Net sales of US retailer Cato Corporation at $156.7 mn in Q3 FY23

The company reported a net loss of $6.1 million, or $0.30 per diluted share, for the quarter ending October 28, 2023. This loss is greater than the net loss of $4.5 million, or $0.21 per diluted share, recorded in the third quarter of the previous year.

Cato Corporation's gross margin increased from 29.3 per cent to 32.5 per cent of sales in the quarter. Selling, general and administrative expenses as a percent of sales rose from 35.1 per cent to 39.4 per cent during the quarter, the company said in a press release.

During the third quarter, Cato Corporation opened one store and closed three. Year-to-date, the company opened nine stores and closed 44. As of October 28, 2023, the company operates 1,245 stores in 31 states, a decrease from 1,317 stores in 32 states as of October 29, 2022.

For the nine months ending October 28, 2023, the company experienced a net loss of $0.5 million, or $0.02 per diluted share. This contrasts with the net income of $3.0 million, or $0.14 per diluted share, for the same period in FY22. Sales for these nine months were $528.2 million, an 8 per cent decrease from $574.9 million in the corresponding period of the previous year. Year-to-date same-store sales also decreased by 6 per cent compared to FY22.

"Our year-to-date sales trend continues to be negatively impacted by declining spending on goods, as well as our customers' discretionary spending levels," stated John Cato, chairman, president, and chief executive officer.  "Our gross margin rate continues to improve compared to 2022, as we continue to focus on controlling our inventory in this difficult economic environment.  However, given the current economic conditions, we believe that the fourth quarter will remain challenging."

Fibre2Fashion News Desk (DP)