Cache Posts Q1 Loss Of $0.51 Per Share - Quick Facts

(RTTNews) - Cache Inc. (CACH), a specialty chain of women's apparel stores, reported a first-quarter net loss of $10.8 million or $0.51 per share, and included a charge of $0.01 per share, in employee separation charges. This is compared 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, as well as a $1.5 million charge in employee separation charges.

On average, four analysts polled by Thomson Reuters expected the company to report a loss per share of $0.42 for the quarter. Analysts' estimates typically exclude special items.

Net sales decreased to $47.4 million from $53.5 million, prior year. The company said its 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. Analysts expected revenue of $49.58 million for the quarter.

Gross profit was $13.0 million, compared to $17.0 million, prior year. The company said 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.

Jay Margolis, CEO of Cache, said, "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."