Cache, Inc., (NASDAQ: CACH), the specialty chain of women’s apparel stores, reported results for the thirteen (“fourth quarter”) and fifty-two week (“fiscal 2012”) periods ended December 29, 2012.
For the 13-week period ended December 29, 2012:
- Net sales decreased 3.3% to $60.8 million from $62.9 million in the fourth quarter of fiscal 2011. Comparable store sales decreased 0.7%, compared to an increase of 12.4% in the fourth quarter of fiscal 2011.
- Operating loss totaled $5.0 million, inclusive of $1.1 million in non-cash asset impairment charges. This compares to operating income of $2.4 million in the fourth quarter of 2011, inclusive of $719,000 in non-cash asset impairment charges partially offset by a $345,000 benefit from a gain on note payable settlement.
- Net loss totaled $5.5 million, or $0.41 per diluted share, which included the following costs: (i) a $2.5 million or, $0.18 per diluted share, tax valuation allowance charge; and (ii) a $682,000, or $0.05 per diluted share, non-cash asset impairment charge. This compares to net income of $1.9 million, or $0.14 per diluted share, in the prior year period, which included the following benefits and costs: (i) a $562,000, or $0.04 per diluted share, benefit from the reversal of the tax valuation allowance against net deferred tax assets; (ii) a $396,000, or $0.03 per diluted share, non-cash store impairment charge; and (iii) a $190,000, or $0.02 per diluted share, benefit from a gain on note payable settlement.
- Adjusted net loss, which excludes the costs and benefits referenced above, was $2.4 million, or $0.18 per diluted share, as compared to adjusted net income of $1.5 million, or $0.11 per diluted share, in the fourth quarter of fiscal 2011. (See the table on page 3 for a reconciliation of net income (loss) to adjusted net income (loss).)
Jay Margolis, Chairman and Chief Executive Officer, commented: “Fiscal 2012 was a challenging year for Cache, yet we also saw progress in key areas that we believe allow us to begin fiscal 2013 with a solid foundation. To this end, we doubled our e-commerce sales in this high growth channel, optimized our stores through the closing of underperforming locations to end the year with a strong ongoing store base and continued to be a top destination for event dresses. My priorities in my first year as Chairman and CEO are focused on implementing the processes and strategies to allow our Company to deliver consistent and cohesive apparel and accessories assortments, to enhance and continue to grow our e-commerce business and capitalize more fully on our event dressing opportunity. I am fortunate to have joined an organization that possesses incredible talent and a passion for moving our business forward. I am even more excited today about the opportunities that exist to position Cache for long term profitable growth since joining the Company in February and remain confident in our ability to achieve this goal.”