Home / Knowledge / News / Apparel/Garments / Cato Q1'FY14 diluted EPS drops marginally
Cato Q1'FY14 diluted EPS drops marginally
20
May '14
The Cato Corporation reported net income of $30.0 million or $1.04 per diluted share for the first quarter ended May 3, 2014, compared to net income of $30.8 million or $1.05 per diluted share for the first quarter ended May 4, 2013.  Net income decreased 3% and earnings per diluted share decreased 1% for the quarter.  
 
The Company repurchased 1.4 million shares during the quarter which increased the earnings per share by $.02.  Sales for the first quarter were $282.5 million, a 6% increase from sales of $267.2 million for the first quarter ended May 4, 2013.   The Company's same-store sales increased 3% in the quarter.
 
"Sales for the first quarter were above expectations," stated John Cato, Chairman, President, and Chief Executive Officer.  "Our expectations for the second quarter remain unchanged from what was included in the original guidance for the full year and reflect same store sales in the range of down 2% to flat.  However, due to the impact of share repurchases, the revised earnings per diluted share estimate for the second quarter is a range of $.40 to $.45 versus $.51 last year.  After adjusting our original 2014 guidance for first quarter actual results and share repurchases, our estimated earnings per diluted share for the full year is now a range of $1.66 to $1.79 versus $1.86 last year and versus original guidance of $1.47 to $1.66."
 
Gross margin increased 50 basis points to 41.8% of sales primarily due to higher merchandise contribution in the quarter.  SG&A expenses as a percent of sales increased 170 basis points to 23.9% during the quarter primarily due to higher accrued incentive compensation.  The effective tax rate increased 90 basis points to 37.7% versus the prior year at 36.8% due to less benefit from Work Opportunity Tax Credit.  The Company ended the quarter with cash and short-term investments of $243.5 million.
 
During the first quarter, the Company opened six stores and closed two stores.  As of May 3, 2014, the Company operated 1,324 stores in 32 states, compared to 1,307 stores in 31 states as of May 4, 2013. 
 
The Cato Corporation is a leading specialty retailer of value-priced fashion apparel and accessories operating three concepts, "Cato", "Versona" and "It's Fashion".  The Company's Cato stores offer exclusive merchandise with fashion and quality comparable to mall specialty stores at low prices every day. The Company also offers exclusive merchandise found in its Cato stores. Versona is a unique fashion destination offering accessories and apparel including jewelry, handbags and shoes at exceptional prices every day.  It's Fashion offers fashion with a focus on the latest trendy styles for the entire family at low prices every day. 

Cato Corporation


Must ReadView All

Courtesy: Swedfund

Textiles | On 27th May 2016

Swedfund to pilot new textile factory in Ethiopia

Swedish govt-owned development financier Swedfund and the Bangladeshi ...

Textiles | On 27th May 2016

Egypt signs deal with China to set up textile zone

Egypt and China signed a framework agreement earlier this week on to...

Courtesy: PVH Corp

Apparel/Garments | On 27th May 2016

PVH’s EPS exceeds guidance in Q1 2016

PVH Corp reported diluted earnings per share (EPS) of $1.50 on a...

Interviews View All

Frank Gossmann
Rotorcraft AG

What new innovations did Rotorcraft exhibit at the recent textile...

Smita Murarka
Amanté

Which fabrics will be in trend for lingerie in 2017? What aspects are...

Veronique Lee
Modavanti

Sustainable fashion is not necessarily pocket- friendly. Are consumers...

Mark Paterson
Technical Absorbents Ltd

<b><i>Mark Paterson, R&D manager of Technical Absorbents Ltd talks about...

Kai Poehler
Voith Paper GmbH & Co. KG

<b><i>The glass mat industry is growing by five to eight per cent...

Silke Brand-Kirsch
Schlegel und Partner

<b><i>Silke Brand-Kirsch, executive partner of Schlegel und Partner, a...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Karan Arora
Karan Arora

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

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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
May 2016

F2F Magazine

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search