Fashion retailer Cato's Q3 sales rise 6%, net loss narrows to $5.2 mln

Reuters
11/20
Fashion retailer Cato's Q3 sales rise 6%, net loss narrows to $5.2 mln

Overview

  • Cato Q3 sales rise 6% yr/yr, same-store sales up 10%

  • Net loss narrows to $5.2 mln from $15.1 mln last year

  • Gross margin improves to 32% from 28.8% due to lower costs

Outlook

  • Company anticipates challenging fourth quarter due to slowdown in employment growth

  • Cato plans to manage expenses and inventory levels tightly in Q4

Result Drivers

  • SALES RECOVERY - Co attributes positive Q3 sales trend to absence of last year's hurricane disruptions and supply chain issues

  • COST MANAGEMENT - Gross margin improvement driven by lower freight, distribution, buying and occupancy costs

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Retail Sales

$153.74 mln

Q3 EPS

-$0.28

Q3 Net Income

-$5.19 mln

Q3 Basic EPS

-$0.28

Q3 Pretax Profit

-$6.35 mln

Press Release: ID:nPn88zJrma

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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