Apparel retailer Cache posts 5.9% sales dip in Q3 2012

In total, operating expenses for the third quarter of fiscal 2012 were $22.8 million, unchanged from the prior year quarter. As a percentage of net sales operating expenses increased to 49.7% compared to 46.9% of net sales, in the third quarter of fiscal 2011. For the first nine months of fiscal 2012, total operating expenses were $71.7 million, or 43.9% of net sales, compared to $69.3 million, or 43.1% of net sales, in the first nine months of fiscal 2011. The increase in total operating expenses for the first nine months of fiscal 2012 primarily reflected increased marketing expenses and e-commerce related costs, which were partially offset by lower depreciation expense, as compared to the same period in fiscal 2011.

Store Information

During the third quarter, the Company closed two locations, ending the period with 262 stores in operation. For fiscal 2012, the Company expects to open no new additional stores and since September 29, 2012 the Company has closed one additional location. Accordingly, the Company expects to end fiscal 2012 with approximately 261 locations and 525,000 square feet in operation.

2012 Outlook

For the fourth quarter of fiscal 2012, the Company currently expects comparable store sales to be flat or to increase in the low-to-mid single-digit range. This follows a 12.4% increase in comparable store sales in the fourth quarter of fiscal 2011. The Company currently expects fourth quarter fiscal 2012 net earnings per diluted share in the range of $0.01 to $0.03, exclusive of any potential asset impairment costs and potential tax valuation allowance. In the fourth quarter of fiscal 2011, the Company reported net income of $0.15 per diluted share, or $0.12 per diluted share excluding tax valuation allowance reversal, store impairment charges and gain on note payable settlement.

Cache is a nationwide, mall-based specialty retailer of sophisticated sportswear and social occasion dresses targeting style-conscious women who have a youthful attitude and are self-confident.

Cache Inc