Cache 1Q loss widens on income tax provision
NEW YORK (AP) — Cache's fiscal first-quarter loss widened, mostly pulled down by a large income tax provision and employee separation costs.
Chairman and CEO Jay Margolis said in a statement on Tuesday that Cache's quarterly performance was hindered by reduced online promotions and increased markdowns on products from previous seasons, mostly in sportswear.
For the period ended March 30, the women's clothing company lost $18.5 million, or $1.38 per share. That compares with a loss of $1.2 million, or 9 cents per share, a year earlier.
The current quarter included an income tax provision of $10.2 million, while the prior-year period included an income tax benefit of $797,000. The current quarter also included employee separation costs of 11 cents per share.
Stripping out the tax item and employee separation costs, the company lost 51 cents per share.
Revenue for the New York-based company declined 5 percent to $53.5 million from $56 million.
Revenue at stores open at least a year fell 1.5 percent. This metric is a key gauge of a retailer's health because it excludes results from stores recently opened or closed.
Cache Inc. currently runs 249 stores in 41 states, the Virgin Islands and Puerto Rico.
Its shares finished at $3.94 on Monday. Its shares traded in a 52-week range of $1.59 to $4.31.