Second quarter profit at specialty women's wear retailer Caché Inc has soared by 63.9% after improved pricing and the acquisition of Adrienne Victoria Designs pushed sales up by 4.1%.

The results, which beat recently raised guidance, prompted the New York based company to affirm its outlook for the third and fourth quarters.

Net income for the three months to 28 June rose to $2.1m or $0.16 per share, from $1.3m or $0.08 per diluted share in the same period last year.

Net sales increased to $74.0m from $71.0m, and comparable store sales were up 3%.

Thomas Reinckens, chairman and chief executive officer, commented: "Our strength in an ongoing difficult consumer spending environment validates the success of our merchandising and marketing strategies, including our emphasis on collection dressing.

"These efforts are expected to raise sales productivity and operating margins going forward as we benefit from increases in shopping frequency, expansion of our customer base and greater leverage of expenses."

He added that July month-to-date comparable store sales are tracking to plan.

Gross profit in the second quarter fell to $34.2m, or 46.2% of net sales, compared to $33.9m, or 47.8% of net sales, in the second quarter of fiscal 2007.

This was driven by additional costs associated with the in-house design team acquired with Adrienne Victoria Designs in July 2007.

The company is maintaining its previous guidance for the third and fourth quarters of fiscal 2008 and increasing the low end of its 2008 fiscal year guidance.

For the third quarter it expects net sales in the range of $62m to $64m, against $60.6m in last year's quarter, and earnings per share in the range of $0.01 to $0.02.

Fourth quarter sales and earnings are seen higher than last year's $78.5m and $0.32 per share, at $82m to $84m and $0.38 to $0.40 respectively.

For the full fiscal year, net sales are forecast in the range of $286m to $290m and earnings per share in the range of $0.39 to $0.42.

This compares to actual fiscal 2007 net sales of $274.5m and earnings per share of $0.40.
Cache operates 296 Cache and Cache Luxe stores.