10,202    1.5        Net income/(loss)      (118.4)%   $(3,568)  (0.5)%   $19,357    2.8 %    Basic net income/(loss)     per share                             $(0.03)             $0.16    Weighted average shares     outstanding                          121,196            122,586    Net income/(loss) per     share, assuming dilution              $(0.03)             $0.15    Weighted average shares     and equivalents     outstanding                          121,196            139,932    (a) Results do not add due to rounding.    (b) Certain 2006 amounts have been reclassified to conform with current-        year presentation.                                                          Nine Months                                        Nine Months          Ended                                           Ended   Percent  October   Percent    (in thousands, except       Percent   November   of     28, 2006    of     per share amounts)         Change    3, 2007  Sales(a)  (b)(c)   Sales(a)    Net sales                     1.4% $2,225,026  100.0% $2,193,553  100.0 %    Cost of goods sold,     buying, catalog and     occupancy                    4.5   1,584,048   71.2   1,516,490   69.1    Selling, general, and     administrative               6.2     574,885   25.8     541,468   24.7    Total operating     expenses                     4.9   2,158,933   97.0   2,057,958   93.8    Income from operations      (51.3)     66,093    3.0     135,595    6.2    Other income,     principally interest        20.0       7,787    0.3       6,488    0.3    Interest expense            (27.8)     (8,287)  (0.4)    (11,475)  (0.5)    Income before income     taxes                      (49.8)     65,593    2.9     130,608    6.0    Income tax provision        (47.3)     24,584    1.1      46,627    2.1    Net income                  (51.2)%   $41,009    1.8%    $83,981    3.8 %    Basic net income per     share                                  $0.33              $0.69    Weighted average shares     outstanding                          122,688            122,174    Net income per share,     assuming dilution                      $0.32              $0.63    Weighted average shares     and equivalents     outstanding                          130,840            139,571    (a) Results do not add due to rounding.    (b) Includes results from Outlet stores, which began operations in July        2006.    (c) Certain 2006 amounts have been reclassified to conform with current-        year presentation.                   CHARMING SHOPPES, INC. AND SUBSIDIARIES                    CONDENSED CONSOLIDATED BALANCE SHEETS                                                      November 3,  February 3,    (In thousands, except share amounts)                 2007         2007                                                      (Unaudited)    ASSETS    Current assets    Cash and cash equivalents                           $36,389     $143,838    Available-for-sale securities                        26,919        1,997    Accounts receivable, net of allowances     of $1,440 and $5,083                                 3,559       33,366    Investment in asset-backed securities               113,402       60,643    Merchandise inventories                             498,196      429,433    Deferred advertising                                 32,130       21,707    Deferred taxes                                        5,232        4,469    Prepayments and other                               145,061      145,385        Total current assets                            860,888      840,838    Property, equipment, and leasehold     improvements - at cost                           1,095,772      996,430    Less accumulated depreciation and amortization      630,414      573,984        Net property, equipment, and         leasehold improvements                         465,358      422,446    Trademarks and other intangible assets              247,171      249,490    Goodwill                                            152,811      153,370    Other assets                                         68,252       44,798    Total assets                                     $1,794,480   $1,710,942    LIABILITIES AND STOCKHOLDERS' EQUITY    Current liabilities    Accounts payable                                   $194,407     $178,629    Accrued expenses                                    192,321      190,702    Current portion - long-term debt                      9,239       10,887        Total current liabilities                       395,967      380,218    Deferred taxes                                       66,206       57,340    Other non-current liabilities                       160,666      144,722    Long-term debt                                      305,658      181,124    Stockholders' equity    Common Stock $.10 par value:        Authorized - 300,000,000 shares        Issued - 151,374,836 shares and         135,762,531 shares                              15,137       13,576    Additional paid-in capital                          406,304      285,159    Treasury stock at cost - 34,224,114     shares and 12,265,993 shares                      (324,425)     (84,136)    Accumulated other comprehensive income                   18            1    Retained earnings                                   768,949      732,938        Total stockholders' equity                      865,983      947,538    Total liabilities and stockholders' equity       $1,794,480   $1,710,942    Certain prior-year amounts have been reclassified to conform to the    current-year presentation.    Amounts are preliminary and subject to reclassifications and adjustments.                   CHARMING SHOPPES, INC. AND SUBSIDIARIES               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                                 (Unaudited)                                                      Thirty-nine Weeks Ended                                                       November 3, October 28,    (In thousands)                                        2007         2006    Operating activities    Net income                                          $41,009     $ 83,981    Adjustments to reconcile net income to net     cash provided by operating activities      Depreciation and amortization                      77,986       74,034      Deferred income taxes                               8,856       (9,713)      Excess tax benefits related to stock-       based compensation                                  (847)      (2,635)      Net loss from disposition of capital assets         1,926          849      Net gain from securitization activities            (8,397)        (761)      Changes in operating assets and liabilities        Accounts receivable, net                         29,807       36,583        Merchandise inventories                         (68,763)    (105,040)        Accounts payable                                 15,778       74,330        Deferred advertising                            (10,423)      (5,617)        Prepayments and other                              (579)     (17,932)        Income taxes payable                                  0       10,998        Accrued expenses and other                       17,764        1,757    Purchase of Lane Bryant credit card     receivables portfolio                             (230,975)           0    Securitization of Lane Bryant credit card     receivables portfolio                              230,975            0    Net cash provided by operating activities           104,117      140,834    Investing activities    Investment in capital assets                       (108,775)     (92,524)    Gross purchases of securities                       (73,033)     (33,472)    Proceeds from sales of securities                     3,777       52,540    Increase in other assets                            (17,225)      (7,417)    Net cash used by investing activities              (195,256)     (80,873)    Financing activities    Proceeds from short-term borrowings                   9,527      142,212    Repayments of short-term borrowings                  (9,527)    (192,212)    Proceeds from issuance of senior     convertible notes                                  275,000            0    Proceeds from long-term borrowings                      986            0    Repayments of long-term borrowings                   (9,044)     (11,491)    Payments of deferred financing costs                 (7,611)           0    Excess tax benefits related to stock-     based compensation                                     847        2,635    Purchase of hedge on senior convertible notes       (90,475)           0    Sale of Common Stock warrants                        53,955            0    Purchases of treasury stock                        (240,289)           0    Net proceeds from shares issued under     employee stock plans                                   321        7,001    Net cash provided/(used) by financing     activities                                         (16,310)     (51,855)    Increase in cash and cash equivalents              (107,449)       8,106    Cash and cash equivalents, beginning of period      143,838      130,132    Cash and cash equivalents, end of period            $36,389     $138,238    Non-cash financing and investing activities    Common Stock issued on redemption of     convertible notes                                 $149,564           $0    Assets acquired through capital leases               $5,509           $0    Amounts are preliminary and subject to reclassifications and adjustments.