Cato Fashions anticipates challenging second half trading

The Cato Corporation’s net income declined to 0.1 million dollars or 1 cent per diluted share for the second quarter.

Sales for the quarter decreased 8 percent to 166.9 million dollars. The company’s same-store sales decreased 2 percent.

"Although the second quarter sales trend improved, the sales environment continues to be challenged by negative pressure on our customers' discretionary spending," stated John Cato, the company’s chairman, president, and chief executive officer in a release.

“We believe the back half of the year will remain challenging," Cato added.

For the six month period, the company reported net income rose to 11.1 million dollars or 54 cents per diluted share, while sales of 342.2 million dollars decreased by 8 percent with a same-store sales decrease of 4 percent.

Second quarter gross margin decreased to 34.6 percent of sales and year-to-date gross margin decreased to 35.2 percent.

During the second quarter the company closed five stores and operated 1,166 stores in 31 states at the end of August 3, 2024.