• Q2 losses of $3.2m, versus $1m profit last year 
  • Net sales slipped 2.5% to $60.1m from $61.6m 
  • Comparable store sales edged up 0.5%
  • Gross margin dropped to 34.7% versus 42.8%

US women's wear retailer Cache remains confident in its outlook despite making losses of US$3.2m during the second quarter. 

Chairman and CEO Jay Margolis said: “We are pleased with the progress made toward our strategic objectives during the second quarter."

The company focused on clearing assortments that were not consistent with its merchandising plan and significantly reduced online promotional activity, while continuing to make strategic hires, he explained. 

"While our turnaround efforts negatively impacted profitability in the quarter, this activity allowed us to begin the third quarter in an improved position," Margolis added.

Looking forward, comparable store sales have been positive during the first six weeks of the third quarter, driven by increased traffic and regular price selling. 

"I expect our sales performance to continue to strengthen, as a greater percentage of our assortments are impacted by our moves, and we see the initial benefits from our process and marketing changes," Margolis noted. 

"I remain confident in our strategies and our ability to achieve improved operating performance in the near term and put us on a path to achieve sustained profitable long term growth in the future."