Cato Fashions reports profit, sales accelerate compared to Q1 2020

The Cato Corporation (Cato Fashions) reported net income of 20.7 million dollars or 92 cents per diluted share for the first quarter compared to a net loss of 28.4 million dollars or loss of 1.19 dollars per diluted share for the first quarter ended May 2, 2020.

Sales for the quarter were 211.2 million dollars, up 114 percent compared to the first quarter ended May 2, 2020. Compared to the same period in 2019, sales decreased 7 percent. The Company’s same-store sales for the quarter increased 111 percent compared to 2020 and decreased 8 percent when compared to the same period in 2019.

“We remain cautiously optimistic about the remainder of the year as we see customer traffic improve, states continue to lift capacity limits as more people are vaccinated, the comfort level with venturing out to social events increases and people prepare to return to work,” stated John Cato, chairman, president, and CEO.

The company’s gross margin increased from 15.4 percent to 41.5 percent of sales in the quarter due to higher merchandise margins.

During the quarter, the company permanently closed five stores and as of May 1, 2021, operated 1,325 stores in 32 states, compared to 1,300 stores in 31 states as of May 2, 2020.