Cato Fashions posts net loss, sales increase 3 percent

The Cato Corporation reported a net loss of 4.5 million dollars or 21 cents loss per diluted share for the third quarter ended October 29, 2022, compared to net income of 8.6 million dollars or 39 cents per diluted share for the third quarter ended October 30, 2021.

Sales for the third quarter were $174.9 million, an increase of 3 percent, while the company's same-store sales for the quarter increased 3 percent compared to 2021.

“The actions we've taken to improve our inventory levels, including increased markdowns, has put pressure on our financial performance during the quarter, as anticipated," stated John Cato, the company’s chairman, president, and CEO, adding, “We anticipate the remainder of the year to be challenging, given the unusual economic environment."

For the nine month period, the company reported net income of 3 million dollars or 14 cents per diluted share compared to net income of 43.3 million dollars or 1.93 dollars per diluted share for the nine months ended October 30, 2021.

Sales for the nine months were 574.9 million, a decrease of 2 percent, while year-to-date same-store sales decreased 2 percent compared to 2021.

During the third quarter, the company opened seven stores and closed two stores. As of October 29, 2022, the company operated 1,317 stores in 32 states, compared to 1,324 stores in 32 states as of October 30, 2021.