Le Chateau shares plummet after quarterly sales plunge

Shares of clothing retailer Le Chateau plummeted nearly 18 per cent Monday after the company reported a net loss in its second quarter amid a sharp drop in sales.

On the Toronto Stock Exchange, Le Chateau'sshares closed down 23 cents to $1.01 in heavy trading. Volume was 41,580 shares, up from the normal daily average of 5,334 shares.

The company's stock has declined steadily over the past 52 weeks from $5.25, having earlier hit a low of 97 cents.

Sales during the quarter were $68.3 million, down almost 10 per cent from $75.7 million in the prior year.

Same-store sales for outlets open at least a year decreased 8.6 per cent, despite a seven per cent increase in online sales.

Meanwhile, Le Chateau said that in the first five weeks of the third quarter ended Aug. 30, retail sales decreased 10.7 per cent while same-store sales fell 9.4 per cent.

Le Chateau operates 226 retail locations in Canada and one in the United States. It also has five stores under licence in the Middle East.