- Second quarter off to solid start
- New Chairman appointed
MONTREAL, June 19 /CNW Telbec/ - At today's annual general meeting,
Le Château Inc.(TSX: CTU.A) reported that for the first seven weeks of the
second quarter of fiscal 2009, total retail sales have increased 6.4% and
comparable store sales are up 2.0% compared to the same period last year. On a
year-to-date basis, total retail sales increased 2.1% and same store sales
decreased 1.8% compared to the same period last year.
To date, the Company has opened nine new stores and expanded six existing
locations, resulting in the addition of 57,000 square feet or 5.9% to the Le
Château network, bringing the total floor space at end of period to
1,022,000 square feet.
First quarter of fiscal 2009
Net earnings for the first quarter ended April 26, 2008 increased 33.3%
to $5.6 million from $4.2 million. Earnings per share (basic) for the first
quarter increased to $0.23 per share from $0.17 per share the previous year.
Sales for the first quarter increased 0.3% to $70.6 million from $70.4 million
for the same period last year. Comparable store sales decreased by 4.6% versus
the same period a year ago.
On June 5, 2008, the Board of Directors increased the regular quarterly
dividend by 20% from $0.125 to $0.15 per Class A subordinate voting share and
Class B voting share and declared a special dividend of $0.25 per share. Both
dividends (constituting eligible dividends for income tax purposes) are
payable on August 19, 2008 to the shareholders of record at the close of
business on July 25, 2008.
Appointment of Chairman
The Board of Directors is pleased to announce the appointment of Ms. Jane
Silverstone Segal as Chairman of the Company. Ms. Silverstone Segal, currently
Chief Executive Officer, replaces Mr. Richard Cherney. Ms. Silverstone Segal
became CEO of Le Château in September 2006. Mr. Cherney was appointed
non-executive Chairman of the Company in February 2007 after Company Founder,
Mr. Herschel Segal, stepped down. Both Mr. Cherney and Mr. Segal remain as
Directors of the Company.
Le Château is a leading Canadian brand in specialty retailing, offering a
broad array of contemporary fashion apparel, accessories and footwear for
style-conscious women and men. The Le Château brand is synonymous with ageless
fashion at accessible prices and is sold exclusively through the Company's
218 retail locations, of which 214 are located in Canada and 4 in the New York
City area. The Company's outlets are primarily found in major urban shopping
malls, complemented with high pedestrian-traffic, street-front locations. In
addition, the Company has 8 stores under license in the Middle East.
The Company's 48-year tradition of vertical integration, a design and
manufacturing approach to retailing, makes it unique among Canadian fashion
This news release may contain forward-looking statements relating to the
Company and/or the environment in which it operates that are based on the
Company's expectations, estimates and forecasts. These statements are not
guarantees of future performance and involve risks and uncertainties that are
difficult to predict and/or are beyond the Company's control. A number of
factors may cause actual outcomes and results to differ materially from those
expressed. These factors include those set forth in other public filings of
the Company. Therefore, readers should not place undue reliance on these
forward-looking statements. In addition, these forward-looking statements
speak only as of the date made and the Company disavows any intention or
obligation to update or revise any such statements as a result of any event,
circumstance or otherwise.
Factors which could cause actual results or events to differ materially
from current expectations include, among other things: the ability of the
Company to successfully implement its business initiatives and whether such
business initiatives will yield the expected benefits; competitive conditions
in the businesses in which the Company participates; changes in consumer
spending; general economic conditions and normal business uncertainty;
customer preferences towards product offerings; seasonal weather patterns;
fluctuations in foreign currency exchange rates; changes in the Company's
relationship with its suppliers; interest rate fluctuations and other changes
in borrowing costs; and changes in laws, rules and regulations applicable to
For further information:
For further information: Emilia Di Raddo, CA, President, (514) 738-7000;
Johnny Del Ciancio, CA, Vice-President, Finance, (514) 738-7000; Maison
Brison: Rick Leckner, (514) 731-0000; Source: Le Château Inc.