During the first quarter, which ended April 2, the women's apparel chain suffered because it was "under-penetrated in the fashion side of the business," said Brian Woolf, Cache's chairman. Same-store sales rose 1% from the same year-ago period, net sales jumped 9.8% to $62.8 million, but operating income fell to $2.8 million compared to $5.2 million during last year's Q1.

To combat the downturn, the company will adjust its assortment based on the region of a store, increase its marketing and expand the price points in units in some underperforming markets, like some in the Midwest. "This is an immediate reaction to what we consider an ongoing challenge," Woolf said.

Caché will also increase its store count this year by 10%. The company currently operates 258 Caché units, which target women between the ages of 25 and 45, as well as 37 Lillie Rubin units that focus on a 35- to 45-year-old age-range. This year Caché plans to open 20 Cachés and 10 Lillie Rubins.