CATO REPORTS 3Q RESULTS
Sales for the third quarter ended
For the nine months ended
"Our third quarter sales trend deteriorated from second quarter, in part due to three major hurricanes over a five week span, supply chain issues causing late merchandise receipts to the stores and continued negative pressure on our customers' disposable income," stated
Gross margin decreased from 32.5% to 28.8% of sales in the quarter due to higher markdowns, as well as, increased freight, distribution and occupancy costs as a percent of sales. SG&A expenses as a percent of sales increased from 39.4% to 40.0% of sales during the quarter primarily due to deleveraging of payroll costs, partially offset by lower advertising and insurance expenses. SG&A expenses were
Year-to-date gross margin decreased to 33.3% of sales from 34.6% in the prior year primarily due to increased occupancy, freight and distribution costs as a percent of sales, partially offset by increased merchandise margins. The year-to-date SG&A rate was 35.5% versus 35.1% primarily due to deleveraging of payroll costs and insurance costs, partially offset by lower advertising costs. SG&A expenses were
During the third quarter ended
Statements in this press release that express a belief, expectation or intention, as well as those that are not a historical fact, including, without limitation, statements regarding the Company's expected or estimated operational financial results, activities or opportunities, and potential impacts and effects of the coronavirus are considered "forward-looking" within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations that are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those contemplated by the forward-looking statements. Such factors include, but are not limited to, any actual or perceived deterioration in the conditions that drive consumer confidence and spending, including, but not limited to, prevailing social, economic, political and public health conditions and uncertainties, levels of unemployment, fuel, energy and food costs, wage rates, tax rates, interest rates, home values, consumer net worth and the availability of credit; changes in laws or regulations affecting our business including but not limited to tariffs; uncertainties regarding the impact of any governmental action regarding, or responses to, the foregoing conditions; competitive factors and pricing pressures; our ability to predict and respond to rapidly changing fashion trends and consumer demands; our ability to successfully implement our new store development strategy to increase new store openings and the ability of any such new stores to grow and perform as expected; adverse weather, public health threats (including the global coronavirus (COVID-19) outbreak) or similar conditions that may affect our sales or operations; inventory risks due to shifts in market demand, including the ability to liquidate excess inventory at anticipated margins; and other factors discussed under "Risk Factors" in Part I, Item 1A of the Company's most recently filed annual report on Form 10-K and in other reports the Company files with or furnishes to the
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED) |
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FOR THE PERIODS ENDED |
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(Dollars in thousands, except per share data) |
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Quarter Ended |
Nine Months Ended |
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|
% |
|
% |
|
% |
|
% |
||||||||
2024 |
Sales |
2023 |
Sales |
2024 |
Sales |
2023 |
Sales |
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REVENUES |
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Retail sales |
$ |
144,642 |
100.0 % |
$ |
156,682 |
100.0 % |
$ |
486,848 |
100.0 % |
$ |
528,174 |
100.0 % |
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Other revenue (principally finance, |
|||||||||||||||
late fees and layaway charges) |
1,528 |
1.1 % |
1,574 |
1.0 % |
5,049 |
1.0 % |
5,003 |
0.9 % |
|||||||
Total revenues |
146,170 |
101.1 % |
158,256 |
101.0 % |
491,897 |
101.0 % |
533,177 |
100.9 % |
|||||||
GROSS MARGIN (Memo) |
41,687 |
28.8 % |
50,850 |
32.5 % |
162,266 |
33.3 % |
182,638 |
34.6 % |
|||||||
COSTS AND EXPENSES, NET |
|||||||||||||||
Cost of goods sold |
102,955 |
71.2 % |
105,832 |
67.5 % |
324,582 |
66.7 % |
345,536 |
65.4 % |
|||||||
Selling, general and administrative |
57,876 |
40.0 % |
61,792 |
39.4 % |
172,809 |
35.5 % |
185,344 |
35.1 % |
|||||||
Depreciation |
2,737 |
1.9 % |
2,504 |
1.6 % |
7,106 |
1.5 % |
7,371 |
1.4 % |
|||||||
Interest and other income |
(2,646) |
-1.8 % |
(1,523) |
-1.0 % |
(10,209) |
-2.1 % |
(3,754) |
-0.7 % |
|||||||
Costs and expenses, net |
160,922 |
111.3 % |
168,605 |
107.6 % |
494,288 |
101.5 % |
534,497 |
101.2 % |
|||||||
Loss Before Income Taxes |
(14,752) |
-10.2 % |
(10,349) |
-6.6 % |
(2,391) |
-0.5 % |
(1,320) |
-0.3 % |
|||||||
Income Tax Expense (Benefit) |
322 |
0.2 % |
(4,272) |
-2.7 % |
1,614 |
0.3 % |
(797) |
-0.2 % |
|||||||
Net Loss |
$ |
(15,074) |
-10.4 % |
$ |
(6,077) |
-3.9 % |
$ |
(4,005) |
-0.8 % |
$ |
(523) |
-0.1 % |
|||
Basic Loss Per Share |
$ |
(0.79) |
$ |
(0.30) |
$ |
(0.24) |
$ |
(0.02) |
|||||||
Diluted Loss Per Share |
$ |
(0.79) |
$ |
(0.30) |
$ |
(0.24) |
$ |
(0.02) |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(Dollars in thousands) |
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|
|
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2024 |
2024 |
|||||
(Unaudited) |
(Unaudited) |
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ASSETS |
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Current Assets |
||||||
Cash and cash equivalents |
$ |
20,216 |
$ |
23,940 |
||
Short-term investments |
65,994 |
79,012 |
||||
Restricted cash |
3,355 |
3,973 |
||||
Accounts receivable - net |
24,776 |
29,751 |
||||
Merchandise inventories |
107,159 |
98,603 |
||||
Other current assets |
8,705 |
7,783 |
||||
Total Current Assets |
230,205 |
243,062 |
||||
Property and Equipment - net |
62,648 |
64,022 |
||||
Noncurrent Deferred Income Taxes |
0 |
0 |
||||
Other Assets |
19,783 |
25,047 |
||||
Right-of-Use Assets, net |
111,769 |
154,686 |
||||
TOTAL |
$ |
424,405 |
$ |
486,817 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||
Current Liabilities |
$ |
123,697 |
$ |
126,900 |
||
Current Lease Liability |
45,836 |
61,108 |
||||
Noncurrent Liabilities |
14,555 |
14,475 |
||||
Lease Liability |
63,218 |
92,013 |
||||
Stockholders' Equity |
177,099 |
192,321 |
||||
TOTAL |
$ |
424,405 |
$ |
486,817 |
View original content:https://www.prnewswire.com/news-releases/cato-reports-3q-results-302312302.html
SOURCE
Charles D. Knight, Executive Vice President, Chief Financial Officer, InvestorRelations@catocorp.com