Le Château announces more store closures amid sales dip

Canadian retailer Le Château reported another difficult year resulting in plans to close up to 20 more stores, the company said. 

Le Château announces more store closures amid sales dip - facebook.com/lechateaustyle
 
Sales for the year ended January 27, 2018 were $204.4 million, down 9.8 percent compared to the prior year, with 27 fewer stores in operation. 
 
Comparable store sales decreased 2.6 percent during the year, while comparable regular store sales fell 1.4 percent and comparable outlet store sales decreased 7.7 percent. 
 
Included in comparable store sales are online sales – the retailer’s only bright spot – which jumped 20.3 percent for the year. 
 
Net loss for the year amounted to $24.0 million or $(0.80) per share. 
 
Meanwhile, in its fourth quarter the company saw sales also plunge 10.6 percent to $56 million. Comparable store sales decreased 1.7 percent for the fourth quarter as compared to last year, with comparable regular store sales decreasing 0.5 percent and comparable outlet store sales decreasing 7.2 percent. 
 
Net loss for the fourth quarter amounted to $3 million. 
 
“In light of the impact of e-commerce on consumer behavior, the execution of our business plan required a significant reduction in the number of stores and of retail square footage,” the company explained in a news statement. 
 
Le Château is planning to close approximately 20 stores and expects its total square footage to decline from 896,000 square feet to approximately 800,000 square feet in 2018 alone. 
 
In the last fiscal year, the Montreal-based clothing company closed 27 stores as part of its retail right-sizing strategy. 
 
The Canadian specialty retailer currently operates 151 stores.

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