Dress shrank to half the size after first wash

I bought a dress for my daughter from Factorie and after the first wash the dress is half the size. I went into the eastgate store and Christopher told me that they could not exchange the dress as the care labels had been removed. He informed me that they would not be able to resell the dress without the care labels. I asked him how they could resell merchandise that had been returned because it was not good quality and he informed me that they would. I cannot believe that Factorie will not exchange merchandise that is clearly of poor quality.