US: Cache Q3 loss widens as sales slide
- Q3 loss widens to $6.4m
- Sales down 5.9% to $45.8m
- Results hurt by unfavourable product mix
Women's wear retailer Cache has seen its third-quarter losses widen after being hit by a tax-related charge and poor sales of its summer and autumn lines.
Net loss widened to US$6.4m during the 13 weeks ended 29 September, compared to a $1.8m loss last year. The loss included a $1.3m tax charge.
Operating loss also widened to $8.1m, compared with a $3m loss in the prior year. Net sales slipped 5.9% to $45.8m, while comparable store sales edged down 2.9%.
Chairman and CEO Thomas Reinckens said: "Our third quarter results were at the better end of our revised expectations, prior to an increase in the tax valuation allowance.
"Third quarter results were negatively affected by an unfavourable response to our summer and fall sportswear assortments, as well as an increase in the valuation allowance of $1.3m against net deferred tax assets."
The company said its search to find a new president is "well underway" and added that it is on track to achieve its $3m targeted savings in fiscal 2013.
"While we remain cautious as we enter the final quarter of the year, we are confident in our strategies, which we expect to enable us to improve our sales and margin trends as we enter 2013," added Reinckens.
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