CATO REPORTS 2Q RESULTS
- Net income for Q2 2023 was $1.1 million, compared to a net loss of $2.3 million in Q2 2022.
- Gross margin increased to 35.1% in Q2 2023 from 32.4% in Q2 2022.
- The company opened two new stores and relocated one store during the quarter.
- Sales for Q2 2023 decreased 7% compared to Q2 2022.
- Same-store sales decreased 5% compared to 2022.
- SG&A expenses as a percent of sales increased from 31.2% to 34.0% in Q2 2023.
Sales for the second quarter ended July 29, 2023 were
For the six months ended July 29, 2023, the Company reported net income of
"Our year-to-date sales trend continues to be negatively impacted by pressure on our customers' discretionary spending," stated John Cato, Chairman, President, and Chief Executive Officer. "Our gross margin improved as we took steps to right size our inventory. However, we believe the back half of the year will remain challenging."
Gross margin increased to
Year-to-date gross margin increased to
During the second quarter ended July 29, 2023, the Company opened two new stores, relocated one store and closed 19 stores. As of July 29, 2023, the Company has 1,247 stores in 31 states, compared to 1,312 stores in 32 states as of July 30, 2022.
The Cato Corporation is a leading specialty retailer of value-priced fashion apparel and accessories operating three concepts, "Cato," "Versona" and "It's Fashion." The Company's Cato stores offer exclusive merchandise with fashion and quality comparable to mall specialty stores at low prices every day. The Company also offers exclusive merchandise found in its Cato stores at www.catofashions.com. Versona is a unique fashion destination offering apparel and accessories including jewelry, handbags and shoes at exceptional prices every day. Select Versona merchandise can also be found at www.shopversona.com. It's Fashion offers fashion with a focus on the latest trendy styles for the entire family at low prices every day.
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 SEC from time to time. The Company does not undertake to publicly update or revise the forward-looking statements even if experience or future changes make it clear that the projected results expressed or implied therein will not be realized. The Company is not responsible for any changes made to this press release by wire or Internet services
THE CATO CORPORATION | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||||||||
FOR THE PERIODS ENDED JULY 29, 2023 AND JULY 30, 2022 | |||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||
Quarter Ended | Six Months Ended | ||||||||||||||
July 29, | % | July 30, | % | July 29, | % | July 30, | % | ||||||||
2023 | Sales | 2022 | Sales | 2023 | Sales | 2022 | Sales | ||||||||
REVENUES | |||||||||||||||
Retail sales | $ | 181,181 | 100.0 % | $ | 195,006 | 100.0 % | $ | 371,492 | 100.0 % | $ | 399,939 | 100.0 % | |||
Other revenue (principally finance, | |||||||||||||||
late fees and layaway charges) | 1,690 | 0.9 % | 1,858 | 1.0 % | 3,429 | 0.9 % | 3,646 | 0.9 % | |||||||
Total revenues | 182,871 | 100.9 % | 196,864 | 101.0 % | 374,921 | 100.9 % | 403,585 | 100.9 % | |||||||
GROSS MARGIN (Memo) | 63,564 | 35.1 % | 63,257 | 32.4 % | 131,788 | 35.5 % | 135,947 | 34.0 % | |||||||
COSTS AND EXPENSES, NET | |||||||||||||||
Cost of goods sold | 117,617 | 64.9 % | 131,749 | 67.6 % | 239,704 | 64.5 % | 263,992 | 66.0 % | |||||||
Selling, general and administrative | 61,618 | 34.0 % | 60,768 | 31.2 % | 123,552 | 33.3 % | 121,209 | 30.3 % | |||||||
Depreciation | 2,510 | 1.4 % | 2,811 | 1.4 % | 4,867 | 1.3 % | 5,554 | 1.4 % | |||||||
Interest and other income | (1,334) | -0.7 % | (1,884) | -1.0 % | (2,231) | -0.6 % | (2,287) | -0.6 % | |||||||
Costs and expenses, net | 180,411 | 99.6 % | 193,444 | 99.2 % | 365,892 | 98.5 % | 388,468 | 97.1 % | |||||||
Income Before Income Taxes | 2,460 | 1.4 % | 3,420 | 1.8 % | 9,029 | 2.4 % | 15,117 | 3.8 % | |||||||
Income Tax Expense | 1,333 | 0.7 % | 5,694 | 2.9 % | 3,475 | 0.9 % | 7,643 | 1.9 % | |||||||
Net Income (Loss) | $ | 1,127 | 0.6 % | $ | (2,274) | -1.2 % | $ | 5,554 | 1.5 % | $ | 7,474 | 1.9 % | |||
Basic Earnings Per Share | $ | 0.06 | $ | (0.11) | $ | 0.27 | $ | 0.35 | |||||||
Diluted Earnings Per Share | $ | 0.06 | $ | (0.11) | $ | 0.27 | $ | 0.35 |
THE CATO CORPORATION | ||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(Dollars in thousands) | ||||||
July 29, | January 28, | |||||
2023 | 2023 | |||||
(Unaudited) | (Unaudited) | |||||
ASSETS | ||||||
Current Assets | ||||||
Cash and cash equivalents | $ | 55,977 | $ | 20,005 | ||
Short-term investments | 77,222 | 108,652 | ||||
Restricted cash | 3,877 | 3,787 | ||||
Accounts receivable - net | 26,915 | 26,497 | ||||
Merchandise inventories | 92,718 | 112,056 | ||||
Other current assets | 7,098 | 6,676 | ||||
Total Current Assets | 263,807 | 277,673 | ||||
Property and Equipment - net | 73,871 | 70,382 | ||||
Noncurrent Deferred Income Taxes | 9,888 | 9,213 | ||||
Other Assets | 21,770 | 21,596 | ||||
Right-of-Use Assets, net | 138,331 | 174,276 | ||||
TOTAL | $ | 507,667 | $ | 553,140 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current Liabilities | $ | 127,971 | $ | 135,597 | ||
Current Lease Liability | 32,431 | 67,360 | ||||
Noncurrent Liabilities | 16,342 | 16,183 | ||||
Lease Liability | 105,390 | 107,407 | ||||
Stockholders' Equity | 225,533 | 226,593 | ||||
TOTAL | $ | 507,667 | $ | 553,140 |
View original content:https://www.prnewswire.com/news-releases/cato-reports-2q-results-301903351.html
SOURCE The Cato Corporation
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