Retailer Le Chateau reports first-quarter loss, sales down from year ago

MONTREAL – Clothing retailer Le Chateau Inc. (TSX:CTU.A) said Friday it lost $6.5 million in its latest quarter as sales fell more than 10 per cent.

The company said the loss amounted to 26 cents per share for the quarter ended April 28 compared with loss of $2.9 million or 12 cents per share a year ago.

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Sales for the quarter fell to $57.8 million, down from $65 million, while same-store sales fell 13.1 per cent from a year ago.

“Earnings and margins for the first quarter were negatively impacted by increased promotional activity,” the company said in a statement.

During the quarter, the company opened one new store and closed four stores.

Le Chateau has 236 stores including 235 in Canada, mostly in shopping malls, as well as street-front locations.

The company also has 10 stores under license in the Middle East.