Fashion retailer Le Chateau reports bigger first-quarter loss amid lower sales

MONTREAL – Le Chateau Inc. (TSX:CTU.A) says its first-quarter net loss grew by 58 per cent to $13 million, or 48 cents per share, as the fashion retailer dealt with lower overall sales and on a comparable-store basis.

A year earlier, Le Chateau had a net loss of $8.2 million or 30 cents per share in the first quarter of fiscal 2013.

Its sales fell to $53.3 million in the quarter ended April 26 from $56.9 million in the first quarter of fiscal 2013, while comparable store sales decreased 5.4 per cent, including online sales.

Le Chateau said its first-quarter sales were affected by the weather, which reduced customer traffic at its stores.

It added that sales in the first five weeks of the second quarter were also down from last year, dropping 8.3 per cent, while comparable-store sales were down 7.2 per cent.

The Montreal-based company has 227 locations in Canada, primarily in malls, that sell fashion apparel, accessories and footwear for women and men.