For fiscal 2006, the company now estimates net sales in the range of $279 million to $285 million as compared to its previous guidance of $276 million to $282 million, as it expects sales to benefit from its new marketing initiatives. This compares to actual net sales of $266.3 million in fiscal 2005.
The company continues to expect fiscal 2006 diluted earnings per share in the range of $0.79 to $0.82, which includes (i) increased marketing expenditures; (ii) stock option expense of approximately $0.05 per diluted share; and (iii) Lillie Rubin exit costs of $0.21 per share and losses related to Lillie Rubin of $0.12 to $0.14 per share. This compares to actual fiscal 2005 diluted earnings per share of $0.83, including losses related to Lillie Rubin of $0.16 per share.
For the third quarter, the company is introducing guidance for net sales in the range of $60 million to $63 million, as compared to actual net sales of $57.3 million in the third quarter of fiscal 2005. Third quarter diluted earnings per share are currently estimated in the range of $0.07 to $0.09 per diluted share, which includes stock option expense of $0.01 per diluted share and losses related to Lillie Rubin of $0.02 to $0.04 per share. This compares to actual diluted earnings per share of $0.07 in the third quarter of fiscal 2005.
The company expects to open between 18 and 20 new Cache stores, convert two Lillie Rubin stores to Cache and convert 17 Lillie Rubin stores to its Cache Luxe format.
Cache Inc is a nationwide, mall-based specialty retailer of sophisticated, social occasion sportswear and dresses targeting style-conscious women. It targets women between the ages of 25 and 45 who have a youthful attitude, are self-confident and fashion-conscious, and require a missy fit.