Cache, Inc., (NASDAQ: CACH), a specialty chain of women’s apparel stores today announced estimated third quarter fiscal 2012 sales results and updated third quarter earnings guidance for the 13-week period ended September 29, 2012. The Company expects to report full results for the third quarter the week of November 12, 2012.
Net sales for the third quarter of fiscal 2012 are expected to be approximately $45.8 million, a decline of approximately $2.9 million from net sales of $48.7 million in the third quarter of fiscal 2011. Comparable store sales declined approximately 3% following a comparable store sales increase of 5.7% in the third quarter of fiscal 2011. Net loss per share for the third quarter of fiscal 2012 is currently expected in the range of $0.39 to $0.41. This compares to a net loss per diluted share of $0.14 in the third quarter of fiscal 2011. The Company’s balance sheet remains strong; the Company expects to have ended the third quarter with cash and marketable securities of approximately $17 million with no funded debt. Inventory at quarter end is expected to be flat with last year a marked improvement from the 21% increase reported at the end of the second quarter of fiscal 2012.
The Company also announced that it has retained the firm of Berglass+Associates to assist in the search for a President, Chief Merchandising Officer. In addition, during the quarter, the Company implemented a cost reduction program, which is expected to generate $3 million in annualized savings in fiscal 2013.
Thomas Reinckens, Chairman and Chief Executive Officer, commented: “While we expected our third quarter performance to be negatively impacted by increased promotional activity to clear our summer sportswear assortment, sales of our early fall offerings were equally challenging, lacking the fashion that our customers expect from Cache. This led to the revision to our third quarter guidance.”