Home / Knowledge / News / Apparel/Garments / Strong merchandise margins at Cato in Q2FY18

Strong merchandise margins at Cato in Q2FY18

07
Sep '18
Courtesy: Cato Fashions
Courtesy: Cato Fashions
The Cato Corporation has seen strong merchandise margins in the second quarter of fiscal 2018 with net income of $6.5 million or $.26 per diluted share as against a net loss of $0.9 million or a loss of $.03 per diluted share in the second quarter of 2017. Sales were 206.8 million, or an increase of 1 per cent from $205.0 million during 2017 second quarter.

"We had a solid performance in the second quarter and first half of 2018 mainly due to positive same-store sales and strong merchandise margins, as a result of much lower markdown sales versus last year," said John Cato, chairman, president, and chief executive officer.  "However, again we are cautious about our second half merchandise margin improvement as markdown sales were not as significant in the second half of 2017."

For the six months ended August 4, 2018, the leading specialty retailer of value-priced fashion apparel and accessories, earned net income of $29.9 million, compared to net income of $21.4 million for the six months ended July 29, 2017.  Earnings per diluted share were $1.20compared to $0.82 last year.  Sales for the six months ended August 4, 2018 were $442.9 million, flat compared to sales of $442.7 million for the six months ended July 29, 2017.  Year-to-date same-store sales increased 1 per cent.

Gross margin increased 610 basis points to 37.2 per cent of sales in the quarter, primarily due to higher merchandise margins and lower buying and occupancy costs. SG&A expenses as a percent of sales increased 190 basis points to 33.3 per cent during the quarter primarily due to higher incentive compensation.  Income tax for the quarter was an expense of $1.0 million compared to a benefit of $1.2 million last year.  The company ended the quarter with cash and short-term investments of $228.6 million.

Year-to-date, the gross margin increased to 38.6 per cent of sales from 35.2 per cent the prior year primarily due to higher merchandise margins and lower buying and occupancy costs. The year-to-date SG&A rate was 30.4 per cent versus 28.9 per cent last year primarily due to higher incentive compensation and insurance costs. Income tax was an expense of $4.2 million compared to an expense of $2.6 million last year. (RR)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Clariant

Textiles | On 15th Jul 2020

PolyOne buys colour masterbatch businesses of Clariant

PolyOne Corporation, a global provider of specialised polymer...

Pic: Thiti Sukapan / Shutterstock.com

Apparel/Garments | On 15th Jul 2020

Japan's clothing imports down 6.2% in 2019-20

Japan’s imports of clothing and accessories decreased by 1.5 per cent ...

Pic: CGS

Retail | On 15th Jul 2020

US, UK buyers ready to pay more for sustainability: survey

The United Kingdom is home to more eco-friendly consumers, but both...

Interviews View All

Poojaa Kumar Deepak, Zeven

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Smith Vaghasia, Sanado India

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Top executives, Textile industry

Top executives
Textile industry

It will take some time for the people to change their buying choices

Alexander Foll,

Alexander Foll

Germany-based H Stoll AG & Co KG manufactures flat knitting machines....

Himanshu Jariwala,

Himanshu Jariwala

J Korin started as a partnership firm with four powerlooms in the textiles ...

Harssh Chheda,

Harssh Chheda

Mumbai-based Corporate Collars provides bespoke tailoring services for...

Mary-Cathryn Kolb, Brrr°

Mary-Cathryn Kolb
Brrr°

Atlanta-based private start-up Brrr° was founded in 2014 to develop...

Kazuaki Yazawa, Purdue University

Kazuaki Yazawa
Purdue University

Scientist <b>Kazuaki Yazawa</b> has developed thermoelectric semiconductor ...

Georg Reinhold, Trützschler  Nonwovens & Man-Made Fibers

Georg Reinhold
Trützschler Nonwovens & Man-Made Fibers

Trützschler Nonwovens & Man-Made Fibers, a part of the Trützschler Group,...

Divvya and Nidhhi Gambhir, Walnut

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Cigdem Akin, Cigdem Akin

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Sailesh Singhania, Sailesh Singhania Label

Sailesh Singhania
Sailesh Singhania Label

The Sailesh Singhania label was created to promote handwoven sarees 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

Leave your Comments


July 2020

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


Advanced Search