Cache Inc., (NASDAQ: CACH), a specialty chain of women’s apparel stores today updated its outlook for the fourth quarter and fiscal 2011 year and introduced first quarter fiscal 2012 guidance. Cache expects to report full results for the fourth quarter and fiscal 2011 year the week of March 19, 2012.
Thomas Reinckens, Chairman and Chief Executive Officer, commented: “For the fourth quarter, we achieved 12% comparable sales growth and expect a significant improvement in earnings as compared to the fourth quarter last year, representing a solid finish to a profitable year of growth for Cache. Our performance however, was held back versus our original expectations due to the heightened promotional environment for cold weather assortments, such as sweaters and outwear, in the month of December. This led to increased markdowns and mitigated the strength of our dress and sportswear categories.”
“We are beginning 2012 in a strong position,” Mr.Reinckens continued. “For the first 10 days of our fiscal first quarter sales are exceeding our plan. We expect the enhancements we have made to our design, merchandising and sourcing processes and infrastructure to allow us to continue our positive sales momentum and increase merchandise margin. We are equally excited by the opportunities to further expand our Cache brand. Fiscal 2012 will mark our initial foray into international markets and we expect strong growth in our e-commerce channel, as we capitalize on our elevated platform.”
Updated Fourth Quarter and Fiscal 2011 Guidance
Based on preliminary results, the Company expects fourth quarter fiscal 2011 comparable store sales to increase 12%, which is consistent with the Company’s original outlook for a comparable store sales increase in the low double-digit range. Diluted earnings per share for the fourth quarter of fiscal 2011 are currently expected in the range of $0.16 to $0.18, exclusive of any potential asset impairment costs. This compares to adjusted fourth quarter 2010 loss per share of $0.16. The actual reported fourth quarter 2010 net loss per share totaled $1.11 and included the following costs: (i) $5.7 million or $0.44 per diluted share, related to the valuation allowance against net deferred tax assets as required under GAAP; and (ii) $6.5 million or $0.51 per diluted share for non-cash impairment charges and other legal expenses. Fourth quarter fiscal 2011 diluted earnings per share continues to be predicated on a 20% tax rate, as initially guided.