Home / Knowledge / News / Apparel/Garments / Sales up marginally at apparel retailer Cato in Q3 FY'12
Sales up marginally at apparel retailer Cato in Q3 FY'12
22
Nov '12
The Cato Corporation reported net income of $4.7 million for the third quarter ended October 27, 2012, compared to net income of $6.1 million for the third quarter ended October 29, 2011, a decrease of 24%.  Earnings per diluted share for the third quarter were $0.16, compared to $0.21 last year, a decrease of 24%. 

Sales for the third quarter ended October 27, 2012 were $197.6 million, a 2% increase over sales of $194.1 million for the third quarter ended October 29, 2011.  Same-store sales for the quarter decreased 2%.

For the nine months ended October 27, 2012, the Company earned net income of $53.7 million, compared to net income of $54.7 million for the nine months ended October 29, 2011, a decrease of 2%.  Earnings per diluted share were $1.84 compared to $1.86 last year, a decrease of 1%. 

Sales for the nine months ended October 27, 2012 were $701.8 million, up slightly from sales of $699.1 million for the nine months ended October 29, 2011.  Year-to-date same-store sales decreased 2%.

For the quarter, the gross margin rate decreased to 34.0% from 35.2% last year primarily due to lower merchandise margin and higher occupancy costs related to store development.  The SG&A rate for the quarter decreased slightly to 29.5% from 29.6% last year primarily due to lower accrued incentive compensation offset by higher payroll costs.  The Company's effective tax rate for the third quarter was 31.6% vs. 31.4% last year.

Year-to-date, the gross margin rate was flat to the prior year at 38.6% of sales.  The year-to-date SG&A rate was 25.5% versus 25.7% last year primarily due to lower accrued incentive compensation somewhat offset by higher payroll costs.  The year-to-date effective tax rate increased to 37.3% vs. 35.4% last year, primarily due to the elimination of the benefit of the Work Opportunity Tax Credit for 2012.

"Our third quarter same-store sales reflect the difficult environment we have seen for much of the year and EPS for the quarter was in line with expectations," stated John Cato, Chairman, President, and Chief Executive Officer.  "Our third quarter gross margin fell due to the deleveraging of costs related to growth in new stores. 

"We continue to manage our costs well.  We expect fourth quarter earnings per diluted share will be within our original guidance of $0.38 to $0.42 versus $0.35 last year, a 9% to 20% increase.  For the year, earnings per diluted share are estimated to be in the range of $2.22 to $2.26 vs. $2.21 last year, a slight increase to an increase of 2%."

The Company's fourth quarter includes 14 weeks compared to 13 weeks in 2011 and the fiscal year includes 53 weeks compared to 52 weeks in 2011.  Earnings guidance for both the fourth quarter and year reflects the impact of the additional week.

Year-to-date, the Company has opened 25 new stores, relocated seven stores, and closed seven stores, one of which was the closing of an It's Fashion store to open an It's Fashion Metro store in the same market.  The Company now expects to open 37 stores during 2012.  As of October 27, 2012, the Company operated 1,306 stores in 31 states, compared to 1,292 stores in 31 states as of October 29, 2011.

The Cato Corporation is a leading specialty retailer of value-priced fashion apparel and accessories operating three concepts, "Cato", "Versona" and "It's Fashion". 

Cato Corporation


Must ReadView All

Textiles | On 24th Jul 2017

Govt extends deadline for GST composition scheme to Aug 16

The Government on India has extended the deadline for small...

L-R: Dhanapal, JMD, Best Corporation; Prabhu Damodaran, Convenor, ITF; Narayanasamy, MD, Micro Cotspin; Senthilnathan, MD Rasitex India; and Sabapathy, MD, Prasanna Spinning Mills

Textiles | On 24th Jul 2017

TN mills seek partnership with cotton growing states

Spinning mills in Tamil Nadu are seeking stronger partnership with...

Textiles | On 24th Jul 2017

Irani terms GST as a ‘great step towards transparency’

Union textiles minister Smriti Irani has termed the Goods and...

Interviews View All

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Kai Poehler
Voith Paper GmbH & Co. KG

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

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X