Cache narrows losses in Q1

New York City Specialty-apparel retailer Cache reported Thursday a first quarter loss of $1.6 million, compared with a loss of $2.1 million in the year-ago quarter.

For the 13-week period ended March 28, the retailer reported net sales decreases of 21.7%, to $53.0 million, from $67.7 million in fiscal first quarter 2008. Same-store sales decreased 20.7%, compared with an increase of 3.3% for the same period last year.

Thomas Reinckens, chairman and CEO, said, “Our first-quarter results were at the better end of our expectations, reflecting the success of our strategies aimed at reducing costs and preserving cash flow.”

As the chain begins its second quarter, it expects to continue to benefit from cost-reduction plans and lower product costs through sourcing initiatives, he said.

During the first quarter, the company opened two new stores, closed four locations and operated 294 stores. The company closed two more stores after quarter end. For fiscal 2009, Cache plans to close approximately five additional stores, ending the year with approximately 287 locations. The company said it does not plan to open any additional new stores in fiscal 2009.