Caché Q3 Loss Widens, But Sales Increase

Sparkles and Silver: jewelry and apparel for holiday at Caché

Sparkles and Silver: jewelry and apparel for holiday at Caché

New York—Caché Inc. reported today that it swung into a wider third quarter loss as increased operating expenses and an income tax benefit last year cut into its profit.

For the quarter ended Sept. 28, Caché posted a net loss of $8 million, 38 cents a share, compared with a net loss of $6.4 million, or 49 cents a share, in the prior year period.

Excluding a tax allowance and costs related to employee reductions, Caché’s adjusted loss was 35 cents a share. Analysts’ average estimate expected a loss of 23 cents a share.

‘Positive Performance’

Net sales increased 3.1% to $47.22 million. Comparable store sales were up 6% compared to a decrease of 2.9% in the year-ago quarter.

Gross margin improved 150 basis points to 33.5% due to lower design, production and sourcing costs as well as lower markdowns and higher sales than a year ago.

Total operating expenses rose 4% to $23.77 million.

“During the quarter, we saw a favorable consumer response to our initial efforts to differentiate Caché from peers with unique event dresses, tops, sportswear and accessories,” said Jay Margolis, chairman/ceo. “This positive performance was partially offset by our actions to clear product that was not consistent with our go-forward strategy. We also continued to significantly reduce promotional activity in our e-commerce channel to enhance our profitability and importantly create brand integrity as we present a clear pricing message to our customers.”

The retailer ended the quarter with 250 stores compared to 262 stores last year.

 

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Jeff Prine, Editor at Large, Accessories Magazine
Jeff returns as a regular contributor to Accessories magazine. Initially Jeff worked as senior editor at Accessories more than 20 years ago and his love of the industry has followed him until present. Since his tenure here, Jeff has continued to report jewelry, watch and other luxury goods trends as executive editor at Modern Jeweler magazine, fashion director at Lustre, and as contributor on products and trends for consumer and trade publications and websites. In addition to his editorial experience, Jeff also served as an adjunct instructor for accessories merchandising at Fashion Institute of Technology. jeffp@busjour.com

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