Cato Q3 earnings increase 18 percent
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For the nine months ended November 1, 2014, the Company earned net income of 51.4 million dollars, compared to net income of 50.5 million dollars for the nine months ended November 2, 2013, an increase of 2 percent. Earnings per diluted share were 1.82 dollars compared to 1.73 dollars last year, an increase of 5 percent. Sales for the nine months ended November 1, 2014 were 740 million dollars, an increase of 6 percent from sales of 695.3 million dollars for the nine months ended November 2, 2013. Year-to-date same-store sales increased 3 percent.
“Our third quarter results exceeded our latest guidance,” stated John Cato, Chairman, President, and Chief Executive Officer, adding, “This was primarily the result of a stronger sales trend than last year. We continue to expect fourth quarter earnings per diluted share will be within our original guidance range, updated for share repurchases, of 0.13 dollars to 0.17 dollars versus 0.13 dollars last year, flat to an increase of 31 percent. For the year, earnings per diluted share are estimated to be in the range of 1.95 dollars to 1.99 dollars versus 1.86 dollars last year, an increase of 5 percent to 7 percent.”
Year-to-date, the Company has opened 27 new stores, relocated two stores, and closed four stores. The Company now expects to open 33 stores during 2014, down from its last estimate of 46 due to a lack of shopping center development and increased competition for available space. As of November 1, 2014, the Company operated 1,343 stores in 32 states, compared to 1,318 stores in 32 states as of November 2, 2013.