Women's apparel retailer Cato Q2 net income, sales up on improved supply chain

Reuters
Aug 21
Women's apparel retailer Cato <a href="https://laohu8.com/S/QTWO">Q2</a> net income, sales up on improved supply chain

Overview

  • Cato Q2 net income rises to $6.8 mln from $0.1 mln last year

  • Sales for Q2 up 5% to $174.7 mln, driven by 9% same-store sales increase

  • Gross margin improved due to lower distribution and buying costs

  • Company closed eight stores, reducing total to 1,101

Outlook

  • Cato anticipates challenges in H2 2025 due to tariff uncertainties

  • Company plans to tightly manage expenses

Result Drivers

  • SAME-STORE SALES - 9% increase in same-store sales drove revenue growth, attributed to resolution of 2024 supply chain disruptions

  • EXPENSE MANAGEMENT - SG&A expenses as a percentage of sales decreased due to lower payroll and insurance costs, despite higher advertising and corporate costs

  • GROSS MARGIN - Improved gross margin due to lower distribution and buying costs, partially offset by lower merchandise margins

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Retail Sales

$174.65 mln

Q2 EPS

$0.35

Q2 Net Income

$6.83 mln

Q2 Basic EPS

$0.35

Q2 Pretax Profit

$6.54 mln

Press Release: ID:nPn472l7Ya

(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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