Apr 30, 2017
2 minutes
Le Château reports net loss in 2016
Apr 30, 2017
Canadian fashion retailer Le Château reported on Friday a net loss of $37.2 million or $1.24 per share, for the year ended January 28, 2017.
Sales for the year were down 4.3 percent to $226.6 million. Comparable store sales however, increased 0.3 percent for the year, with comparable regular store sales increasing 1.9 percent and comparable outlet store sales decreasing 5.2 percent.
Over the past fiscal year, comparable store sales for regular stores have continued to increase. The company believes that this is a reflection of “the traction of our merchandise selection, marketing, rebranding efforts and a remaining store base of better performing stores.”
The Montreal-based retailer said online sales increased 43.6 percent for the year. The company is betting on its online business and opened a new e-commerce warehouse and distribution facility at the end of September to better serve customers.
Meanwhile, the retailer closed 25 underperforming stores during the year as it continues to review its retail strategy.
“The retail landscape has evolved and consumer shopping habits have changed significantly with e-commerce. In light of this evolution, the high concentration of stores in large urban markets - a successful model in the pre-digital world - is no longer required,” the company said in a news statement. “Consequently, our strategy is to continue to review our retail network and close underperforming stores.”
For the fourth quarter, sales were also down by 4 percent, from $65.2 million for the fourth quarter ended January 30, 2016, to $62.6 million. Comparable store sales increased 1.2 percent compared to the same period last year.
Net loss for the fourth quarter amounted to $8.8 million or $0.29 per share.
As of January 28, 2017, the Company operates 187 stores.
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