Home / Knowledge / News / Apparel/Garments / Net income at Cato Corp soars 28% in Q4FY16
Net income at Cato Corp soars 28% in Q4FY16
Mar '16
Courtesy: CATO
Courtesy: CATO
Net income at specialty retailer of value priced fashion apparel and accessories, Cato Corporation soared 28 per cent year on year for the three months period ended January 30, 2016.

For the fourth quarter of fiscal 2016, the company reported net income of $11.8 million or $0.42 per diluted share, compared to net income of $9.2 million or $0.33 per diluted share in the fiscal ago quarter.

“Resultantly, net income increased 28 per cent and earnings per diluted share rose 27 per cent, both growing over the prior fiscal's fourth quarter,” Cato said in a press release.

Sales for fourth quarter of fiscal 2016 rose slower at $247.3 million, up 4 per cent from sales of $237.8 million for the fourth quarter of fiscal 2015, while same-store sales rose just 1 per cent.

In the reporting quarter, gross margin declined to 36.1 per cent of sales from 36.5 per cent in the earlier fiscal's fourth quarter.

“Gross margin primarily reduced due to merchandise margins and higher occupancy costs,” the apparel explained in the press release.

SG&A expenses for the reporting quarter were 28.6 per cent of sales as against 30.6 per cent and were down due to lower accrued incentive compensation, which is based upon performance to incentive plan targets.

The company's effective income tax rate for the quarter increased to 29.6 per cent from 19.6 per cent in the last fiscal's same quarter, due to impact of favourable tax adjustments in the fourth quarter of fiscal 2015.

During the fiscal, Cato opened 31 stores, relocated 11 stores and closed five stores and as of January 30, 2016, operated 1,372 stores in 32 states.

“Cato continues to maintain a strong balance sheet, with approximately $283 million in cash and short-term investments and no debt," CEO John Cato said.

In its outlook for fiscal 2017, Cato believes the fiscal could be difficult, due to the continued volatility and overall difficulty in the retail environment.

Cato estimates first quarter of fiscal 2017 same-store sales to be in the range of flat to down 2 per cent, but expects gross margin rate will remain between 42.6-42.8 per cent. (AR)

Fibre2Fashion News Desk – India

Must ReadView All

Courtesy: Bruckner

Textiles | On 3rd Dec 2016

Indian textile companies opt for Brückner stenter lines

Indian textile firms Laxmipati Sarees, makers of polyester sarees and ...

Textiles | On 2nd Dec 2016

Indian currency crisis impacts global cotton market

The currency crisis in India, marked by insufficient supply of new...

Huang Wei from Fiber Raw Material Dept of Sinopec Chemical Commercial Holding speaking at the Forum

Textiles | On 2nd Dec 2016

Huge potential for nylon consumption: Experts

There is huge potential for increase in nylon consumption said...

Interviews View All

Victor Chao

‘In future, clothing boundary lines will become increasingly blurred.’

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Rahuul Jashnani

‘Online economy has changed the whole dynamics of buying habits.’

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search