'We expect to generate modest profit for second quarter' - Cache CEO

10 Apr '09

2 min read

Cache Inc, a specialty chain of women's apparel stores with 294 stores open, reported first quarter fiscal 2009 sales results.

For the thirteen-week period ended March 28, 2009, comparable store sales (sales for stores open at least one year or more) decreased 20.7%, as compared to an increase of 3.3% in the prior-year period ended March 29, 2008. Total net sales for the thirteen-week period decreased $14.5 million or 21.5% to $53.2 million, as compared to last year.

Thomas Reinckens, Chairman and CEO of Cache Inc commented: “As anticipated, our first quarter sales performance reflected the tough consumer spending environment, driven by the challenging economy and the impact of pre-Easter sales occurring in April this year versus March last year. While our sales results met the low end of our guidance range, our inventory and expense management efforts were successful, and we remain on track to achieve first quarter expectations of a net loss per share of $0.12 to $0.13, as compared to our previous guidance of $0.12 to $0.16.

During the quarter, sales of day dresses and accessories outpaced our total comparable store sales for the quarter. We also continue to be encouraged by positive customer response to the expansion of our casual offerings. Looking ahead, we expect our second quarter sales to benefit from the shift in the Easter holiday.

For the second quarter, we expect to generate a modest profit, which assumes the current macro environment remains unchanged and our sales continue to trend similarly to the levels we experienced in the first quarter. We remain focused on delivering positive cash flow in an expected difficult year, while driving increased customer loyalty through our merchandising and marketing initiatives.”

During the quarter, the Company opened two stores and closed four locations, ending the period with 294 locations.

Updated First Quarter Fiscal 2009 Guidance
The Company currently expects net loss per share for the first quarter of fiscal 2009 in the range of $0.12 to $0.13, compared to its previous net loss per share range of $0.12 to $0.16. First quarter fiscal 2008 loss per share was $0.15, which includes costs of $1.5 million, or $0.11 per share related to stores closures and $0.03 per share in costs related to a management change.

Cache Inc

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