Cato´s gains save the session

French Connection shares leaped more than 20% on Thursday after the British retailer

issued its third profit warning of the year. In a statement, the chain said it “appears unlikely” that its full-year profits will meet expectations after revenues fell 9.5 per cent in the three months to 17 May from the same time last year.
 
“We are being relatively conservative on our outlook because we are not sure that we can see much reason for expecting any bounceback in the market or any growth this year,” finance director Roy Naismith said. Analysts had previously forecast a pre-tax profit of between £3m to £4m, reported ‘City AM’.
 
“Clearly we have got to grasp hold of this UK retail position with the market that exists at the moment and ensure that we get back to a sensible position.” In the same vein, Naismith assured that the strategic review of the business launched in March, was “well under way”.
 
Meanwhile, Cato Corp.'s first-quarter net income rose 4 percent thanks to warmer weather and shrinking costs. Cato earned $31.7 million, or $1.09 per share, compared with $30.5 million, or $1.04 per share, in the prior-year period. Revenue for the period ended April 28 edged up 1 percent to $275.3 million from $273.7 million, benefiting from warmer weather. The retailer raised its full-year earnings outlook to account for its first-quarter performance.
 
Finally, Sears Canada Inc announced its unaudited first quarter results with a total revenue of $915.1 million, down from previous year´s $992.5 million (-7.8%). Same store sales decreased 6.3%. EBITDA (Earnings Before Interest, Taxes, Depreciation, Amortization and Non-Operating Activities) for the quarter this year was a loss of $30.1 million compared to a loss of $22.3 million for the same period last year. Net earnings for the quarter this year were $93.1 million or 91 cents per share compared to a net loss of $47.0 million or 45 cents per share for the same period last year.
 
"Although not reflected in our top line sales, there are positive signs of progress in many areas of our business," commented Calvin McDonald, President and Chief Executive Officer, Sears Canada.