Cache Reports Third Quarter Fiscal 2012 Sales Results and Updates Third
Quarter EPS Guidance
Initiates a Search for a President, Chief Merchandising Officer
Expects Annualized Cost Savings of $3.0Million in Fiscal 2013
NEW YORK -- October 04, 2012
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
“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
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.
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.
Maggie Feeney, 212-575-3206
Executive Vice President and
Chief Financial Officer
Allison Malkin/Rachel Schacter
203-682-8225 / 646-277-1243
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