For the three months ended Oct. 29, Cato posted a net income increase of 5% to $4.9 million, or 17 cents a share, compared with $4.7 million, or 16 cents a share, in the year-ago period. Analysts’ average estimate expected 14 cents a share.
Net sales were up 1% to $198.8 versus the consensus estimate for $201.2 million in sales. Comparable store sales fell 1%.
“Our third-quarter results were above expectations and were primarily the result of a stronger-than-estimated October,” said John Cato, chairman, president/ceo.
Gross margin widened to 35.2% from 34.0% last year, primarily due to higher merchandise margin. Sales, general and administrative expenses increases to 30.7% from 29.5% last year due to store fixture write-offs and accrued incentive compensation offset by lower insurance expense.
Cato said that the company expects fourth quarter sales results will be “in line with our year-to-date trend with same-store sales in the range of down 3% to flat.”
The company forecast fourth quarter earnings to be in the range of 17 cents to 23 cents a share. Analysts’ consensus is for 20 cents a share.
For its fiscal year, Cato forecast earnings in the range of $1.90 to $1.96 a share, down from $2.11 last year. Analysts’ estimate is for $1.90 a share.
So far this year, Cato has opened 16 new stores, relocated four and closed eight. The company operates 1,318 stores in 32 states.
For commercial purposes, extract supplements can be obtained from the fruit of the pericarp. Garcinia cambogia reviews is performed by a physician Chen and Oz to prove that it is an herb for weight loss, a lot of research has been done. Studies, Garcinia cambogia extract supplementation decreases the weight of the body fat accumulation, was shown to have a positive effect on prevention. We are important substances such as cholesterol (LDL), reduces the serum leptin and triglycerides. In addition, it will increase the level of serotonin and cholesterol (HDL). The study also, Garcinia cambogia extract supplements, has proven that there are no significant adverse effects on many of the eight weeks, such as its use.