Cache Inc: triples Q2 profit; a strong performance
Cache Inc, a specialty chain of women's apparel stores, reported results for the thirteen (“second quarter”) and twenty-six week periods (“first six months”) ended July 2, 2011.
For the 13-week period ended July 2, 2011:
• Net sales increased 6.5% to $60.3 million from $56.6 million in the second quarter of fiscal 2010. Comparable store sales increased 6.0%, which compares to an increase of 5.1% in the second quarter of fiscal 2010;
• Gross profit increased 10.4% to $27.5 million, or 45.7% of net sales from $24.9 million, or 44.1% of net sales in the second quarter of fiscal 2010;
• Operating income totaled $4.2 million, as compared to $1.4 million in the second quarter of fiscal 2010; and
• Net income totaled $2.8 million, or $0.22 per diluted share, as compared to net income of $897,000, or $0.07 per diluted share in the second quarter of fiscal 2010.
Thomas Reinckens, Chairman and Chief Executive Officer, commented: “We are pleased to report better-than-expected second quarter results continuing our favorable momentum from the first quarter. We believe our strong performance validates the success of the design, merchandising and sourcing process changes implemented last year and the focused execution of our team. This led to a 6% increase in comparable store sales following a 5% comparable store sales increase in last year's second quarter and a threefold increase in diluted earnings per share. Our comparable store sales increase was fueled by regular price selling, as we presented distinctive collections that resonated with our core customers and attracted new consumers to our brand. We ended the quarter with a strong balance sheet with $27 million in cash and marketable securities, with inventory below the prior year.”
“As we look ahead, we are optimistic about our ability to continue our positive performance,” Mr. Reinckens continued. “We see additional opportunity to further increase sales and margins, and utilize our improved tools to create stronger selling assortments. We also expect to benefit from increased conversion rates by optimizing customer service levels and our in-stock position. In total, we continue to expect fiscal 2011 to represent a strong year for Cache and deliver increased value for our stakeholders.”
For the 26-week period ended July 2, 2011:
• Net sales increased 6.9% to $112.4 million from $105.1 million in the first six months of fiscal 2010. Comparable store sales increased 6.8%, as compared to a decrease of 0.8% in the first six months of fiscal 2010;
• Gross profit increased 18.7% to $49.4 million, or 44.0% of net sales from $41.6 million, or 39.6% of net sales in the first six months of fiscal 2010;
• Operating income totaled $2.9 million, as compared to an operating loss of $5.2 million in the first six months of fiscal 2010; and
• Net income was $2.0 million or $0.16 per diluted share, as compared to a net loss of $3.2million or ($0.25) per diluted share in the first six months of fiscal 2010.