Charlotte Russe’s forecast lifts stock

Shares of Charlotte Russe Holding Inc., which caters to young women and teenagers, rose the most in more than a year after forecasting first-quarter earnings in line with analysts’ estimates.

The shares rose $1.43, or 10%, to $15.72. It was the biggest gain since March 2006.

Profit from continuing operations for the fiscal 2008 quarter is expected to be 47 cents to 50 cents a share, the San Diego-based retailer said. It was expected to earn 48 cents, the average estimate of analysts surveyed by Bloomberg.

Charlotte Russe, which operates namesake, value-priced clothing and accessories stores in 44 states and Puerto Rico, said that although it opened 50 stores in fiscal 2007 and had plans to open 60 more in the current fiscal year, it remained cautious “given the uncertain economic environment.”

Investors should expect “a flat to low single-digit decline” in first-quarter same-store sales, the company said.

“We entered the quarter well-positioned from an inventory standpoint, and we continue to be pleased with the performance of our new and remodeled stores,” Chief Executive Mark Hoffman said.

Fourth-quarter profit from continuing operations fell 34% to $8.43 million, or 33 cents a share, from $12.7 million, or 51 cents, in the year-earlier quarter, the company said. The year-earlier quarter comparison excludes income and gains from the disposition of the company’s Rampage stores that made net income $24.3 million.

Sales in the quarter ended Sept. 29 rose 0.9% to $190.3 million. Same-store sales fell 5.3%.