Cache, Inc. (NASDAQ: CACH), a specialty chain of 279 women’s apparel stores, reported results for the thirteen (“third quarter”) and thirty-nine week periods (“first nine months”) ended October 1, 2011.
For the 13-week period ended October 1, 2011:
- Net sales increased 6.9% to $48.7 million from $45.5 million in the third quarter of fiscal 2010. Comparable store sales increased 5.7%, following flat comparable store sales in the third quarter of fiscal 2010;
- Gross profit increased 24.3% to $19.8 million, or 40.6% of net sales, compared to $15.9 million, or 34.9% of net sales, in the third quarter of fiscal 2010;
- Operating loss totaled $3.0 million, an improvement from an operating loss of $8.1 million in the third quarter of fiscal 2010; and
- Net loss totaled $1.8 million or ($0.14) per share, as compared to a net loss of $5.0 million or ($0.39) per share last year, which included $0.08 per share in legal fees.
Thomas Reinckens, Chairman and Chief Executive Officer, commented: “We continued our positive momentum in the third quarter, further demonstrating the success of our strengthened processes in design, sourcing and merchandising. During the quarter, our customers responded favorably to our fashion across categories, as we presented her with current trends and the embellishment she desires in our compelling Cache style. This drove a 5.7% increase in comparable store sales and a 570 basis point expansion in gross margin. Higher markdowns coupled with higher medical insurance costs held back our operating results versus our original expectations. Importantly, we saw an improvement in top line results in September, as sales increased double digits during the five-week period, and overall we were pleased with our results, which represented a significant improvement over the prior year.”