Home / Knowledge / News / Apparel/Garments / Cache Q1'FY14 comparable store sales dip 8.9%
Cache Q1'FY14 comparable store sales dip 8.9%
13
May '14
Cache, Inc., a specialty chain of women’s apparel stores, reported results for the thirteen week period (“first quarter”) ended March 29, 2014.
 
For the 13-week period ended March 29, 2014:
Net sales were $47.4 million compared to $53.5 million in the first quarter of fiscal 2013. Comparable store sales decreased 8.9%, reflecting the difficult selling season with the decrease in mall traffic, adverse weather conditions and the shift of Easter to the second quarter.
 
Operating loss totaled $10.7 million and included employee separation charges incurred of $134,000. This compares to an operating loss of $7.7 million in the first quarter of fiscal 2013 and included employee separation charges incurred of $1.5 million.
 
Net loss totaled $10.8 million or $0.51 per share and included a $134,000 charge, or $0.01 per share, in employee separation charges. This compares to a net loss of $17.8 million, or $1.33 per share, in the first quarter of fiscal 2013 which included a $10.1 million charge, or $0.75 per share, related to an increase in the tax valuation allowance against net deferred tax assets as well as a $1.5 million charge, or $0.11 per share, in employee separation charges.
 
Jay Margolis, Chairman and Chief Executive Officer, commented, “We had a disappointing start to the year with strength across our dress assortments more than offset by too narrow of an assortment in key casual bottoms, and the decision not to move forward with certain casual and accessories offerings that were inconsistent with our brand positioning. This, along with lower mall traffic throughout the quarter, store closings as a result of winter snowstorms and the later Easter holiday impacted our sales and profitability. 
 
“While not yet evident in our bottom line, the quarter included progress toward our long term goals and we are applying key learnings from the first quarter to our go forward strategies. To this end, we were pleased with the response to our dress assortments in long, short, day and evening categories. At quarter end, dresses represented 55% of our total sales compared to 44% a year ago. On the process side, we reduced lead times to allow us to be more nimble and react faster to fashion trends.”
 
First Quarter Operating Results
Gross profit for the first quarter of fiscal 2014 was $13.0 million, or 27.3% of net sales, compared to $17.0 million, or 31.7% of net sales, in the first quarter of fiscal 2013. The decrease in gross profit margin was primarily due to the leverage impact of occupancy costs on reduced sales, as compared to the prior year.
 
In total, operating expenses were $23.6 million, or 49.8% of net sales, as compared to $24.7 million, or 46.1% of net sales, in the first quarter of fiscal 2013. The decrease in operating expenses was primarily due to a decrease in store operating expenses, partially offset by increases in general and administrative expense due to an increase in payroll and payroll related costs and a net increase in other miscellaneous items.
 
At March 29, 2014, cash totaled $806,000, as compared to $4.7 million in cash and certificates of deposit at March 30, 2013. Total inventory at cost was approximately the same as last year.
 

Cache


Must ReadView All

Textiles | On 31st May 2016

US textile & apparel imports dip 2.55% in Jan-March

The import of textiles and apparel by United States dropped 2.55 per...

Textiles | On 31st May 2016

FICCI forecasts 7.7% GDP growth for Indian economy in FY17

The results of latest round of the Federation on Indian Chambers of...

Textiles | On 31st May 2016

Shaoxing to be China’s largest textile recycling base

Shaoxing city in eastern China’s Zhejiang province is all set to...

Interviews View All

Binoy Ravjani
Hero's Fashion

What are the latest trends in hand block printing?

Neel Sawhney
One Friday

What is the overall size and growth of the market for kidswear in India?...

Claudia Kersten
Global Organic Textile Standard

What benefits can MSMEs have from GOTS certification? What is the...

Steve Cole
Xerium Technologies

<b><i>Steve Cole of Xerium Technologies discusses the industry. Xerium is...

Johan Berlin
InvestKonsult Sweden AB

<i><b>Investkonsult Sweden AB has been buying and selling second-hand...

Mohammad Hassan
Biax Fiberfilm

<b><i>About one in every 20 patients picks up an infection while...

Ritu Kumar
Label Ritu Kumar

"There are a lot of people wearing western clothes in India as well. But...

Yash P. Kotak
Bombay Hemp Company

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

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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
May 2016

F2F Magazine

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search