QUOTE AND NEWS
GenEng News  Aug 27  Comment 
In the postgenomic era, the numerous and diverse noncoding RNA species once dismissed as “junk RNA” are increasingly seen as treasure. Noncoding RNAs, we now know, have diverse functions in health and disease. Some in the field believe...
New York Times  Aug 27  Comment 
A cache of clay tablets provides an unusual look at an ancient but strikingly familiar-looking economy — and confirms a modern truth about trade.
GenEng News  Aug 26  Comment 
In the postgenomic era, the numerous and diverse noncoding RNA species once dismissed as “junk RNA” are increasingly seen as treasure. Noncoding RNAs, we now know, have diverse functions in health and disease. Some in the field believe...
Yahoo  Aug 18  Comment 
Hackers have followed through on a threat to release online a huge cache of data, including customer information, that was stolen a month ago from cheating spouses website AshleyMadison.com, several tech websites reported on Tuesday. A group...
The Economic Times  Aug 3  Comment 
Their long association and huge cache of shares make these guys very influential on Dalal Street as promoters dread their unwavering gaze.
New York Times  Aug 1  Comment 
By court order, the State Department released the second cache of emails that Mrs. Clinton sent and received during her tenure in President Obama’s cabinet.
Clusterstock  Jul 11  Comment 
A hefty cache of hacking tools were leaked to the masses this week when the controversial surveillance company Hacking Team was breached and 500 GB of its files were released for download on Twitter. "The hacking team tools are of a much higher...
Forbes  Jul 5  Comment 
As record and single sales continue to dwindle, artists of all sizes and at every point in their careers are forced to look elsewhere for revenue streams. The relationship between brands and bands is becoming more and more important to both...
TechCrunch  Jun 24  Comment 
 Online culture has been obsessed with cats since the Japanese text board 2channel first posted Giko Neko in 1998. Cat cafes have capitalized on this obsession and brought us a cache of cats in real-life locations all over the world. What started...




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