Cato Fashions posts 9 percent drop in Q1 net income

The Cato Corporation reported net income of 21.3 million dollars or 87 cents per diluted share for the first quarter ended May 4, 2019, compared to 23.4 million dollars or 94 cents per diluted share for the same quarter last year, a decrease of 9 percent and 7 percent, respectively. Sales for the quarter were 228.1 million dollars, down 3 percent, while same-store sales decreased 1 percent to last year.

"We are starting to see slightly more favorable sales trends and continue to believe our business has stabilized," stated John Cato, the company’s Chairman, President, and Chief Executive Officer in a statement, adding, "We remain cautiously optimistic."

The company said, gross margin for the quarter increased 1 percent to 40.3 percent of sales in the quarter, primarily due to higher merchandise margins. During the first quarter, the company closed 9 stores operated 1,302 stores in 31 states, compared to 1,351 stores in 33 states as of May 5, 2018.

Picture:Facebook/Cato Fashions