Cato Fashions Q1 earnings improve but sales decline

The Cato Corporation reported net income of 11 million dollars or 54 cents per diluted share for the first quarter compared to 4.4 million dollars or 22 cents per diluted share for the same quarter last year.

Sales for the quarter were 175.3 million dollars, a decrease of 8 percent, while same-store sales decreased 6 percent.

"The pressure on our customers' discretionary spending levels due to high interest rates and inflation continue to negatively impact our sales," said John Cato, the company’s chairman, president and CEO in a media release.

During the quarter under review, the company did not open any stores and permanently closed seven stores.