Published
Jan 3, 2019
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Le Château sales fall in third quarter, stores close

Published
Jan 3, 2019

Canadian retailer Le Château saw sales continue to fall in its third quarter following a difficult year involving over a dozen store closures. 

Le Château sales fall in Q3. - facebook.com/lechateaustyle

 
Sales for the quarter ended October 27, 2018, dipped 7.3 percent to $45.1 million, compared with $48.7 million for the third quarter ended October 28, 2017, with 27 fewer stores in operation. 
 
Comparable store sales, which include online sales, increased 1.3 percent for the third quarter as compared to last year, with comparable regular store sales increasing 1.2 percent and comparable outlet store sales increasing 2.4 percent. 

Net loss for the year amounted to $6.7 million or $(0.22) per share. 
 
In another blow to the retailer, total retail sales were down 10.3 percent for the first seven weeks of its fourth quarter, a blemish on the company's holiday period. Not even online sales saw a push. Comparable store sales, which include online sales, decreased 3.6 percent compared to the same period last year.
 
During the first nine months of 2018, the fashion retailer for men and women renovated two existing locations and closed 17 underperforming stores, as planned.
 
The company currently operates 143 stores and still plans to close 4 additional stores during the remainder of its fiscal year.

This will mostly complete its store optimization program, which it started three years ago when Le Château planned to recalibrate its retail network, by closing underperforming stores and focusing on its e-commerce business in order to improve margins.

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