Cache Q4 Loss Narrows Despite Sales Decline

cacheNew 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.”

 

Like this? Share it!


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

The Ad Will Close In 15 Seconds - Skip This Ad