Women’s wear retailer Cache, Inc.,  has moderated its first-half outlook after getting off to a “slow start” in its second quarter and posting a first-quarter net loss.

For the three months to 31 March, the company today (11 May) posted a net loss of US$1.2m or $0.09 per share, compared to a $772,000 loss or $0.06 per share in the first quarter of last year. On average, three analysts polled by Thomson Reuters expected the company to report loss of $0.09 per share. Analysts’ estimates typically exclude special items.

Operating losses also widened to $2m, compared to a $1.3m loss last year, on the back of higher marketing and e-commerce costs.

But net sales jumped 7.5% to $56m, from $52.1 million in the comparable period a year ago. Analysts estimated revenues of $54.64 million. Meanwhile comparable store sales increased 9.4%,  which compares to an increase of 7.7% in the year-ago quarter.

Gross profit reached $22.2m, or 39.6% of net sales, from $21.9m, or 42.1% of net sales in last year’s quarter. The 243 basis point decrease was driven by an increase in markdowns as a percentage of sales, but partially offset by a jump in initial mark-ups.

Thomas Reinckens, Chairman and Chief Executive Officer, commented, “Our positive momentum from 2011 continued into the first quarter as reflected by our 9.4% increase in first quarter comparable store sales. However, increased expenses related to our brand building and ecommerce growth initiatives contributed to the increase in our operating loss as compared to the prior year.”

“We have seen a slow start to the second quarter with April comparable store sales increasing 3%, which has caused us to moderate our first half outlook,” Reinckens continued. “That said we remain optimistic about our business given the very strong response to our dress assortments, which increase in percentage of our overall business in the quarter…. We remain confident in our strategies, which we expect to position us for profitability in the first half of fiscal 2012 and result in a sustained platform for growth longer term.”

Looking forward, for the second quarter, the company expects comparable store sales to increase in the low-to mid-single digit range following a 6.0% increase in the previous year.

The company currently expects second quarter net income of $0.19 to $0.22 per share. This compares to net income of $0.22 per share in the second quarter of fiscal 2011. Analysts expect the company to earn $0.25 per share, on revenues of $63.87 million.