The company also reported a loss in its second quarter, compared to last year's profit, with weak comparable sales.
Adjusted loss per share is now expected to be between $0.90 and $1.35, compared to the prior guidance of an adjusted loss of $0.95 to $1.55.
The updated guidance assumes comparable sales in a range of negative 4% to negative 7%.
Capital expenditures in 2017, net of construction allowances from landlords, are expected to be $40 million, compared to $67 million in 2016.
Michael Glazer, president and chief executive officer, said, "Looking ahead to the Fall season, we remain disciplined in managing expenses and inventory. We feel great about our inventory position, which is down 7% in our department stores. Based on our improved performance, we are raising guidance for the fiscal year."
Further, the company announced that its board of directors has declared a quarterly cash dividend of $0.05 per share, payable on September 13 to shareholders of record at the close of business on August 29.
In the second quarter, net loss was $6.3 million, or $0.23 per share, versus net income of $0.04 million or $0.00 per share in the prior year. On an adjusted basis, net loss was $4.1 million or $0.15 per share, compared to net income of $0.8 million or $0.03 per share last year.
Total sales increased 11.4% to $377.1 million from $338.4 million in the prior year. For the second quarter, comparable sales decreased 3.6%. ■
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