Le Château Inc (TSE: CTU.A) today reported sales of $36.4m for the second quarter ended July 29, 2000, compared with sales of $41m for the same period last year.

The Company recorded a net loss for the quarter of $1,333,000 or $0.27 per share compared to a net profit of $1,098,000 or $0.22 per share for the same period the previous year.

Herschel Segal, Le Château's chairman, said: "The weak sales, which commenced in the first quarter, persisted through the second quarter, necessitating aggressive promotions resulting in lower gross margins. To date, our customers have shown a positive response towards our new fall collection, giving us confidence of a stronger sales trend for the remainder of the year."

Six-month results
Sales decreased 7.9 per cent to $70m compared with sales of $76m for the first half last year. Net loss for the six-month period totalled $2,782,000 or $0.56 per share compared to a net profit $783,000 or $0.16 per share last year.

Year-to-date, the company has invested $6.3m in capital expenditures of which $4.9m was for the opening of six stores and the renovation of twelve others. An additional three stores are scheduled to open this year.

About Le Château
Le Château is a store brand retailer of moderately priced apparel, accessories and footwear aimed at fashion-conscious men, women and tweens. Customers are predominantly in the 15-25 year old age group while the JUNIOR GIRL brand targets the 8-14 year old segment.

Le Château brand name clothing is sold through 158 retail stores -which average 3,000 sq ft. In addition, the company operates six Le Château Fashion Outlet Stores and two Franchised Outlet Stores. All stores are in Canada, except for five in the New York City area.