New York—Caché said Tuesday that it swung into a fourth quarter loss as net sales and comparable store sales edged downward.
For the quarter ended Dec. 29, Caché posted a net loss of $5.5 million, or 41 cents a share, compared to net income of $1.9 million, or 14 cents a share, in the prior year period.
The latest-quarter result included a $2.5 million, or 18 cents a share, tax valuation allowance charge, and a $682,000, or 5 cents a share, non-cash asset impairment charge.
Adjusted net loss was $2.4 million, or 18 cents share, compared to adjusted net income of $1.5 million, or 11 cents share, in the fourth quarter of fiscal 2011.
Analysts’ average estimate expected a loss of 11 cents a share.
Net sales decreased 3.3% to $60.8 million. Comparable store sales decreased 0.7%, compared to an increase of 12.4% in the fourth quarter last year.
Gross profit in the quarter was $20.7 million, or 34% of net sales, compared to $27.2 million, or 43.3% of net sales last year, primarily driven by increased markdowns and high costs related to e-commerce.
While Jay Margolis, chairman/ceo, called 2012 a “challenging year for Caché,” he said several areas of progress were made that will give fiscal 2013 a “solid foundation.” For instance, e-commerce sales have doubled and underperforming stores were closed.
In his first year at the helm of this specialty retailer, Margolis said his focus had been on “implementing the processes and strategies to allow our company to deliver consistent and cohesive apparel and accessories assortments, to enhance and continue to grow our e-commerce business and capitalize more fully on our event dressing opportunity.”