Home / Knowledge / News / Apparel/Garments / Le Château FY '12 Q3 sales dip 5.4%
Le Château FY '12 Q3 sales dip 5.4%
03
Jan '12
Le Château Inc. reported that sales for the third quarter ended October 29, 2011 decreased 5.4% to $70.4 million from $74.5 million for the third quarter ended October 30, 2010. Comparable store sales decreased by 8.4% versus the same period a year ago.

Sales were negatively impacted by reduced traffic as consumers continued to remain cautious on discretionary spending in the context of global economic uncertainty. Unusually mild weather in most Canadian regions also affected demand for winter related categories, necessitating increased promotional activity. As a result, the Company's gross margin percentage in the third quarter of 2011 decreased to 68.8% from 71.6% last year.

In addition to external factors impacting sales and gross margin, the Company incurred some non-recurring expenses related to the temporary ramp-up in marketing expenses to accelerate brand repositioning efforts and start-up costs related to the e-commerce initiative which totaled $2.4 million for the third quarter.

Net loss for the third quarter ended October 29, 2011 amounted to $4.1 million compared to net earnings of $2.5 million for the third quarter ended October 30, 2010. Earnings (loss) per share (diluted) for the third quarter amounted to $(0.16) per share versus $0.10 per share the previous year.

Loss before interest, income taxes, depreciation and amortization for the third quarter amounted to $104,000, compared to earnings before interest, income taxes, depreciation and amortization (“EBITDA”) of $8.4 million or 11.3% of sales last year.

Nine-month Results
Sales during the nine months ended October 29, 2011 decreased 5.0% to $220.2 million from $231.9 million last year. Comparable store sales decreased 8.2% versus the same period a year ago.

Net loss for the nine-month period amounted to $3.5 million or $(0.14) per share (diluted) compared to net earnings of $15.3 million or $0.62 per share the previous year. EBITDA for the first nine months amounted to $11.4 million or 5.2% of sales, compared to $35.9 million or 15.5% of sales last year.

Year-to-date results were impacted by lower sales combined with some pressure on gross margins reflecting increased promotional activity and higher selling expenses. The latter includes some non-recurring expenses such as the above-mentioned temporary ramp-up in marketing expenses and the e-commerce initiative which totaled over $5.0 million for the period.

During the first nine months of the year, the Company opened five stores and expanded twelve existing locations, resulting in the addition of 39,000 square feet or 3.2% to the Le Château network, bringing the total floor space at end of period to 1,260,000 square feet.

In July 2011, the Toronto Stock Exchange approved the Company's previously announced normal course issuer bid to purchase up to 1,011,443 Class A subordinate voting shares. Since July 18, 2011, no Class A subordinate votingshares have been purchased by the Company.


Must ReadView All

Courtesy: Stone Island

Apparel/Garments | On 25th Jun 2018

Stone Island has mastered ingredient branding: Braind

Italian high-end men's apparel brand Stone Island tops the list of...

Courtesy: Tecnorama

Textiles | On 25th Jun 2018

'Tecnorama automatic dyeing system offers efficiency'

Italy based Tecnorama’s fully-automatic machinery for dispensing...

Courtesy: Pantone

Textiles | On 25th Jun 2018

Pantone unveils polyester standards

Pantone, provider of professional colour standards for the design...

Interviews View All

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search