Le Chateau Q2 profit slips to $1.3 million, sales fall 14.5 per cent

MONTREAL – Le Chateau Inc. (TSX:CTU.A) said Friday its second-quarter earnings were halved from a year ago as sales fell 14.5 per cent.

The clothing retailer said it earned $1.3 million or five cents per share for the quarter ended July 28 compared with a profit of $3.5 million or 14 cents per share.

The drop came as sales fell to $72.5 million, down from $84.8 million, and same-store sales fell 14.4 per cent compared with a year ago.

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For the first six months of the company’s financial year, Le Chateau lost $5.3 million or 21 cents per share compared with a profit of $615,000 or two cents per share the previous year.

Sales for the first half of the year fell 13 per cent to $130.3 million from $149.8 million in the same period a year earlier as same-store sales fell 13.8 per cent.

The company opened one new store and closed eight stores during the first six months of the year.

Le Chateau has 236 retail locations, almost entirely in Canada, as well as 10 stores under license in the Middle East.

Shares in the company, which reported its results after the close of markets, were up four cents at $2.20 on the Toronto Stock Exchange on Friday.