Caché Inc.’s first-quarter losses widened as the company increased spending on marketing and its e-commerce business.
Losses came in as the company and Wall Street expected, totaling $1.2 million, or 9 cents a share. That compared with a deficit of $772,000, or 6 cents, a year earlier. Sales for the quarter ended March 31 rose 7.5 percent to $56 million from $52.1 million on 9.4 percent gain in comparable-store sales.
Thomas Reinckens, chairman and chief executive officer, said the comp sales increase showed the company had momentum but that “increased expenses related to our brand building and e-commerce growth initiatives contributed to the increase in our operating loss.”
Reinckens said the second quarter had also gotten off to a slow start with April comps rising just 3 percent.
Caché is looking for earnings of 19 cents to 22 cents a diluted share in the second quarter, potentially on par with profits of 22 cents a year earlier. That’s less than the 25 cents in earnings analysts were projecting.
Rinckens also said that Jane Inman joined the company last month as senior vice president of stores.