GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Cache Inc. Reports Operating Results (10-Q)

November 04, 2011 | About:
10qk

10qk

18 followers
Cache Inc. (CACH) filed Quarterly Report for the period ended 2011-10-01.

Cache Inc. has a market cap of $64.3 million; its shares were traded at around $5.01 with and P/S ratio of 0.3.

Highlight of Business Operations:

During the 39-week period ended October 1, 2011, net sales increased to $161.0 million from $150.6 million, an increase of $10.4 million, or 6.9%, as compared to the same 39-week period last year. The increase in net sales is primarily due to an increase in comparable store sales of $9.5 million, or 6.4% and an increase in non-comparable store sales of $456,000. We continue to believe

During the 13-week period ended October 1, 2011, net sales increased to $48.7 million from $45.5 million, an increase of $3.1 million, or 6.9%, as compared to the same 13-week period last year. The increase in net sales is primarily due to an increase in comparable store sales of approximately $2.5 million or 5.7% and an increase in non-comparable store sales of $417,000. The increase in net sales at our stores for the quarter reflected a 6.8% increase in average dollars per transaction, partially offset by a 1.1% decrease in sales transactions.

During the 39-week period ended October 1, 2011, gross profit increased to $69.2 million from $57.6 million, an increase of $11.6 million, or 20.2%, as compared to the same 39-week period last year. This increase was primarily due to an increase in net sales, as described above, as well as an increase in initial mark-up. As a percentage of net sales, gross profit increased to 43.0% from 38.2% for the current 39-week period, as compared to the prior year period. This increase was primarily due to an increase in full-price sales, an increase in our initial mark-up and a decrease in markdowns as a percentage of sales, as well as the impact from higher sales, as it relates to occupancy and operational costs in our design, production and sourcing departments.

During the 39-week period ended October 1, 2011, store operating expenses increased to $56.0 million from $55.8 million, an increase of $230,000, or 0.4%, as compared to the same 39-week period last year. Store operating expenses increased primarily due to an increase in payroll and payroll-related tax expenses of $1.6 million, health insurance of $424,000 and outside services of $308,000, which primarily consisted of internet support services. These increases were partially offset by a decrease in marketing expense of $1.2 million and depreciation expense of $921,000. The increase in payroll and payroll-related costs was primarily due to our maximizing store coverage during high customer traffic periods. The increase in health insurance was primarily due to an increase in health insurance claims. The decrease in marketing expense was primarily due to a reduction in spending on direct mail and production costs related to printed materials. The decrease in depreciation expense was primarily due to certain assets being fully depreciated, coupled with the impairment of 15 underperforming stores during the fourth quarter of fiscal 2010. As a percentage of net sales, store operating expenses decreased to 34.8% from 37.0% for the current 39-week period, as compared to the prior year period, primarily due to the increase in net sales.

During the 13-week period ended October 1, 2011, store operating expenses increased to $18.5 million from $18.0 million, an increase of $504,000, or 2.8%, as compared to the same 13-week period last year. Store operating expenses increased primarily due to an increase in payroll and payroll related tax expenses of $763,000, as well as an increase in health insurance expense of $368,000, which was partially offset by a decrease in marketing expense of $441,000 and depreciation expense of $364,000. The increase in payroll and payroll-related costs was primarily due to our maximizing store coverage during high customer traffic periods. The increase in health insurance was primarily due to an increase in health insurance claims. The decrease in marketing expense was primarily due to a reduction in spending on direct mail and production costs related to printed materials. The decrease in depreciation expense was primarily due to certain assets being fully depreciated, coupled with the impairment of 15 underperforming stores during the fourth quarter of fiscal 2010. As a percentage of net sales, store operating expenses decreased to 37.9% from 39.4% for the current 13-week period, as compared to the prior year period.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 5.0/5 (1 vote)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide