Women's apparel store Cache sales down 3.3% in Q4 FY'12

Fourth Quarter and Full Year Operating Results

Gross profit for the fourth quarter of fiscal 2012 was $20.7 million, or 34.0% of net sales, compared to $27.2 million, or 43.3% of net sales, in the fourth quarter of fiscal 2011. For fiscal 2012, gross profit was $83.9 million, or 37.4% of net sales, compared to $96.4 million, or 43.1% of net sales, in fiscal 2011. The gross profit decrease in the fourth quarter and fiscal year was primarily driven by increases in markdowns and an increase in e-commerce related costs relating to significantly higher e-commerce sales.

In total, operating expenses for the fourth quarter of fiscal 2012 were $25.7 million, or 42.2% of net sales, as compared to $24.8 million, or 39.5% of net sales, in the fourth quarter of fiscal 2011. For fiscal 2012, total operating expenses were $97.3 million, or 43.4% of net sales, compared to $94.2 million, or 42.1% of net sales, in fiscal 2011.

The increase in operating expenses for the fourth quarter and fiscal year 2012 was primarily driven by increases in impairment charges, professional fees, marketing, as well as e-commerce costs and were partially offset by savings in payroll and related expenses.

At December 29, 2012, cash and marketable securities totaled $18.4 million, as compared to $29.5 million at December 31, 2011. Total inventory at cost decreased 3.8% to $21.2 million at year-end from the prior-year period.

Cache Inc