Cache Post Loss, But Expects To Turn Profitable

NEW YORK (AP) — Women's apparel retailer Cache Inc. said Friday that it lost more money in its fiscal third quarter than a year earlier, weighed down by lower-than-expected sales and markdowns.

The retailer said, however, that it expects to be profitable in its fourth quarter, as the company adjusts its merchandising strategy heading into the holiday shopping period.

For the period ended Sept. 26, Cache lost $6.8 million, or 53 cents per share, compared with a loss of $1.6 million, or 12 cents per share, a year ago.

Excluding separation agreement costs of 10 cents per share, Cache posted a 43 cents per share loss.

Analysts surveyed by Thomson Reuters, whose estimates normally exclude one-time items, predicted a smaller loss of 20 cents per share.

"We were disappointed with our third-quarter results, which reflected lower-than-expected sales and our decision to accelerate markdowns in anticipation of our new fall and holiday assortments," Chairman and CEO Thomas Reinckens said in a statement.