Le Château sales continue to fall in second quarter

By

Jennifer Braun

Published
Sep 12, 2016

Canadian fashion retailer Le Château announced on Friday a 5.3 percent decrease in sales for the second quarter which ended July 30, 2016, compared to the same period last year.
 
Sales amounted to $59.9 million as compared to $63.3 million for the first quarter ended August 1, 2015. Net loss for the second quarter amounted to $6.2 million or $0.21 per share.

Though comparable store sales decreased 0.3 percent, comparable regular store sales increased 2 percent thanks to the companies booming e-commerce business. Le Château saw online sales increase 43 percent in the second quarter alone. The company equally saw an increase in online sales of 53.9 percent in its first quarter.
 
“The retail landscape has evolved and consumer shopping habits have changed significantly with e-commerce […] Consequently, in light of these changes and situation, our strategy is to continue to review our retail network and close underperforming stores. To date, we have made significant progress on our plan and expect our rightsizing objectives to be largely reached in three years considering the expiry of leases,” the company says in a news statement.

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During the first six months of 2016, the Company renovated one existing location and, as planned, closed 11 underperforming stores.
 
The retailer now operates 200 stores, 20 stores fewer compared to the same period last year.
 
Le Château is a leading Canadian brand in specialty retailing, offering a broad array of contemporary fashion apparel, accessories and footwear for women and men.