Le Château reported that sales for the second quarter ended July 30, 2016 amounted to $59.9 million.
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This is compared with $63.3 million for the second quarter ended August 1, 2015, a decrease of 5.3%, with 20 fewer stores in operation.
Comparable store sales decreased 0.3% for the second quarter as compared to last year, with comparable regular store sales increasing 2.0% and comparable outlet store sales decreasing 8.5% (see non-GAAP measures below).
Included in comparable store sales are online sales which increased 43.0% for the second quarter.
The continued success with our online sales is consistent with the shift in consumer shopping habits over the last few years and continues to reinforce our strategy of rightsizing our retail network of stores.
Earnings (loss) before interest, income taxes, depreciation, amortization, write-off and/or impairment of property and equipment (Adjusted EBITDA) for the second quarter of 2016 amounted to $(1.1) million, compared to $2.2 million for the same period last year.
The decrease of $3.3 million in adjusted EBITDA for the second quarter was primarily attributable to the decrease of $4.1 million in gross margin dollars, offset by the reduction in selling, general and administrative expenses of $800,000.
The decrease of $4.1 million in gross margin dollars was the result of the decline in gross margin percentage to 63.5% from 66.6% in 2015 due to increased promotional activity primarily in outlet stores and in stores scheduled to be closed, combined with the 5.3% overall sales decline for the second quarter.
As for the regular stores, they reported a slight increase in gross margin dollars when compared with the same period last year, despite the pressure of the weaker Canadian dollar on merchandise purchased.
Net loss for the second quarter ended July 30, 2016 amounted to $6.2 million or $(0.21) per share compared to a net loss of $4.0 million or $(0.13) per share for the same period last year. ■