Le Chateau Reports First Quarter Results
(firmenpresse) - MONTREAL, QUEBEC -- (Marketwired) -- 06/16/15 -- Le Chateau Inc. (TSX: CTU.A), a leading Canadian brand in specialty retailing, offering a broad array of contemporary fashion apparel, accessories and footwear for style-conscious women and men, today reported its results for the first quarter ended May 2, 2015. The 2015 year refers to the 13-week period ended May 2, 2015 while the 2014 year refers to the 13-week period ended April 26, 2014.
Sales for the first quarter ended May 2, 2015 amounted to $50.8 million, a decrease of 4.8% from $53.3 million for the first quarter ended April 26, 2014. Sales were negatively impacted in the first quarter of 2015 by soft store traffic and a competitive retail environment. Comparable store sales decreased 6.2% for the first quarter versus the same period a year ago. Included in comparable store sales are online sales which increased 24.7% for the first quarter.
Earnings (loss) before interest, income taxes, depreciation, amortization, write-off and/or impairment of property and equipment ("Adjusted EBITDA") (see non-GAAP measures below) for the first quarter amounted to $(7.1) million, compared to $(9.3) million last year. The improvement of $2.2 million in adjusted EBITDA for the first quarter of 2015 was primarily attributable to the increase of $263,000 in gross margin dollars and the decrease of $1.9 million in selling, general and administrative expenses. The increase of $263,000 in gross margin dollars was the result of the increase in gross margin percentage to 64.3% from 60.7% in 2014, offset by the 4.8% decline in sales for the first quarter of 2015. The gross margin improvement in the first quarter of 2015 resulted from reduced promotional activity.
Net loss for the first quarter amounted to $12.4 million or $(0.41) per share compared to a net loss of $13.0 million or $(0.48) per share the previous year. In addition, tax benefits amounting to $3.4 million attributed to losses generated during the first quarter of 2015 have not been recognized.
During the first quarter of 2015, the Company renovated two existing locations. Total square footage for the Le Chateau network as at May 2, 2015 amounted to 1,216,000 square feet, compared to 1,245,000 square feet as at April 26, 2014.
Although still negative, comparable stores sales performance during the first quarter marked an improvement over most recent quarters. Our stores in top-tier malls continue to do well and outperform stores in our other locations. The gross margin for the quarter increased significantly reflecting greater traction of our brand message from new early-adopting customers, particularly in new concept stores and online. We continue to execute our business plan and remain optimistic about the opportunity to grow our business and improve our margins.
Second Quarter of 2015
For the first six weeks ended June 13, 2015, total retail sales decreased 5.6% and comparable store sales decreased 4.8% compared to the same period last year. Included in comparable store sales are online sales which increased 36.5%.
For the year-to-date, the Company introduced two new concept stores: Scarborough Town Centre in Ontario on April 1, 2015 and Fairview Pointe Claire in Quebec on May 21, 2015. The Company plans to launch another three new concept stores over the next few months which include: Yorkdale Shopping Centre, Ontario in July 2015, St. Laurent Shopping Centre in Ottawa, Ontario in August 2015 and Mayfair Shopping Centre, British Columbia in August 2015. With the above-mentioned stores, a total of 20 stores will have been converted to new concept stores since the fall of 2011.
Profile
Le Chateau is a leading Canadian brand in specialty retailing, offering a broad array of contemporary fashion apparel, accessories and footwear for style-conscious women and men. The Le Chateau brand is sold exclusively through the Company''s 220 retail locations, of which 119 are located in Canada. The Company''s retail locations are primarily found in major urban shopping malls, as well as street-front locations with high pedestrian traffic. In addition, the Company has 4 stores under license in the Middle East. Le Chateau''s web-based marketing is further broadening the Company''s customer base among internet shoppers in both Canada and the United States. With its 55-year tradition of vertical integration, emphasizing a design and manufacturing approach to retailing, Le Chateau is unique among Canadian fashion merchants.
Non-GAAP Measures
In addition to discussing earnings measures in accordance with IFRS, this press release provides adjusted EBITDA as a supplementary earnings measure, which is defined as earnings (loss) before interest, income taxes, depreciation, amortization, write-off and/or impairment of property and equipment. Adjusted EBITDA is provided to assist readers in determining the ability of the Company to generate cash from operations and to cover financial charges. It is also widely used for valuation purposes for public companies in our industry.
The following table reconciles adjusted EBITDA to loss before income tax recovery for the first quarters ended May 2, 2015 and April 26, 2014:
The Company also discloses comparable store sales which are defined as sales generated by stores that have been open for at least one year.
The above measures do not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies.
Forward-Looking Statements
This news release may contain forward-looking statements relating to the Company and/or the environment in which it operates that are based on the Company''s expectations, estimates and forecasts. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict and/or are beyond the Company''s control. A number of factors may cause actual outcomes and results to differ materially from those expressed. These factors also include those set forth in other public filings of the Company. Therefore, readers should not place undue reliance on these forward-looking statements. In addition, these forward-looking statements speak only as of the date made and the Company disavows any intention or obligation to update or revise any such statements as a result of any event, circumstance or otherwise except to the extent required under applicable securities law.
Factors which could cause actual results or events to differ materially from current expectations include, among other things: the ability of the Company to successfully implement its business initiatives and whether such business initiatives will yield the expected benefits; competitive conditions in the businesses in which the Company participates; changes in consumer spending; general economic conditions and normal business uncertainty; seasonality and weather patterns; changes in the Company''s relationship with its suppliers; lease renewals; information technology security and loss of customer data; fluctuations in foreign currency exchange rates; interest rate fluctuations; liquidity risk and changes in laws, rules and regulations applicable to the Company. The foregoing list of risk factors is not exhaustive and other factors could also adversely affect our results.
The Company''s unaudited interim condensed financial statements and Management''s Discussion and Analysis for the first quarter ended May 2, 2015 are available online at .
Contacts:
Emilia Di Raddo, CPA, CA,
President
(514) 738-7000
Johnny Del Ciancio, CPA, CA,
Vice-President, Finance,
(514) 738-7000
MaisonBrison
Pierre Boucher
(514) 731-0000
Source:
Le Chateau Inc.
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Datum: 16.06.2015 - 15:46 Uhr
Sprache: Deutsch
News-ID 1366464
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