Cache Nov. sales sink 18 pct, co. pulls guidance

NEW YORK - Apparel retailer Cache Inc. withdrew its current guidance on Thursday after announcing its same-store sales fell 18 percent in November, more than analysts expected.

Analysts surveyed by Thomson Reuters, on average, expected same-store sales to fall 9.4 percent.

Shares of Cache fell on the news, dropping 12 cents, or 6.9 percent, to close at $1.62.

Same-store sales, or sales at stores open at least a year, are a key measure of retailer performance because they measure growth at existing stores rather than from newly opened ones.

The company said its drop far outpaced the 4 percent same-store sales drop it posted in the same period last year.

For the four-weeks ended Nov. 22, total sales fell 18 percent to $18.3 million.

The New York-based company said the results were disappointing and reflect weakening consumer spending.

Chief Executive Thomas Reinckens said Cache saw improvement during the Thanksgiving week, which was not included in the four-week period. He noted that the company is "particularly cautious as the majority of the holiday season is in front of us."

Because of that, the company decided to withdraw its guidance.

When announcing its third-quarter earnings in October, Cache had said it expected fourth-quarter earnings to fall in the low end of its range of 24 cents to 29 cents per share.

For the full year it predicted adjusted earnings would fall in the lower end of its range of 28 cents to 33 cents for the year. At the time, it also lowered its full-year revenue view to between $277 million and $279 million.

According to Thomson Reuters, analysts are predicting a fourth-quarter profit of 18 cents per share, and a full-year profit of 20 cents per share with sales of $272.9 million. They typically exclude one-time items from their estimates.

Year-to-date, same-store sales were down 2 percent and total sales fell 1 percent to $236.6 million.

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