Retailer Le Chateau reports $5 million loss in Q3, despite growing sales

The Canadian Press 0

MONTREAL – Le Chateau Inc. (TSX:CTU.A) reported a loss in the third quarter, despite an increase in comparable store sales and with its e-commerce business.

The national clothing and accessories retailer said it had a net loss of $5 million, or 18 cents per diluted share, for the three month period that ended Oct. 26.

This compared with a loss of $3.6 million, or 14 cents per diluted share, a year ago.

Sales for the quarter were $65.4 million, up from $63.7 million during the same quarter last year.

Comparable store sales grew by 3.1 per cent.

Le Chateau has 229 retail locations across Canada.

The company said the loss was due to a drop in gross margins on inventory and an increase in marketing expenses.

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