UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED):
JANUARY 4, 2007
CACHE, INC.
--------------------------------------------
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
FLORIDA 0 -10345 59 -1588181
----------- ---------------------- -------------
(STATE OR OTHER (COMMISSION FILE NUMBER) (IRS EMPLOYER
JURISDICTION OF IDENTIFICATION
INCORPORATION) NUMBER)
1440 BROADWAY, NEW YORK, NEW YORK 10018
---------------------------------------
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (212) 575-3200
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On January 4, 2007, the Company issued a press release (the "Press
Release") announcing its December 2006 sales results, revising its guidance for
fourth quarter and fiscal 2006, and providing guidance for the first quarter of
fiscal 2007. The Press Release is attached as Exhibit 99.1 to this Current
Report on Form 8-K.
ITEM 9.01 EXHIBITS
99.1 Press release regarding December 2006 sales, revising fourth quarter
and fiscal 2006 guidance, and providing first quarter fiscal 2007
guidance.
-2-
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES AND EXCHANGE ACT OF
1934, THE REGISTRANT HAS DULY CAUSED THIS REPORT TO BE SIGNED ON ITS BEHALF BY
THE UNDERSIGNED HEREUNTO DULY AUTHORIZED.
DATED: JANUARY 5, 2007 CACHE, INC.
By: /s/ Brian Woolf
---------------------------------
Brian Woolf
Chairman and Chief Executive Officer
-3-
Exhibit 99.1
JANUARY 4, 2007
Final
CACHE, INC.
NASDAQ COMMON STOCK SYMBOL CACH
CACHE REPORTS 4% INCREASE IN DECEMBER 2006 COMPARABLE STORE SALES
Revises Fourth Quarter and Fiscal 2006 Estimates
Introduces First Quarter Fiscal 2007 Diluted EPS in the Range of $0.17 to $0.19
New York, New York - January 4, 2007 - Cache Inc., (NASDAQ: CACH), a specialty
chain of women's apparel stores with 296 stores open, reported December 2006
sales figures. As previously announced, the Company substantially completed the
exit of its Lillie Rubin business. Therefore, the Company's comparable store
sales results only include its 277 Cache stores. The Company also revised fourth
quarter and fiscal 2006 guidance while introducing first quarter fiscal 2007
guidance. The Company expects to report full results for the fourth quarter and
fiscal 2006 year during the week of February 5, 2007.
Comparable Store Sales: (sales for stores open at least one year or more)
o Increased 4% during the five week December 2006 period, as compared to
the same period last year;
o Increased 6% during the 13 week period ended December 30, 2006, as
compared to the same period last year;
and
o Increased 6% during the 52 week period ended December 30, 2006, as
compared to the same period last year.
Total Sales:
o Increased $1.4 million or 4% to $39.1 million for the five week period
ended December 30, 2006, as compared to $37.7 million for the five
week period ended December 31, 2005;
o Increased $4 million or 5% to $83 million for the 13 week period ended
December 30, 2006, as compared to $79.3 million for the 13 week period
ended December 31, 2005; and
o Increased $12 million or 5% to $279 million for the 52 week fiscal
year ended December 30, 2006, as compared to $266.3 million for the 52
week fiscal year last year.
Mr. Brian Woolf, Cache's Chairman commented: "We are extremely
disappointed to reduce our expectations for the fourth quarter and fiscal 2006
year. While we began the month strongly, sales during the latter part of
December were well below our expectations. As a result, we were unable to
leverage the costs associated with our intensified marketing effort, with these
costs increasing by over $3 million from the fourth quarter last year. Results
were also impacted by our strategic decision to take early markdowns on certain
fur trim outerwear and jackets. Despite this, we remain excited by the
opportunities that lie ahead in both the near and long term."
"Sales in January to date have rebounded nicely, as we benefited from
the shift in the New Year's Eve holiday and the positive momentum in our dress
business." Mr. Woolf continued. "We are confident that our initiatives in
merchandising and marketing, along with our store expansion program, position us
to report strong sales and profit growth in the first quarter. As such, we
introduced first quarter fiscal 2007 earnings guidance in the range of $0.17 to
$0.19 per diluted share."
STORE EXPANSION
During December, the Company closed one Lillie Rubin location. During
fiscal 2006, the Company opened 17 new Cache stores, 16 Cache Luxe stores and 3
Cache Luxe locations adjacent to Cache and has closed 7 Cache stores and 37
Lillie Rubin stores. In total, the Company ended the 2006 fiscal year with 296
stores, including 277 Cache and 16 Cache Luxe locations.
-4-
GUIDANCE
FOURTH QUARTER
The Company currently expects fourth quarter GAAP diluted earnings per
share in the range of $0.28 to $0.30, which includes $0.01 per diluted share of
stock option expense and $0.01 to $0.02 per diluted share in losses related to
Lillie Rubin. This compares to the Company's previous guidance range for fourth
quarter GAAP diluted earnings per share in the range of $0.47 to $0.49 and
versus actual fourth quarter fiscal 2005 diluted earnings per share of $0.47.
FISCAL 2006
The Company currently estimates fiscal 2006 net sales of approximately
$279 million. This compares to the Company's previous guidance range for net
sales of $281 million to $284 million and versus actual fiscal 2005 net sales of
$266.3 million. Fiscal 2006 diluted earnings per share on a GAAP basis are
currently estimated in the range of $0.53 to $0.55, which includes increased
marketing expenditures, stock option expenses of approximately $0.05 per diluted
share, Lillie Rubin exit costs of $0.21 per share and losses related to Lillie
Rubin of $0.17 to $0.18 per share. This compares to the Company's previous
guidance range for GAAP fiscal 2006 diluted earnings per share of $0.72 to $0.74
and versus actual fiscal 2005 diluted earnings per share of $0.83. Adjusted for
Lillie Rubin exit costs and losses, fiscal 2006 diluted earnings per share are
estimated in the range of $0.91 to $0.94. This compares to adjusted diluted
earnings per share of $0.99 for fiscal 2005.
FIRST QUARTER FISCAL 2007
The Company is introducing guidance for the first quarter of fiscal
2007. The Company currently expects net sales for the first quarter of Fiscal
2007 to be in the range of $67 million to $69 million, as compared to actual net
sales of $63.8 million in the first quarter of fiscal 2006. Net sales excluding
Lillie Rubin were $58.9 million in the first quarter of fiscal 2006. The Company
currently expects comparable store sales for the first quarter of fiscal 2007 to
increase in the mid-single digit range. First quarter fiscal 2007 diluted
earnings per share are currently estimated in the range of $0.17 to $0.19, which
compares to actual GAAP diluted earnings per share of $0.11 in the first quarter
of fiscal 2006. Adjusted diluted earnings per share for the first quarter of
fiscal 2006 were $0.17 and excluded losses related to Lillie Rubin.
Certain matters discussed within this press release may constitute
forward-looking statements within the meaning of the federal securities laws.
Although Cache, Inc. believes the statements are based on reasonable
assumptions, there can be no assurance that these expectations will be attained.
Actual results and timing of certain events could differ materially from those
projected in or contemplated by the forward-looking statements due to a number
of factors, including, without limitation, ability to successfully open new
stores, introduction of the Cache Luxe concept, dependence on management,
dependence on vendors and distributors, reliance on foreign manufacturers,
material weakness in our internal controls, industry trends, merchandise and
fashion trends, competition, seasonality and changes in general economic
conditions and consumer spending patterns, as well as other risks outlined from
time to time in the filings of Cache, Inc. with the Securities and Exchange
Commission.
For further information contact Thomas E. Reinckens, President, Chief
Operating Officer, Cache, Inc., 1440 Broadway, New York, New York 10018, (212)
575-3246.
-5-