Lower-than-expected sales and increased markdowns led Caché Inc. to an expanded third-quarter loss, but the women’s apparel retailer said it expects to be profitable in the fourth quarter.
The New York-based firm said for the period ended Sept. 26, its net loss rose to $6.8 million, or 53 cents a diluted share, compared with a loss of $1.6 million, or 12 cents a share, in the year-ago quarter.
Excluding separation agreement costs, the company said its net loss totaled $5.5 million, or 43 cents a share, versus a net loss of $1.4 million, or 10 cents a share, last year.
Net sales fell 22.7 percent to $44.9 million, from $58.1 million in 2008, as quarterly same-store sales declined 21.7 percent, versus a 3.9 percent dip last year. Analysts polled by Yahoo were looking for a net loss of 20 cents a share on revenue of $48.3 million. Gross profit for the quarter was $14.2 million, or 31.6 percent of net sales, versus $25.6 million, or 44.1 percent of net sales, a year earlier.
Chairman and chief executive officer Thomas Reinckens said on an earnings call the “disappointing” results were due in part to “accelerated” markdowns to clear out inventory in anticipation of new fall and holiday assortments, as well as a “less-than-enthusiastic response” to promotional offers in its September mailer. Because discounts in the mailer were not as steep as a year ago, the ceo concluded the consumer is still “very much focused on the coupon on offer.”
As a result, Caché returned with its typical offer in its October mailer, and has since seen sales trends improve, Reinckens said. The company will “intensify the breadth” of its opening price point offerings in the future, he said, and planned to offer larger sizes and expand its casual assortment.
For the nine months, Caché said its net loss expanded to $7.5 million, or 59 cents a share, compared with a loss of $1.6 million, or 12 cents a share, a year earlier. Excluding onetime items, the retailer said its net loss was $6.2 million, or 48 cents, versus a profit of $531,000, or 4 cents a share. Revenue contracted 22.5 percent to $154.8 million, from $199.8 million, in the prior year.
The retailer introduced fourth-quarter earnings guidance of between 12 cents and 15 cents a share, on sales in the range of $62 million to $64 million. Analysts had anticipated earnings per share of 8 cents on revenue of $60.9 million.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews