Cache Inc announced that comparable store sales decreased 2% during the four-week May 2007 period, as compared to an increase of 6% in the same period last year.
Total net sales for the four-week period ended May 26, 2007 decreased 3.5% to $21.9 million, as compared to the four-week period ended May 27, 2006. Revenue for the fiscal 2006 period included $1.3 million in sales from the former Lillie Rubin chain.
For the twenty-one-week fiscal 2007 period ended May 26, 2007, comparable store sales increased 2%, as compared to an increase of 6% in the same period last year. Total net sales for the twenty-one-week period were basically flat at $113.3 million this year. Revenue for the fiscal 2006 twenty-one-week period included $7.5 million in sales from the former Lillie Rubin chain.
“We are disappointed in our May sales results, which reflected continued softness in our spring/summer knit top assortments partially offset by strength in dresses,” began Brian Woolf, Chairman and Chief Executive Officer of Cache Inc.
“We are currently taking the markdowns necessary to end the quarter in a healthy inventory position and are re-balancing our assortments to be in a better position for the fall/holiday season. Based on this, we have reduced expectations for the second quarter and full fiscal year.”
“As we look ahead, we remain confident in our business strategies and optimistic that our initiatives in product, sourcing and marketing will result in improved performance beginning with our fourth quarter this year,” Mr. Woolf continued.
“To this end, in the third quarter, we will anniversary the increase in our marketing costs and plan these expenses below the prior year levels in each of the third and fourth quarters. We also expect to benefit from the infusion of talent in our design and production organizations stemming from the acquisition of Adrienne Victoria Designs.”
The Company is revising its sales and earnings guidance for the second quarter and fiscal 2007 year while introducing third and fourth quarter fiscal 2007 guidance. The Company's current guidance assumes comparable stores sales are flat to down slightly for the second quarter of fiscal 2007 and decline by 2% for the third quarter of fiscal 2007.
marketing@alchempro.com
