cato

Cato Q2 Profit, Sales Rise

In Industry News, Reports, What's New by Jeff PrineLeave a Comment

catoCharlotte, NC—The Cato Corp. reported today that its second quarter profit rose 6% as total sales and comp sales increased.

For the quarter ended August 2, the value retailer posted net income of $15.7 million, or 56 cents a share. That’s up from $14.8 million or 51 cents a share, in the comparable period of last year.

Cato said its earnings per share boosted 3 cents from share repurchases in the second quarter.

Share Repurchases

Net sales went up to $243.8 million, up 6% from $229.4 million in the prior year second quarter, while comp store sales increased 3%.

Gross margin touched 38.9% under review against 36.8% in the corresponding quarter of 2013, which Cato said was primarily due to higher merchandise margins.

Second quarter selling, general and administrative as a percent of sales increased to 28% percent from 25.7% last year, primarily as a result of higher incentive compensation and point-of-sale equipment upgrades.

“Second quarter same-store sales were in line with our year-to-date trend,” Chairman/ President/CEO John Cato said in the release. He noted the company expects diluted earnings per share for the second half to be between 21 cents and 30 cents, adjusted for share repurchases.

During the first half of this year, Cato opened 11 new stores, relocated one store and closed three stores. It now expects to open 46 stores, down from the original plan of 65 in the current fiscal year.

As of August 2, Cato operated 1,328 stores in 32 states, compared to 1,306 stores in 31 states as of August 3, 2013.

 

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