Cache Q2 profit plummets, still beats Street

New York City Cache reported late Monday that second-quarter earnings slid 60% on declining same-store sales, but the women’s apparel retailer still managed to beat Wall Street expectations.

Earnings for the 13-week period ended June 27 dropped to $845,000, from $2.11 million a year earlier.

Sales declined 23% amid weak consumer spending to $56.9 million. Analysts expected revenue of $58.6 million.

Same-store sales dropped 23% compared to an increase of 3.0% in second-quarter fiscal 2008.

Thomas Reinckens, chairman and CEO, said: “While the weak consumer spending environment pressured our sales performance during the quarter, we are encouraged by the favorable response to our merchandise categories where we offer compelling value and differentiation in fashion, with particular strength in day dresses, value-priced accessories and tops.”

Reinckens added that Cache expects to expand on the successful areas in the fall, which he says will enable the company to improve comp-store sales performance.

During the second quarter, Cache opened no new stores and closed three locations, ending the period with 291 stores in operation. For the remainder of fiscal 2009, the company said it plans to open one or two additional new stores and close approximately two or three locations, ending the year with approximately 289 stores and approximately 585,000 sq. ft. in operation.