Fashion retailer Cato's Q3 sales rise 6%, net loss narrows to $5.2 mln
Cato's Q3 sales increased by 6% year-over-year, with same-store sales up 10%. The net loss narrowed to $5.2 million from $15.1 million last year. Gross margin improved to 32% due to lower costs. The company anticipates a challenging Q4 due to a slowdown in employment growth and plans to manage expenses and inventory tightly. The positive sales trend was attributed to the absence of last year's disruptions and effective cost management.
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Overview
- Cato Q3 sales rise 6% yr/yr, same-store sales up 10%
- Net loss narrows to $5.2 mln from $15.1 mln last year
- Gross margin improves to 32% from 28.8% due to lower costs
Outlook
- Company anticipates challenging fourth quarter due to slowdown in employment growth
- Cato plans to manage expenses and inventory levels tightly in Q4
Result Drivers
- SALES RECOVERY - Co attributes positive Q3 sales trend to absence of last year’s hurricane disruptions and supply chain issues
- COST MANAGEMENT - Gross margin improvement driven by lower freight, distribution, buying and occupancy costs
Key Details
Metric Beat/Mis Actual Consensu
s s
Estimate
Q3 $153.74
Retail mln
Sales
Q3 EPS -$0.28
Q3 Net -$5.19
Income mln
Q3 Basic -$0.28
EPS
Q3 -$6.35
Pretax mln
Profit
Press Release: For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
