Cache, Inc., (NASDAQ: CACH), a specialty chain of women’s apparel stores
today announced estimated third quarter fiscal 2012 sales results and
updated third quarter earnings guidance for the 13-week period ended
September 29, 2012. The Company expects to report full results for the
third quarter the week of November 12, 2012.
Net sales for the third quarter of fiscal 2012 are expected to be
approximately $45.8 million, a decline of approximately $2.9 million
from net sales of $48.7 million in the third quarter of fiscal 2011.
Comparable store sales declined approximately 3% following a comparable
store sales increase of 5.7% in the third quarter of fiscal 2011. Net
loss per share for the third quarter of fiscal 2012 is currently
expected in the range of $0.39 to $0.41. This compares to a net loss per
diluted share of $0.14 in the third quarter of fiscal 2011. The
Company’s balance sheet remains strong; the Company expects to have
ended the third quarter with cash and marketable securities of
approximately $17 million with no funded debt. Inventory at quarter end
is expected to be flat with last year a marked improvement from the 21%
increase reported at the end of the second quarter of fiscal 2012.
The Company also announced that it has retained the firm of
Berglass+Associates to assist in the search for a President, Chief
Merchandising Officer. In addition, during the quarter, the Company
implemented a cost reduction program, which is expected to generate $3
million in annualized savings in fiscal 2013.
Thomas Reinckens, Chairman and Chief Executive Officer, commented:
“While we expected our third quarter performance to be negatively
impacted by increased promotional activity to clear our summer
sportswear assortment, sales of our early fall offerings were equally
challenging, lacking the fashion that our customers expect from Cache.
This led to the revision to our third quarter guidance.”
“We recognize more work needs to be done to bring about consistency in
our sales performance and return our Company to profitability and
positive sales growth. In the near term, we are focused on identifying a
President and are working aggressively to re-balance our sportswear
assortments. We also intend to seek to capitalize on up-trending areas
of our business such as dresses and our e-commerce channel. At the same
time, we are implementing a cost savings program that we expect will
generate $3 million in annualized savings in fiscal 2013. We remain
confident that we are taking the right steps to improve our near term
performance and return our Company to long term sustainable growth.”
About Cache, Inc.
Cache is a nationwide, mall-based specialty retailer of sophisticated
sportswear and social occasion dresses targeting style-conscious women
who have a youthful attitude and are self-confident. The Company
currently operates 262 stores, primarily situated in central locations
in high traffic, upscale malls in 42 states, the Virgin Islands and
Puerto Rico.
Forward-Looking Statements
Certain matters discussed within this press release may constitute
forward-looking statements within the meaning of the federal securities
laws. Although Cache, Inc. believes the statements are based on
reasonable assumptions, there can be no assurance that these
expectations will be attained. Actual results and timing of certain
events could differ materially from those projected in or contemplated
by the forward-looking statements due to a number of factors, including,
without limitation, industry trends, merchandise and fashion trends,
competition, seasonality, changes in general economic conditions and
consumer spending patterns, the ability to successfully open new stores,
reliance on foreign manufacturers, dependence on management and vendors
and distributors and our inability to hire a new President or to achieve
anticipated cost-savings in our business, as well as other risks
outlined from time to time in the filings of Cache, Inc. with the
Securities and Exchange Commission. Cache, Inc. assumes no obligation to
update any forward-looking statements, whether as a result of new
information, future events or otherwise.
