Cache Inc.’s third-quarter net loss deepened as the women’s apparel retailer saw slumping demand on top of a higher tax-related cost for the period.
For the quarter ended Sept. 29, Caché posted a net loss of $6.4 million, or 49 cents a diluted share, compared with a year-ago loss of $1.8 million, or 14 cents. According to the retailer, the most recent quarter included a 10-cent charge for an increase in the tax valuation allowance. In October, Caché forecasted a net loss of between 39 cents and 41 cents.
The retailer said Monday that net sales for the quarter fell 5.9 percent to $45.8 million from $48.7 million.
Analysts were looking for a loss of 1 cent a share on sales of $61.5 million.
Tax-related charge aside, Caché’s chairman and chief executive officer Thomas Reinckens cited lackluster fashion as part of the problem. This materialized in the retailer’s gross margin, which fell to 32 percent of sales versus 40.6 percent, as Caché increased markdowns during the quarter in order to clear out unexciting seasonable wares.
“Third-quarter results were negatively affected by an unfavorable response to our summer and fall sportswear assortments, as well as an increase in the valuation allowance of $1.3 million against net deferred tax assets,” said Reinckens. “We have identified the actions that we believe are necessary to bring about a positive change in our business.”
Caché predicts fourth-quarter adjusted earnings per share of between 1 and 3 cents, which tops Wall Street’s outlook of a 1-cent loss.
Taking the final spot on the mens’ portion of New York Fashion Week calendar next month will be none other than @tomford. Though he’s shown his men’s wear in New York in the past, this will mark the first time the designer has shown his men’s collection alone during New York Fashion Week: Men’s. His runway show will debut on February 6 at the Park Avenue Armory. #wwdfashion
London-based couture house @ralphandrusso has certainly been in the spotlight, having its dresses worn by @beyonce, Angelina Jolie, Meghan Markle in her engagement photos and more. For couture, Tamara Ralph focused on ornamentation — think: feathers with chain mail, jet embroidery and clusters of pearls and crystals. See the rest of the collection on WWD.com #wwdfashion #couture (📷: @giovanni_giannoni_photo)
Minnie Mouse celebrated her 90th birthday by getting her own star on the Hollywood Walk of Fame. For her celebratory luncheon, @coach’s creative director @stuartvevers dressed her in a custom made prairie dress, complete with Vever’s take on the polka dot – black sequined versions – under a cropped motorcycle jacket. The designer also put his own mark on Minnie’s classic red shoes, infusing the color with sparkles and adding some Coach crystals. “We chose colors that were very Minnie and also represented quintessential Coach elements,” said Vevers. #wwdfashion #nationalpolkadotday (📷: George Chinsee)
@nickjonas is unveiling his first-ever apparel collection through a partnership with John Varvatos. The limited-edition capsule, which makes its debut in spring, also marks the first time the designer has collaborated with anyone on a line. “The process in working with Nick is amazing. It’s inspiring to be around someone who is not only connected with the trade that they do, but also with what’s happening in the environment around him, and how that connects to what we do with style,” said Varvatos. (RG: @johnvarvatos) #wwdfashion
@margotrobbie steps out onto the red carpet wearing @miumiu. The actress is nominated for “Outstanding Performance by a Female Actor in a Leading Role” in “I, Tonya” at the #SagAwards. (📷: Stewart Cook) #wwdfashion
For @massimogiorgetti of @msgm, the Nineties are his favorite decade. “They had a huge impact on my personal growth. What I like of the Nineties is that they are not so precise in terms of style as other decades…there was actually a bit of everything,” he said. As seen on MSGM’s Spring 2018 show: tie-dye and a bit of grunge, two styles that are synonymous with the decade #wwdfashion #wwddecades (📷: @kukukuba)