"We reported excellent results for the first quarter of this year, but they failed to match our outstanding results for the first quarter of last year, when our net earnings increased by 112 percent over the previous year," noted Segal. "That was a tough number to surpass or even equal."
For the first quarter ended April 29th 2006 sales increased 1.0 percent to $61.2 million. Comparable store sales decreased 4.3 percent compared with the same period a year ago. Net earnings for the first quarter were $2.7 million or $0.45 per share (basic) compared to $4.6 million or $0.79 per share (basic) last year.
The Board of Directors also declared a dividend of $0.25 per share, which is the 51st consecutive quarter the company has declared a dividend.
"We have recaptured the momentum lost in the first quarter and, since the end of May, our numbers have been improving," remarked Segal. "In fact, during the month of June we returned to positive comparable store sales with a 1.2 percent increase. The rise in comparable sales may not yet be dramatic, but it's evident and trending steadily upward."
For the first eight weeks of the second quarter of fiscal 2007, total retail sales increased 2.4 percent and same store sales decreased 1.9 percent compared to the same period last year.
Segal identified Le Château's challenges and goals for the remaining months of this year:
-- The company is reasserting itself in ladies wear. It is reaffirming its fashion leadership in that segment. It is focused on returning to healthy comparable store increases in both its ladies and accessories divisions;
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