Young women's retailer Charlotte Russe Holding admitted it is looking at "strategic alternatives" for the floundering Rampage chain as it reported an increased second-quarter loss of US$11.6m.

Net sales for the second quarter increased 34.7% to $171.1m from $127.0m for the second quarter last year. Same-store sales increased 16.6% during the quarter, compared to a decrease of 3.1% for the second quarter of fiscal 2005.

Russe's CEO Mark Hoffman said the core Charlotte Russe brand "performed very well" in the quarter, and added: "…we are pleased with how well our merchandise assortments have been accepted by our targeted customers".

The Rampage chain, however, "continued to struggle with its brand repositioning". Its contribution to overall revenues during the second quarter declined to about 10%, as it notched up total losses of $9m in the first half of the year.

The company suffered a $762,000 loss in last year's second quarter.

Russe now plans to open 40 Charlotte Russe stores this year compared to the 40 as previously planned. In addition, it aims to open at least 50 new stores in fiscal 2007.