Cato Fashions cuts Q4 loss
The Cato Corporation reported a net loss of 3 million dollars or 14 cents loss per diluted share for the fourth quarter compared to a net loss of 6.5 million dollars or 30 cents per diluted share for the same quarter last year.
Sales for the fourth quarter were 177.5 million dollars, an increase of 2 percent, while same-store sales for the quarter increased 3 percent. For the year, the company's sales decreased 1 percent to 752.4 million dollars, while same-store sales decreased 1 percent compared to 2021.
"We are pleased that we were able to deliver comparable store sales growth in the fourth quarter, in these challenging economic times. That said, we were negatively impacted by late merchandise shipments for most of the year, leading to significantly more markdowns than anticipated," said John Cato, the company’s chairman, president and CEO in a release.
Fourth-quarter gross margin decreased from 36.9 percent to 31.3 percent of sales in 2022 and for the full year 2022, gross margin decreased from 40.5 percent of sales in 2021 to 32.3 percent of sales.
“We anticipate the impact of inflation on our operating expenses and associate wages to continue. Additionally, the current inflationary and higher interest rate environment will continue to pressure our customers' discretionary spending, " added Cato.
During 2023, the company plans to open up to 30 new stores and close up to 50 stores as leases expire.