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):
APRIL 30, 2009
CACHE, INC.
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(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
FLORIDA 0 -10345 59 -1588181
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(STATE OR OTHER (COMMISSION FILE NUMBER) (IRS EMPLOYER
JURISDICTION OF IDENTIFICATION
INCORPORATION) NUMBER)
1440 BROADWAY, NEW YORK, NEW YORK 10018
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(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 April 30, 2009, the Cache, Inc. (the "Company") issued a press release
(the "Press Release") announcing its results for the thirteen week period ended
March 28, 2009, confirming it will maintain its previous guidance for the second
fiscal quarter of 2009 and continuing its planned store openings and closings
for the remainder of the fiscal year. 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 results for the thirteen week period ended March
28, 2009, guidance for the second quarter of 2009 and continuing plans for
store openings and closings.
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: April 30, 2009 CACHE, INC.
By: /s/ Margaret Feeney
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Margaret Feeney
Executive Vice President and
Chief Financial Officer
Exhibit 99.1
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[GRAPHIC OMITTED]
Company Contact: Maggie Feeney
Executive Vice President and
Chief Financial Officer
Cache Inc.
(212) 575-3206
FINAL FOR RELEASE
Investor Relations: Allison Malkin/Jane Thorn Leeson
ICR, Inc.
(203) 682-8225/(646) 277-1223
CACHE REPORTS FIRST QUARTER FISCAL 2009 RESULTS
FIRST QUARTER LOSS PER SHARE OF $0.12
CASH AND MARKETABLE SECURITIES TOTALS $30.5 MILLION AT QUARTER END
MAINTAINS SECOND QUARTER FISCAL 2009 DILUTED EPS GUIDANCE OF $0.04 TO $0.07
New York, New York - April 30, 2009 - Cache Inc., (NASDAQ: CACH), a
specialty chain of women's apparel stores, reported results for the thirteen
week period ("first quarter") ended March 28, 2009.
FOR THE 13-WEEK PERIOD ENDED MARCH 28, 2009:
o Net sales decreased 21.7% to $53.0 million from $67.7 million in the
first quarter of fiscal 2008. Comparable store sales decreased 20.7%,
as compared to an increase of 3.3% in the first quarter of fiscal
2008;
o Net loss totaled $1.6 million or ($0.12) per share, as compared to a
net loss of $2.1 million or ($0.15) per share in the first quarter of
fiscal 2008. First quarter fiscal 2008 results included $1.8 million,
or $0.14 per diluted share, in costs, net of taxes, for store closures
and the management change in January 2008; and
o Adjusted net loss for first quarter fiscal 2008 was $210,000, or
($0.02) per share, which excludes store closure and management change
costs.
Thomas Reinckens, Chairman and Chief Executive Officer, commented: "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. To
this point, cash and marketable securities totaled $30.5 million and inventories
were 20% below the prior year at quarter end. We also achieved $4.7 million in
savings during the quarter and now expect to deliver $18 million in total cost
reductions this year, up $3 million from our year-end goal. While the weak
consumer spending environment and the shift in the Easter holiday negatively
impacted our first quarter performance, there were several positive categories
in our business."
"As we begin the second quarter, we expect to continue to benefit from
our cost reduction plans and lower product costs through our initiatives in
sourcing," Mr. Reinckens continued. "At the same time, we will drive for market
share growth and believe our upcoming offerings that include expanded casual and
day time dress assortments, at competitive price points, along with higher
impact marketing have us poised to achieve this goal. We continue to expect our
efforts to enable us to generate earnings per share in the range of $0.04 to
$0.07 in the second quarter."
FIRST QUARTER HIGHLIGHTS
Gross profit for the first quarter of fiscal 2009 was $21.8 million, or
41.1% of net sales, compared to $28.4 million, or 42.0% of net sales, in the
first quarter of fiscal 2008. The 90 basis point decline in gross profit margin
was driven by the deleveraging of store occupancy costs resulting from lower
sales. This was partially offset by lower markdowns and higher initial mark up
due to improved sourcing, as compared to the prior-year.
In total, operating expenses were $24.3 million, or 45.9% of net sales,
as compared to $31.9 million, or 47.1% of net sales, in the first quarter of
fiscal 2008. Operating expenses for the 13-week fiscal 2008 period included $2.9
million in costs related to store closures and the management change in January
2008. The decrease in operating expenses was primarily due to a decrease in
store payroll and other store operating costs, lower advertising costs, lower
general and administrative costs and the effect of the above-mentioned one-time
charges incurred during the first quarter of fiscal 2008.
At March 28, 2009, cash and marketable securities totaled $30.5 million,
after utilizing $586,000 to fund the repurchase of 310,000 shares during the
quarter and compares to $30.7 million in cash and marketable securities at March
29, 2008. Total inventory at cost decreased 20% at quarter end from the
prior-year period. Working capital decreased by $4.3 million to $43.0 million
from $47.3 million at March 29, 2008, primarily due to the repurchase of a total
of 682,000 shares, at a cost of approximately $3.0 million during the 12-month
period ending March 28, 2009.
A table summarizing financial results follows:
THIRTEEN WEEKS ENDED
March 28, March 29,
2009 2008
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($ thousands, except for per share data)
Net sales $ 53,006 $ 67,708
Operating loss $ (2,529) $ (3,480)
Store closure and other one-time costs $ -- $ 2,924
Operating loss before one-time costs $ (2,529) $ (556)
Net loss $ (1,595) $ (2,053)
Net loss before one-time costs $ (1,595) $ (210)
Diluted loss per share $ (0.12) $ (0.15)
Net loss per share excluding $ (0.12) $ (0.02)
one-time costs, as adjusted
Basic and diluted weighted average 12,954,000 13,566,000
shares outstanding
Number of stores open at end of period 294 294
SECOND QUARTER FISCAL 2009 GUIDANCE
The Company is maintaining its guidance for the second quarter of fiscal
2009. The Company continues to expect net sales for the second quarter of fiscal
2009 in the range of $57.0 million to $59.0 million, which compares to actual
second quarter fiscal 2008 net sales of $74.0 million. This guidance assumes a
similar comparable store sales trend as reported in the first quarter and
follows a comparable store sales increase of 3% in the second quarter of fiscal
2008.
Earnings per diluted share for the second quarter of fiscal 2009 continues
to be estimated in the range of $0.04 to $0.07, which compares to actual second
quarter fiscal 2008 earnings per diluted share of $0.16.
STORE OPENING PLANS
During the first quarter, the Company opened two new stores, closed four
locations and operated 294 stores, at quarter end. The Company closed two stores
after quarter end. For fiscal 2009, the Company plans to close approximately
five additional stores, ending the year with approximately 287 locations and
approximately 590,000 square feet in operation. The Company does not plan to
open any additional new stores in fiscal 2009.
CONFERENCE CALL INFORMATION
The Company announced that it will conduct a conference call to discuss its
first quarter fiscal 2009 results today, April 30, 2009 at 9:00 a.m. Eastern
Time. Investors and analysts interested in participating in the call are invited
to dial (877) 407-9039 approximately ten minutes prior to the start of the call.
The conference call will also be web-cast live at WWW.CACHE.COM. A replay of
this call will be available until May 7, 2009 and can be accessed by dialing
(877) 660-6853 and entering account number 3055 and conference code 320296.
ABOUT CACHE, INC.
Cache is a nationwide, mall-based specialty retailer of sophisticated
sportswear and social occasion dresses targeting style-conscious women who have
a youthful attitude and are self-confident. We currently operate 292 stores,
primarily situated in central locations in high traffic, upscale malls in 43
states, the Virgin Islands and Puerto Rico.
CACHE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 28, December 27, March 29,
ASSETS 2009 2008 2008
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Current assets:
Cash and equivalents $ 1,146,000 $ 4,835,000 $ 3,250,000
Marketable securities 29,379,000 25,153,000 27,414,000
Receivables, net 3,784,000 3,898,000 6,204,000
Income tax receivable 3,709,000 5,883,000 0
Inventories, net 26,036,000 22,321,000 32,524,000
Prepaid expenses and other current assets 3,116,000 1,795,000 4,924,000
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Total current assets 67,170,000 63,885,000 74,316,000
Equipment and leasehold improvements, net 41,180,000 43,320,000 46,561,000
Goodwill 9,092,000 9,092,000 10,089,000
Intangible assets, net 1,275,000 1,304,000 1,393,000
Other assets 2,113,000 1,924,000 383,000
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Total assets $ 120,830,000 $119,525,000 $ 132,742,000
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 10,659,000 $ 6,375,000 $ 11,751,000
Note payable 1,271,000 1,259,000 1,474,000
Accrued compensation 2,330,000 1,713,000 2,926,000
Accrued liabilities 9,897,000 11,077,000 10,875,000
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Total current liabilities 24,157,000 20,424,000 27,026,000
Note payable 2,832,000 3,143,000 4,052,000
Other liabilities 16,801,000 16,795,000 15,491,000
Deferred income taxes, net 0 0 50,000
Commitments and contingencies
STOCKHOLDERS' EQUITY
Common stock 164,000 164,000 164,000
Additional paid-in capital 47,213,000 47,155,000 46,678,000
Retained earnings 69,458,000 71,053,000 76,122,000
Treasury stock (39,795,000) (39,209,000) (36,841,000)
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Total stockholders' equity 77,040,000 79,163,000 86,123,000
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Total liabilities and stockholders' equity $ 120,830,000 $ 119,525,000 $ 132,742,000
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CACHE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THIRTEEN WEEKS ENDED
March 28, March 29,
2009 2008
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Net sales $ 53,006,000 $ 67,708,000
Cost of sales, including occupancy and buying costs 31,211,000 39,293,000
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Gross profit 21,795,000 28,415,000
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Costs and expenses
Store operating expenses 19,588,000 23,918,000
General and administrative expenses 4,736,000 5,669,000
Store exit costs 0 2,308,000
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Total expenses 24,324,000 31,895,000
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Operating loss (2,529,000) (3,480,000)
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Other income:
Interest expense (51,000) (68,000)
Interest income 67,000 290,000
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Loss before income taxes (2,513,000) (3,258,000)
Income tax benefit (918,000) (1,205,000)
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Net loss $ (1,595,000) $ (2,053,000)
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Basic loss per share ($0.12) ($0.15)
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Diluted loss per share ($0.12) ($0.15)
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Basic weighted average shares outstanding 12,954,000 13,566,000
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Diluted weighted average shares outstanding 12,954,000 13,566,000
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