New York—Cache Inc. said today its fourth quarter loss narrowed even as net and comparable store sales were down. CEO Jay Margolis said the specialty retailer has made significant progress in its turnaround.
For the quarter ended Dec. 28, Cache posted a net loss of $4.8 million, or 23 cents a share, from $5.5 million, or 43 cents a, a year ago. On an adjusted basis, loss was reported at $3.6 million, or 17 cents a share—worst than the 8 cents a share loss that analysts’ expected.
2014: ‘Showcasing Our Improved Fashion’
Net sales declined to $55.8 million from $60.8 million, missing analysts’ estimate for $58.28 million in sales. Comparable store sales were down 5.9%.
Gross profit was $20.3 million, or 36.4% of net sales and increased 240 basis points from $20.7 million, or 34% of net sales, a year earlier.
Operating expenses were $97.5 million, or 45% of net sales, compared to $97.3 million, or 43.4% of net sales, in fiscal 2012. The decrease in operating expenses for the fourth quarter was primarily driven by a decrease in advertising expense of $692,000.
“Fiscal 2013 was a pivotal year for Cache, during which we set a course to position the company to take advantage of a significant white space opportunity in apparel retail,” said Margolis. “During the year, we added key talent across all facets of our business from design to merchandising to marketing and e-commerce. At year end, we successfully transitioned our merchandise assortment to capitalize on our opportunity in event dressing; we re-positioned our e-commerce business to enhance and build our brand; and we refreshed select stores.”
For this fiscal year, Margolis said Cache will be “focused on delivering powerful assortments; continuing to refresh our stores; building brand awareness by showcasing our improved fashion in our stores; as well as through high impact marketing and online activities.”