Cato earnings growth slows in third quarter, comp sales inch forward
Womenswear retailer Cato Corp. reported on Tuesday net income rose slightly for the third quarter, with comparable sales for the three months inching forward 1%.
The Charlotte, North Carolina-based Cato said net income increased to $3.8 million for the third quarter ended November 3, surpassing last year's figure of $2.7 million. The result equated to earnings per diluted share of $0.16, compared to $0.11 last year.
Meanwhile, sales for the quarter totalled $187.9 million, slightly down on sales last year, which recorded $188.4 million for the corresponding quarter.
"While we had positive same-store sales and better merchandise margins than last year due to lower markdown sales the results, excluding favorable litigation settlements, did not meet our expectations," stated John Cato, Chairman, President, and Chief Executive Officer.
"Also, given our weakening sales trend, we now expect fourth quarter results to be well below our expectations."
On a nine-month basis, net income totalled $33.7 million, compared to $24 million in 2017, while earnings per diluted share were $1.36 compared to $0.93 last year.
Sales for the nine months reached $630.8 million, flat compared to sales last year. Year-to-date same-store sales increased 1% to last year.
As of November 3, the company said it now operates 1,350 stores in 33 states, twenty stores down on last year.
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