• Operating income was $801,000 including $1.0 million in legal settlement costs, as compared to $4.4 million in the first half of fiscal 2006, including $5.7 million in exit costs for the Lillie Rubin business and $2.8 million in Lillie Rubin operating losses;
• Net income was $1.4 million, or $0.09 per diluted share including $0.04 per diluted share in legal settlement costs. This compares to net income in the fiscal 2006 period of $3.4 million, or $0.21 per diluted share, which includes $0.21 per diluted share in exit costs for the Lillie Rubin business and $0.10 per diluted share in Lillie Rubin business losses.
Following quarter end, the Company announced that it completed its acquisition of Adrienne Victoria Designs.
Mr. Brian Woolf, Cache's Chairman, commented: “The second quarter proved difficult for Cache. While meeting the high end of our revised guidance, our earnings were below a year ago, reflecting increased markdowns taken to clear spring and summer sportswear merchandise".
"We did experience continued sales strength in our dress assortments during the quarter and believe our efforts to re-balance our sportswear assortments toward lifestyle collections will prove positive this fall. We were also very excited to announce and complete the acquisition of Adrienne Victoria Designs, thereby advancing our strategy to become a vertically integrated retailer, while increasing the depth of talent in design, sourcing and production.”
marketing@alchempro.com
