Le Château Inc. reported unaudited consolidated earnings results for the second quarter and six months ended July 28, 2018. For the quarter, the company reported sales of CAD 53,313,000 compared to CAD 55,308,000 a year ago. Total comparable store sales were CAD 51,827,000 against CAD 49,376,000 a year ago. Loss before income taxes was CAD 178,000 against CAD 987,000 a year ago. Net loss and comprehensive loss was CAD 178,000 or CAD 0.01 basic and diluted per share against CAD 987,000 or CAD 0.03 basic and diluted per share a year ago. Adjusted EBITDA was CAD 4,383,000 against CAD 3,768,000 a year ago. Cash flows from operating activities were CAD 6,421,000 against CAD 9,217,000 a year ago. Additions to property and equipment and intangible assets amounted to CAD 1,322,000 against CAD 637,000 a year ago. Results from operating activities were CAD 2,101,000 against CAD 734,000 a year ago. The improvement of CAD 600,000 in adjusted EBITDA for the second quarter was attributable to the reduction of CAD 2.5 million in selling, general and administrative (“SG&A”) expenses, partially offset by the decrease of CAD 1.9 million in gross margin dollars.

For the six months period, the company reported sales of CAD 94,397,000 compared to CAD 99,721,000 a year ago. Total comparable store sales were CAD 91,653,000 against CAD 89,322,000 a year ago. Loss before income taxes was CAD 10,955,000 against CAD 13,840,000 a year ago. Net loss and comprehensive loss was CAD 10,955,000 or CAD 0.37 basic and diluted per share against CAD 13,840,000 or CAD 0.46 basic and diluted per share a year ago. Adjusted LBITDA was CAD 1,795,000 against CAD 4,545,000 a year ago. Cash flows used in operating activities were CAD 4,097,000 against CAD 2,890,000 a year ago. Additions to property and equipment and intangible assets amounted to CAD 1,997,000 against CAD 1,505,000 a year ago. Loss from operating activities was CAD 6,425,000 against CAD 10,679,000 a year ago.

The company reported sales results for the first eight weeks ended September 22, 2018, for the period the company reported total retail sales decreased 6.1%, with 29 fewer stores in operation. Comparable store sales increased 3.5% compared to the same period last year, with comparable regular store sales increasing 3.8% and comparable outlet store sales increasing 1.6%. Included in comparable store sales are online sales which increased 36.3%.