Le Chateau, a leading Canadian specialty retailer and manufacturer, has posted 51.0 per cent sales decline to $17.7 million in its first quarter (Q1) for fiscal 2020-21, that ended on April 25, 2020 compared to the sales of $36.1 million in the same period prior fiscal. Company incurred a net loss of $13.4 million (Q1 FY20: $10.8 million).
Le Chateau, a leading Canadian specialty retailer and manufacturer, has posted 51.0 per cent sales decline to $17.7 million in its first quarter (Q1) for fiscal 2020-21, that ended on April 25, 2020 compared to the sales of $36.1 million in the same period prior fiscal. Company incurred a net loss of $13.4 million (Q1 FY20: $10.8 million).#
“With the growing importance of e-commerce, we implemented a shift in strategy over five years ago by investing in our e-commerce platform, while significantly reducing our store network over that same period of time by almost 50 per cent from 243 stores to 126 well located, top-performing stores. We believe we now have the right balance between our digital and physical presence, which positions us well in a post Covid-19 world,” Le Chateau executive team said in a press release.
Gross profit for the first quarter of 2020 decreased to $10.4 million from $22.3 million for the same period last year. Adjusted EBITDA reported a loss of $5.2 million compared to earnings of $0.7 million in Q1 FY20.
“With most of our stores now open across Canada, we look forward to continuing to serve our customers safely, supported by our e-commerce business. We are also pleased to have reached agreements with the majority of our landlords concerning our Covid-19 rental obligations,” Le Chateau executive team said.
ALCHEMPro News Desk (JL)
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