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

Courtesy: UPM Raflatac

Apparel/Garments | On 17th Jan 2017

New residue free textile label adhesive from UPM Raflatac

Producer of self adhesive label materials UPM Raflatac, has...

Courtesy: Authentic Brands Group

Apparel/Garments | On 17th Jan 2017

Teen retailer Aéropostale reopens 500 stores in US

Teen apparel retailer Aéropostale has reopened 500 stores in the US,...

Courtesy: Centric Software

Information Technology | On 17th Jan 2017

Centric releases version 6.0 of PLM solution

Centric Software, the leading PLM solution for fashion, retail,...

Interviews View All

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Victor Chao
Esmetex

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

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

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
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search