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By
Reuters
Published
Jan 11, 2010
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Cache cuts fourth quarter profit outlook, shares sink

By
Reuters
Published
Jan 11, 2010


Photo: www.cache.com

Jan 11 (Reuters) - Women's apparel retailer Cache Inc (CACH.O) slashed its fourth-quarter earnings view hurt by markdowns from increased promotional activity to compete in a soft retail environment, sending its shares down 13 percent in after-market trade.

The company projected fourth-quarter earnings of 1 cent to 3 cents a share, excluding a non-cash impairment charge, primarily related to goodwill, down from its prior view of 12 cents to 15 cents a share.

However, Cache raised its net sales outlook to a range of $64 million to $65 million from its prior view of $62 million to $64 million, reflecting improved sales trends.

Comparable stores sales for the fourth quarter are expected to decline 7 percent.

Shares of New York City-based retailer slid 13 percent to $4.11 in extended trade. They closed at $4.74 Monday 11 January on Nasdaq. (Reporting by Viraj Nair in Bangalore; Editing by Maju Samuel)

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