Caché Q3 Loss Widens, But Sales Increase

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

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.


It's only fair to share...
Share on FacebookTweet about this on TwitterPin on PinterestShare on LinkedInPrint this pageEmail this to someone