Home / Knowledge / News / Apparel/Garments / Apparel retailer Cache posts 2.3% sales growth in Q2
Apparel retailer Cache posts 2.3% sales growth in Q2
15
Aug '12
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 June 30, 2012.

For the 13-week period ended June 30, 2012:

  • Net sales increased 2.3% to $61.6 million from $60.3 million in the second quarter of fiscal 2011. Comparable store sales increased 4.7%, which compares to an increase of 6.0% in the second quarter of fiscal 2011;
  • Gross profit decreased 4.1% to $26.4 million, or 42.8% of net sales, from $27.5 million, or 45.7% of net sales, in the second quarter of fiscal 2011;
  • Operating income totaled $1.7 million, as compared to $4.2 million in the second quarter of fiscal 2011; and
  • Net income totaled $1.0 million, or $0.08 per diluted share, as compared to net income of $2.8 million or $0.22 per diluted share in the second quarter of fiscal 2011.

Thomas Reinckens, Chairman and Chief Executive Officer, commented: “Our second quarter results included positive comparable store sales, ongoing strength in dresses, and a more than doubling of e-commerce sales. However, earnings were disappointing, driven by a weak response to our sportswear offerings. We have taken the appropriate actions necessary to clear seasonal inventory, which is expected to negatively impact margins in the third quarter.

“That said, we expect to continue our positive momentum in dresses and generate improvement in our sportswear sales, as we infuse a better balance of color and neutrals to our offerings. This coupled with our heightened focus on expense discipline that includes $1.8 million in expected annual savings will assist us in improving our performance.”

For the 26-week period ended June 30, 2012:

  • Net sales increased 4.7% to $117.6 million from $112.4 million in the first six months of fiscal 2011. Comparable store sales increased 6.9%, as compared to a increase of 6.8% in the first six months of fiscal 2011;
  • Gross profit decreased 1.7% to $48.6 million, or 41.3% of net sales from $49.4 million, or 44.0% of net sales, in the first six months of fiscal 2011;
  • Operating loss totaled $346,000, as compared to an operating income of $2.9 million in the first six months of fiscal 2011; and
  • Net loss was $177,000 or ($0.01) per diluted share, as compared to a net income of $2.0 million, or $0.16 per diluted share in the first six months of fiscal 2011.

Gross profit for the second quarter of fiscal 2012 was $26.4 million, or 42.8% of net sales, compared to $27.5 million, or 45.7% of net sales, in the second quarter of fiscal 2011.

For the first six months of fiscal 2012, gross profit was $48.6 million, or 41.3% of net sales, compared to $49.4 million, or 44.0% of net sales in the first six months of fiscal 2011.

The decrease in gross margin for the second quarter and first six months of fiscal 2012 was primarily driven by an increase in markdowns and internet fulfillment and delivery expenses, partially offset by an increase in initial mark-up and a decline in occupancy costs as a percentage of net sales, as compared to the prior year.


Must ReadView All

Building of Ethiopian textile unit by Chinese firm starts

Textiles | On 22nd Jan 2018

Building of Ethiopian textile unit by Chinese firm starts

Chinese firm Wuxi No. 1 Cotton Mill will build a textile plant in...

JD.com to invest $3.1 bn to revive industry in NE China

Apparel/Garments | On 22nd Jan 2018

JD.com to invest $3.1 bn to revive industry in NE China

To back the government’s campaign to revitalize the traditional...

SIMA makes pre-budget recommendations to Indian govt

Textiles | On 22nd Jan 2018

SIMA makes pre-budget recommendations to Indian govt

Exemption of 5 per cent goods and services tax (GST) on raw cotton,...

Interviews View All

Representatives
Textile & apparel industry

GST is a complicated and lengthy process

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Top executives
Textile industry, India

The event should be organised every year

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Larry L Kinn
Suominen Corporation

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

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

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

January 2018

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search