Cato Fashions reports Q2 net income of 14 million dollars

The Cato Corporation reported net income of 14 million dollars or 62 cents per diluted share for the second quarter compared to a net loss of 7.2 million dollars or 30 cents per diluted share for the second quarter ended August 1, 2020.

“Our sales were favorably impacted during the first half of the year by increased vaccination availability coupled with pent-up demand, an increase in social events, summer vacation travel and anticipated return to work for many customers, but were tempered by late merchandise shipments driven by continued supply chain disruptions,” stated John Cato, chairman, president, and chief executive officer.

Cato Q2 sales up 24 percent

The company said, sales for fiscal 2020 were significantly impacted by the closure of stores for six weeks due to the Covid-19 pandemic, beginning March 19, 2020. Sales for the second quarter were 206 million dollars or an increase of 24 percent. Compared to the same period in 2019, sales decreased 2 percent from sales of 210.4 million dollars for the quarter ended August 3, 2019. The company’s same-store sales increased 23 percent compared to 2020 and decreased 5 percent when compared to the same period in 2019.

For the six months, the company reported net income of 34.7 million dollars or 1.54 dollars per diluted share compared to a net loss of 35.6 million dollars or 1.48 dollars per diluted share for the six months ended August 1, 2020.

Sales for the six months were 417.2 million dollars, an increase of 57 percent to sales of 265.1 million dollars for the six months ended August 1, 2020. Compared to the same period in 2019, sales decreased 5 percent, while year-to-date same-store sales increased 56 percent to 2020 and decreased 7 percent compared to the same period in 2019.

As of July 31, 2021, the company had 1,325 stores in 32 states, compared to 1,333 stores in 31 states as of August 1, 2020.