For the quarter ended Oct. 1, Caché reported a net loss of $1.8 million, 14 cents a share, as compared to a net loss of $5 million or 39 cents a share in last year’s quarter, which included an 8 cents a share in legal fees.
Net sales increased 6.9% to $48.7 million from $45.5 million in the third quarter 2010. Comparable store sales increased 5.7% following flat comparable store sales in same quarter a year ago.
While Caché’s sales were in line with analysts’ average estimate for $48.2 million, its loss exceeded the estimate for a 7 cent a share.
“During the quarter, our customers responded favorably to our fashion across categories, as we presented her with current trends and the embellishment she desires in our compelling Caché style,” said Thomas Reinckens, chairman/ceo. “This drove a 5.7% increase in comparable store sales and a 570 basis point expansion in gross margin. Higher markdowns coupled with higher medical insurance costs held back our operating results versus our original expectations. Importantly, we saw an improvement in top line results in September, as sales increased double digits during the five-week period, and overall we were pleased with our results, which represented a significant improvement over the prior year.”
Noting that the retailer’s October comparable store sales were up 17.5% over last year, Reinckens said the company remains optimistic for fourth quarter and reaffirmed its forecast for earnings between 24 to 30 cents a share. Analysts’ average forecast expects 24 cents.
“In addition, we are very pleased with the performance of our recently upgraded web platform as evidenced by our e-commerce sales, which are up over 100% in October,” Reinckens added.