Le Chateau posts $3.9 million Q4 loss, blames weather and increased promos

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MONTREAL – Le Chateau Inc. (TSX:CTU.A) says it recorded a loss of $3.9 million in the fourth quarter, as it felt the impact of a cold winter that kept shoppers away.

The national clothing and accessories retailer said the loss amounted to 15 cents per diluted share for the three-month period ended Jan. 25.

This compared with a profit of $158,000 or a penny a share in the same period a year earlier.

Sales for the quarter were $76.9 million, down five per cent from $80.8 million, year over year. Comparable store sales fell 4.3 per cent.

Le Chateau says sales were also affected by an increase in promotional activity during the quarter, as it slashed prices on merchandise.

The retailer has 228 locations across Canada, and six stores under license in the Middle East and Asia.

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