QUOTE AND NEWS
TechCrunch  Jul 21  Comment 
 Two years after acqhiring read-it-later startup Spool, Facebook today launched a basic Pocket competitor called Save. It’s a feature for iOS, Android, and web that lets you store links from News Feed and Facebook Pages for Places, Events,...
Forbes  Jul 9  Comment 
Geocaching is a popular trend amongst those who consider themselves modern-day explorers.  Geocachers basically use GPS devices to hide surprises and/or hunt for small treasures. A typical cache (the “treasure”) might be a small waterproof...
Cloud Computing  Jul 9  Comment 
UNICOM Systems, Inc., a Division of UNICOM Global, today announced that it has acquired the solidDB® In-memory relational database management system from International Business Machines Corp. (IBM). The acquisition includes both the solidDB...
Canada.com  Jul 7  Comment 
The files smuggled out of Russia in 1992 by senior KGB official Vasili Mitrokhin describe sabotage plots, booby-trapped weapons caches and armies of agents under cover in the West — the real-life inspiration for the fictional Soviet moles in...
Cloud Computing  Jun 17  Comment 
Instart Logic, the Cloud Application Delivery Service for performance-obsessed organizations, announced today InstantLoad cache optimization and SmartVision, a new computer vision-based image analysis technology. These industry-first technology...
New York Times  Jun 11  Comment 
Metaspriggina is two inches long and 505 million years old, and scientists recently uncovered an extraordinary cache of its fossils.
New York Times  Jun 4  Comment 
The Groningen field in the Netherlands has provided energy for decades, but a series of earthquakes have damaged property and rattled residents.
DailyFinance  May 28  Comment 
Cache, Inc. ("Cache") (NASDAQ:CACH), a specialty chain of women’s apparel stores, announced today that it priced an underwritten public offering of 8,000,000 shares of common stock at a price to the public of $1.75 per...
StreetInsider.com  May 28  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Cache%2C+Inc.+%28CACH%29+Pices+8M+Common+Offering+at+%241.75Share/9528806.html for the full story.




RELATED WIKI ARTICLES

Related Articles

 
TOP CONTRIBUTORS

Cache, Inc. (CACH) is a specialty retailer, which operates stores selling women's apparel and accessories under the names Cache and Cache Luxe. Each of these store concepts carries its own distinctive brand merchandise, which includes sportswear, dresses, and accessories (jewelry, belts, and handbags meant to complement the sportswear and dress categories). Cache targets women between the ages 25 and 45. Cache Luxe is the company's newest store concept that was rolled out to replace the Lillie Store concept. Cache Luxe stores will offer a larger selection of casual and evening apparel and accessories at higher price points. Meanwhile, the company recently decided to close its Lillie Rubin stores by the end of the third quarter. The company ended 2007 with 296 total stores, primarily situated in central locations in high traffic and upscale malls throughout the US. Cache also sells merchandise online through its website: www.cache.com.

The investment thesis for buying shares of Cache is the strength of the company's core Cache store concept, its direct sourcing efforts, and its healthy balance sheet.

Cache believes it can expand its total store count to 350 Cache stores, up from about 300 stores today. Part of the plan has been to increase its total square footage in the mid-single digits. Along with ramping up its store count, Cache has also been progressively refurbishing existing stores to enhance the customer-shopping experience. In addition, the company is not growing just for the sake of growth its strategy is to improve its profit margins with solid sales growth. Specifically, Cache's long-term growth strategy includes significantly increasing its operating profit margin to 15%, up from 7.5% in 2005, 6.3% (excluding Lillie Rubin exit costs) in 2006, and around 3.4% in 2007. To facilitate its profit margin expansion, the company's strategy has been to reduce the number of stock keeping units (SKUs) in its stores and the number of vendors from which it buys. Cache also has established a merchandising process that provides it with shorter product lead times. The shorter lead time enables the company to alter its merchandise mix to take advantage of popular offerings and reduce or eliminate unpopular items. The combination of a smaller number of product offerings on its shelves, fewer vendors, and shorter lead times enables the company to better manage its inventory. This should help minimize working capital requirements and boost profit margins. With that in mind, the company announced the acquisition of its largest supplier and believes it can have 40% of its merchandise directly-sourced by year-end 2007. This should help boost profit margins in 2008 and beyond. By seeking to grow its business profitably, Cache should be able to smartly manage its long-term store expansion, which should lead to several years of strong sales and earnings growth. In addition, the closing of its poorly performing Lillie Rubin stores should help boost profit margins. For the last two years, Lillie Rubin has been a consistent drag on the company's sales growth and profit margins. Additionally, the company maintains a pristine balance sheet with just $4.6 million in long-term debt with a debt-to-equity ratio of 4.2%. Cache's balance sheet and solid cash flows provide the company with the financial flexibility to internally finance its long-term growth plans, weather the current spending slowdown, or buyback shares. Note: the company recently announced a 3 million share buyback.

Lastly, the stock is down about 60% in the last twelve months, due to difficult environment for retailers and the company's soft results. But, we expect the company's performance to improve in the quarters ahead. We view this level as an attractive entry point for purchasing the shares.




References

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki