Sales soar in Q3 at women's fashion apparel retailer Cato
16 Nov '05
3 min read
Fashion retailer Cato Corporation reported net income of $4.1 million for the third quarter ended October 29, 2005, compared to net income of $1.8 million for the third quarter ended October 30, 2004, an increase of 126 percent.
Earnings per diluted share for the third quarter were $0.13, compared $0.06 last year, an increase of 117 percent.
Sales for the third quarter were $177.8 million, a 9 percent increase over sales of $163.6 million last year.
Comparable store sales for the quarter increased 4 percent.
For the nine months ended October 29, 2005, the Company earned net income of $33.2 million compared to net income of $26.7 million for the nine months ended October 30, 2004, a 24 percent increase.
Earnings per diluted share were $1.04 compared to $.85 last year, a 22 percent increase.
Sales were $601.1 million for the first nine months of 2005, a 6 percent increase from sales of $565.9 million last year.
The Company's year-to-date comparable store sales increased 1 percent.
For the quarter, the gross margin rate increased to 32.6 percent versus 29.3 percent last year primarily due to a reduction in markdowns.
The SG&A rate increased to 28.8 percent from 27.2 percent last year primarily due to increased incentive compensation.
'Increased sales of regular priced merchandise and higher customer spending in hurricane affected states resulted in increased third quarter earnings,' commented John Cato, Chairman, President, and Chief Executive Officer.