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Caché Q1 Loss Widens on Taxes, Charges

In Industry News, Reports, What's New by Jeff PrineLeave a Comment

CacheNew York—Caché swung into a wider first quarter loss as it faced a larger income tax provision and employee separation costs.

For the quarter ended March 30, the women’s specialty retailer posted a net loss of $18.5 million, or $1.38 a share, compared to a loss of $1.2 million, or 9 cents a share, a year ago.

Included in the loss was a $10.2 million income tax provision whereas the same quarter a year ago posted an income tax benefit of $797,000. Employee separations costs amounts to 11 cents a share, the company said.

Excluding those charges, the company lost 51 cents a share.

Net sales decreased 4.5% to $53.5 million. Comparable store sales decreased 1.5% compared to an increase of 9.4% in first quarter 2012.

Jay Margolis, chairman/ceo, said today that Caché’s quarterly performance was hindered by reduced online promotions and increased markdowns on merchandise from previous seasons.

“We began to see elements of our initiatives, including a positive reaction to new date tops, event dresses and day dresses in the first quarter and expect that the continuing development and evolution of our strategies will have a greater impact on our performance during the second half of the year,” Margolis added.

Gross profit for the first quarter was $16.4 million, or 30.6% of net sales, compared to $22.2 million, or 39.6% of net sales, in the first quarter of fiscal 2012. The decrease in gross profit margin was primarily driven by an increase in markdowns on prior season assortments, as compared to the prior year.

Caché Inc. currently runs 249 stores in 41 states, the Virgin Islands and Puerto Rico.

 

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