Thu, Aug 29, 6:02 PM (138 days ago)
For the second quarter ending August 3, 2024, The Cato Corporation reported total revenues of $168.6 million, an 8% decline from $182.9 million in the same period last year. Retail sales decreased to $166.9 million, attributed to a 2% drop in same-store sales and ongoing store closures, totaling 12 stores closed in the first half of fiscal 2024. Gross margin decreased to 34.6% of retail sales, reflecting rising costs related to occupancy and distribution, despite improved selling margins. Net income for the quarter was $95,000, significantly down from $1.1 million a year prior, with earnings per share remaining at $0.01. The effective tax rate dropped to 10.5% from 38.5% due to valuation allowances on deferred tax assets. Cash flow from operations decreased to $8.8 million from $21.6 million, influenced by changes in inventory and non-operating gains. The company maintained a strong liquidity position with $30.8 million in cash and equivalents, alongside an unsecured credit facility of $35 million, with no outstanding borrowings. Future uncertainties include inflationary pressures impacting consumer spending and supply chain disruptions, particularly from overseas manufacturing challenges.