Cache, Inc., a specialty chain of women’s apparel stores, reported results for the thirteen (“third quarter”) and thirty-nine week periods (“first nine months”) ended September 28, 2013.
For the 13-week period ended September 28, 2013:
-Net sales increased 3.1% to $47.2 million from $45.8 million in the third quarter of fiscal 2013. Comparable store sales increased 6.0%, as compared to a decrease of 2.9% in the third quarter of fiscal 2012;
-Gross profit increased 7.9% to $15.8 million, or 33.5% of net sales, compared to $14.7 million, or 32.0% of net sales, in the third quarter of fiscal 2012, due to the improvement in sales and a decrease in markdowns;
-Operating loss totaled $8.0 million, as compared to an operating loss of $8.1 million in the third quarter of fiscal 2012;
-Net loss totaled $8.0 million or $0.38 per share, as compared to net loss of $6.4 million or $0.49 per share, in the prior year period; and
-Adjusted net loss totaled $7.4 million, or $0.35 per share, as compared to adjusted net loss of $4.9 million or $0.38 per share in the third quarter of fiscal 2012. (See reconciliation of adjusted net loss to net loss.)
-Jay Margolis, Chairman and Chief Executive Officer, commented: “Our third quarter results included solid progress on our key merchandising, store and e-commerce initiatives that we identified at the start of the year and are expected to position Cache for profitability and sustained long term growth. Specifically, we generated increased net sales, positive comparable store sales and an expansion in gross profit margin, as compared to a year ago.
“During the quarter, we saw a favorable consumer response to our initial efforts to differentiate Cache from peers with unique event dresses, tops, sportswear and accessories. 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.”
“I am confident in our outlook as we enter the all important holiday season, Mr. Margolis continued. “We have exciting plans in place to capitalize on the gift giving season and our merchandise is positioned to take advantage of our customers’ needs during the festivities of the season. Our overarching goal remains to maximize our white space opportunity, which we have defined as “the events in a woman’s life,” and we believe we have the right talent, merchandise, store base and marketing to achieve this objective.”
