Cato Fashions Q3 net loss widens

The Cato Corporation reported a net loss of 15.1 million dollars or 79 cents per diluted share for the third quarter, while sales decreased by 8 percent to 144.6 million dollars and same-store sales decreased 3 percent compared to 2023.

For the nine month period, the company’s net loss reached 4 million pounds or 24 cents per diluted share and sales were 486.8 million dollars, a decrease of 8 percent with same-store sales down 4 percent.

"Our third quarter sales trend deteriorated from the second quarter, in part due to three major hurricanes over a five week span, supply chain issues causing late merchandise receipts to the stores and continued negative pressure on our customers' disposable income," stated John Cato, the company’s chairman, president, and chief executive officer.

“We believe that the fourth quarter will remain challenging."

Gross margin for the quarter decreased from 32.5 percent to 28.8 percent of sales and year-to-date gross margin decreased to 33.3 percent of sales.

During the third quarter, the company opened one store and year-to-date, the company opened one store and closed 13 stores. As of November 2, 2024, Cato Fashions had 1,167 stores in 31 states.