Cache reports widened loss in Q1

New York City Cache reported a loss of $4.1 million in its fiscal first quarter, compared with a loss of $1.6 million in the year-ago period.

Net sales for the quarter decreased 8.4% to $48.6 million, from $53.0 million in the first quarter of fiscal 2009. Same-store sales decreased 6.8%, compared with a decline of 20.7% in the first quarter of fiscal 2009.

“Our first-quarter results included significant progress toward achieving our merchandising, design and planning goals. Our first-quarter results can be attributed to our decision to reduce inventory during January and February, through increased markdowns to expedite the new merchandising initiatives, which caused a significant decline in our merchandise margin for the quarter,” said Thomas Reinckens, chairman and CEO. “However, our new deliveries, which were introduced in March and are reflective of our ongoing direction, were received favorably by our customers, driving positive comparable store sales for the month.”