Cache Inc. (CACH: Quote) updated its fourth-quarter outlook, now expecting earnings per share to be in the range of $0.16 to $0.18, exclusive of any potential asset impairment costs, versus its previous guidance of $0.24 - $0.30. On average, 4 analysts polled by Thomson Reuters estimate earnings per share of $0.24 for the fourth quarter. Analysts' estimates typically exclude one-time items. Also, based on preliminary results, the company said it sees fourth-quarter comparable-store sales to increase 12%, consistent with its original outlook for a comparable-store sales increase in the low double-digit range.
Thomas Reinckens, Chairman and Chief Executive, said: "For the fourth quarter, we achieved 12% comparable sales growth and expect a significant improvement in earnings as compared to the fourth quarter last year, representing a solid finish to a profitable year of growth for Cache. Our performance however, was held back versus our original expectations due to the heightened promotional environment for cold weather assortments, such as sweaters and outwear, in the month of December. This led to increased markdowns and mitigated the strength of our dress and sportswear categories."
For fiscal 2011, the company now expects earnings per share in the range of $0.17 to $0.19, exclusive of any potential asset impairment costs, and comparable-store sales to improve 8%. Four analysts project earnings of $0.25 per share for 2011.
Looking forward to the first quarter of fiscal 2012, earnings per share are currently projected to lie betwen $0.00 and $0.03, and comparable-store sales to increase in the mid to high single-digit range. Cache expects to report results for the fourth quarter and fiscal 2011 the week of March 19, 2012.
by RTT Staff Writer
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