MONTREAL – Montreal-based clothing retailer Le Chateau Inc. (TSX:CTU.A) says its third-quarter net loss narrowed to $3.6 million, largely due to cost-cutting initiatives.
The chain said that loss amounted to 14 cents per share, compared to a net loss of $4.1 million or 17 cents per share in the same quarter of 2011.
Cost-cutting strategies helped reduce selling, general and administrative expenses by $6.4 million, which helped to offset a $6 million decline in gross margins.
Third-quarter sales fell 9.5 per cent to $63.7 million from $70.4 million in the year-earlier.
Comparable same-store sales fell 9.3 per cent in the third quarter as sales continue to be hit by the company’s emphasis on inventory reduction, resulting in lower average selling prices.
It also said its traffic volumes were lower due to consumer caution on discretionary spending.
Meanwhile, the chain’s online sales grew by 92 per cent in the third quarter, though they remain a small percentage of its overall sales.
For the first five weeks of the current quarter, retail sales fell 5.8 per cent and comparable stores were down 4.8 per cent compared to the same quarter last year.
The company also announced that Andrew Cohen and Michael Pesner have been appointed to the board of directors, replacing Neil Kravitz and Max Mendelsohn who have left the board.
Le Chateau has 235 retail locations, of which 234 are located in Canada.
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