US' Cato Corporation' sales at $175.3 mn for Q1 FY24

The company experienced a 6 per cent decline in same-store sales for the quarter. The gross margin as a percentage of sales remained steady at 35.8 per cent for both 2024 and 2023, the Cato Corporation said in a press release.

However, selling, general, and administrative expenses saw a reduction, decreasing to $56.8 million in Q1 FY24 from $61.9 million in Q1 FY23. As a percentage of sales, selling, general, and administrative expenses slightly decreased to 32.4 per cent in FY24 from 32.5 per cent in the previous year.

In terms of store operations, Cato Corporation did not open any new stores during the first quarter of FY24 and permanently closed seven stores. As of May 4, 2024, the company operated 1,171 stores across 31 states, compared to 1,264 stores in 32 states as of April 29, 2023.

"The pressure on our customers' discretionary spending levels due to high interest rates and inflation continue to negatively impact our sales," said John Cato, Chairman, president and chief executive officer. "With the pressure on our customers' discretionary spending levels, we remain cautious about the remainder of the year."

Fibre2Fashion News Desk (DP)