Cache Posts Wider Loss In Q3 Despite Higher Sales - Update

(RTTNews) - Cache, Inc. (CACH), a women's apparel stores chain, Tuesday reported a wider loss for the third quarter, reflecting higher operating expenses, as well as an income tax benefit in the prior year. Quarterly sales increased, with 6 percent rise in comparable store sales.

For the third quarter, the company's net loss widened to $8 million from $6.38 million in the previous year. Meanwhile, loss per share was $0.38, narrower than $0.49 last year, reflecting higher share count.

On an adjusted basis, loss was $0.35 per share, while the company posted a loss of $0.38 per share in the third quarter of fiscal 2012.

Two analysts polled by Thomson Reuters expected the company to report a loss of $0.23 per share for the quarter. Analysts' estimates typically exclude special items.

For the recent quarter, the firm posted an income tax provision of $8 thousand, while the prior year had a benefit of $1.71 million.

Net sales increased 3.1 percent to $47.22 million from $45.79 million a year earlier. Comparable store sales were up 6 percent, compared to a decrease of 2.9 percent in the year-ago quarter.

Gross profit margin improved 150 basis points to 33.5 percent, mainly due to lower design, production and sourcing costs, as well as a decrease in markdowns and higher sales, compared to the previous year.

Total operating expenses advanced to $23.77 million from $22.77 million in the same quarter last year.

Jay Margolis, chairman and chief executive officer said, "Our third quarter results included solid progress on our key merchandising, store and e-commerce initiatives that we identified at the start of the year and are expected to position Cache for profitability and sustained long term growth."

The company ended the period with 250 stores in operation, compared to 262 stores last year.

CACH closed Monday's regular trading at $6.24 on the Nasdaq.