Cache Inc. (CACH, Financial) filed Quarterly Report for the period ended 2009-09-26.
Cache Inc. is a specialty retailer which operates stores selling women's apparel and accessories under the trade names Cache and Lillie Rubin. Stores are concentrated in large metropolitan and suburban areas and are located in the finest shopping malls in the country. The typical store averages 2000 square feet. The company's merchandise assortment store format is classified under three major categories: sportswear dresses and accessories. Cache Inc. has a market cap of $63.3 million; its shares were traded at around $4.97 with and P/S ratio of 0.2.
During the 39-week period ended September 26, 2009, store operating expenses decreased to $57.8 million from $71.7 million, a decrease of $13.9 million, or 19.4%, as compared to the same 39-week period last year. Store operating expenses decreased primarily due to the Companys initiatives to reduce costs and preserve cash. Due to these initiatives, the Company achieved reductions primarily in payroll expenses ($6.3 million), advertising expense ($2.5 million), depreciation expense ($1.4 million), group and liability insurance expense ($1.4 million) and credit card fees ($950,000). Payroll expenses were lower primarily due to a reduction in hours worked by store employees. The decline in advertising expense was primarily due to a reduction in spending for direct mail and production costs related to printed materials. Depreciation expense decreased as a result of certain assets being fully depreciated prior to fiscal 2009, the closure of 16 underperforming stores, as indicated below, under Store exit costs and due to the Companys decision to reduce capital expenditures in fiscal 2009. Group and liability insurance expense decreased due to changes in the Companys medical plan, coupled with reduction in premiums for liability insurance resulting from renegotiated contracts. A reduction in credit card fees was noted due to a decrease in sales coupled with renegotiated contracts. As a percentage of net sales, store operating expenses increased to 37.4% from 35.9% for the fiscal 2009 39-week period as compared to the prior year period, due to the reduction in sales volume in fiscal 2009.
During the 13-week period ended September 27, 2009, store operating expenses decreased to $18.6 million from $23.0 million, a decrease of $4.4 million, or 19.3%, as compared to the same 13-week period last year. Store operating expenses decreased primarily due to the Companys initiatives to reduce costs and preserve cash. Due to these initiatives, the Company achieved reductions primarily in payroll expenses ($1.9 million), advertising expense ($785,000), depreciation expense ($394,000), as well as, group and liability insurance ($706,000). The decreases in payroll, advertising, depreciation and insurance expenses were due to the reasons noted in the preceding paragraph. As a percentage of net sales, store operating expenses increased to 41.4% from 39.6% for the fiscal 2009 13-week period as compared to the prior year period, due to the reduction in sales volume in fiscal 2009.
During the 39-week period ended September 26, 2009, general and administrative expenses decreased to $13.3 million from $16.7 million, a decrease of $3.4 million, or 20.0%, as compared to the same 39-week period last year. The decrease in general and administrative expenses was primarily due to the Companys initiatives to reduce costs and preserve cash. In total, payroll expenses decreased by $1.4 million, primarily due to the one time charges associated with management changes incurred during fiscal 2008 in the amount of $616,000, combined with a reduction of base salaries paid to several of the Companys officers and a reduction in headcount. In addition, shipping and commission expenses paid in connection with our Mary L. division decreased by $549,000, due to a decrease in Mary L. sales and also due to a discontinuation of outsourced shipping services for Mary L. products, which are now being shipped through the Companys primary carrier. Travel expense decreased by $617,000 due to a reduction in travel by corporate and regional management, as well as, a decrease in professional fees for $537,000 due to reduced legal activity in fiscal 2009. As a percentage of net sales, general and administrative expenses increased to 8.6% from 8.3% in fiscal 2009, due to the reduction in sales volume in fiscal 2009.
During the 13-week period ended September 26, 2009, general and administrative expenses decreased to $4.4 million from $4.8million, a decrease of $448,000, or 9.3%, as compared to the same 13-week period last year. The decrease in general and administrative expenses was primarily due to the Companys initiatives to reduce costs and preserve cash. In total, payroll expenses decreased by $104,000, primarily due to a reduction of base salaries paid to several of the Companys officers combined with a reduction in headcount. Additional decreases in expenses were noted for travel expense of $115,000, due to a reduction in travel by corporate and regional management, as well as, a reduction in professional fees of $90,000. As a percentage of net sales, general and administrative expenses increased to 9.7% from 8.3% in fiscal 2009, due to the reduction in sales volume in fiscal 2009.
During the 39-week period ended September 26, 2009, cash and equivalents increased by $494,000, primarily due to decreases in receivables and income tax receivables ($4.9 million), as a result of cash collected on the income tax receivable recorded during fiscal 2008. Decrease in inventories ($1.9 million) and an increase in accounts payable ($1.3 million) also contributed to the net increase in cash and equivalents. Inventories decreased primarily due to Companys efforts to better align the inventory to the decreased sales volumes at stores. These increases in cash were offset by net purchases of marketable securities ($2.2 million), certificates of deposit restricted ($1.5 million) used as collateral for outstanding letters of credit, as well as, purchases of equipment and leasehold improvements ($1.3 million) for our new and remodeled stores. Decreases were also noted from repurchases of common stock ($586,000) and repayment of a note payable ($952,000) in connection with the acquisition of AVD.
Read the The complete ReportCACH is in the portfolios of Michael Price of MFP Investors LLC.
Cache Inc. is a specialty retailer which operates stores selling women's apparel and accessories under the trade names Cache and Lillie Rubin. Stores are concentrated in large metropolitan and suburban areas and are located in the finest shopping malls in the country. The typical store averages 2000 square feet. The company's merchandise assortment store format is classified under three major categories: sportswear dresses and accessories. Cache Inc. has a market cap of $63.3 million; its shares were traded at around $4.97 with and P/S ratio of 0.2.
Highlight of Business Operations:
During the 13-week period ended September 26, 2009, net sales decreased to $44.9 million from $58.1 million, a decrease of $13.2 million, or 22.7%, as compared to the same 13-week period last year. This reflects $12.1 million of reduced net sales, as a result of a 21.7% decrease in comparable store sales, a decrease of $174,000 of net sales from our Mary L. division, and a decrease of $1.0 million from our non-comparable store sales, which was offset by a small increase in income recognized from our co-branded credit card. The decrease in net sales for the fiscal 2009 13-week period was due to the same reasons stated above. The decrease in net sales in the quarter at Cache stores reflected a 0.7% decrease in sales transactions and a 21.2% decrease in average dollars per transaction.During the 39-week period ended September 26, 2009, store operating expenses decreased to $57.8 million from $71.7 million, a decrease of $13.9 million, or 19.4%, as compared to the same 39-week period last year. Store operating expenses decreased primarily due to the Companys initiatives to reduce costs and preserve cash. Due to these initiatives, the Company achieved reductions primarily in payroll expenses ($6.3 million), advertising expense ($2.5 million), depreciation expense ($1.4 million), group and liability insurance expense ($1.4 million) and credit card fees ($950,000). Payroll expenses were lower primarily due to a reduction in hours worked by store employees. The decline in advertising expense was primarily due to a reduction in spending for direct mail and production costs related to printed materials. Depreciation expense decreased as a result of certain assets being fully depreciated prior to fiscal 2009, the closure of 16 underperforming stores, as indicated below, under Store exit costs and due to the Companys decision to reduce capital expenditures in fiscal 2009. Group and liability insurance expense decreased due to changes in the Companys medical plan, coupled with reduction in premiums for liability insurance resulting from renegotiated contracts. A reduction in credit card fees was noted due to a decrease in sales coupled with renegotiated contracts. As a percentage of net sales, store operating expenses increased to 37.4% from 35.9% for the fiscal 2009 39-week period as compared to the prior year period, due to the reduction in sales volume in fiscal 2009.
During the 13-week period ended September 27, 2009, store operating expenses decreased to $18.6 million from $23.0 million, a decrease of $4.4 million, or 19.3%, as compared to the same 13-week period last year. Store operating expenses decreased primarily due to the Companys initiatives to reduce costs and preserve cash. Due to these initiatives, the Company achieved reductions primarily in payroll expenses ($1.9 million), advertising expense ($785,000), depreciation expense ($394,000), as well as, group and liability insurance ($706,000). The decreases in payroll, advertising, depreciation and insurance expenses were due to the reasons noted in the preceding paragraph. As a percentage of net sales, store operating expenses increased to 41.4% from 39.6% for the fiscal 2009 13-week period as compared to the prior year period, due to the reduction in sales volume in fiscal 2009.
During the 39-week period ended September 26, 2009, general and administrative expenses decreased to $13.3 million from $16.7 million, a decrease of $3.4 million, or 20.0%, as compared to the same 39-week period last year. The decrease in general and administrative expenses was primarily due to the Companys initiatives to reduce costs and preserve cash. In total, payroll expenses decreased by $1.4 million, primarily due to the one time charges associated with management changes incurred during fiscal 2008 in the amount of $616,000, combined with a reduction of base salaries paid to several of the Companys officers and a reduction in headcount. In addition, shipping and commission expenses paid in connection with our Mary L. division decreased by $549,000, due to a decrease in Mary L. sales and also due to a discontinuation of outsourced shipping services for Mary L. products, which are now being shipped through the Companys primary carrier. Travel expense decreased by $617,000 due to a reduction in travel by corporate and regional management, as well as, a decrease in professional fees for $537,000 due to reduced legal activity in fiscal 2009. As a percentage of net sales, general and administrative expenses increased to 8.6% from 8.3% in fiscal 2009, due to the reduction in sales volume in fiscal 2009.
During the 13-week period ended September 26, 2009, general and administrative expenses decreased to $4.4 million from $4.8million, a decrease of $448,000, or 9.3%, as compared to the same 13-week period last year. The decrease in general and administrative expenses was primarily due to the Companys initiatives to reduce costs and preserve cash. In total, payroll expenses decreased by $104,000, primarily due to a reduction of base salaries paid to several of the Companys officers combined with a reduction in headcount. Additional decreases in expenses were noted for travel expense of $115,000, due to a reduction in travel by corporate and regional management, as well as, a reduction in professional fees of $90,000. As a percentage of net sales, general and administrative expenses increased to 9.7% from 8.3% in fiscal 2009, due to the reduction in sales volume in fiscal 2009.
During the 39-week period ended September 26, 2009, cash and equivalents increased by $494,000, primarily due to decreases in receivables and income tax receivables ($4.9 million), as a result of cash collected on the income tax receivable recorded during fiscal 2008. Decrease in inventories ($1.9 million) and an increase in accounts payable ($1.3 million) also contributed to the net increase in cash and equivalents. Inventories decreased primarily due to Companys efforts to better align the inventory to the decreased sales volumes at stores. These increases in cash were offset by net purchases of marketable securities ($2.2 million), certificates of deposit restricted ($1.5 million) used as collateral for outstanding letters of credit, as well as, purchases of equipment and leasehold improvements ($1.3 million) for our new and remodeled stores. Decreases were also noted from repurchases of common stock ($586,000) and repayment of a note payable ($952,000) in connection with the acquisition of AVD.
Read the The complete ReportCACH is in the portfolios of Michael Price of MFP Investors LLC.
