Cato Fashions swings to loss in Q2

The Cato Corporation reported a net loss of 2.3 million dollars or loss of 11 cents per diluted share for the second quarter compared to net income of 14 million dollars or 62 cents per diluted share for the second quarter last year.

Sales for the quarter were 195 million dollars, or a decrease of 5 percent and same-store sales decreased 5 percent compared to 2021.

For the six months, the company reported net income of 7.4 million dollars or 35 cents per diluted share compared to 34.7 million dollars or 1.54 dollars per diluted share for the same period last year. Sales for the first half were 399.9 million dollars, a decrease of 4 percent and year-to-date same-store sales decreased 4 percent.

"Our sales were negatively impacted during the first half of the year by the increasing pressure of inflation on consumers' ability to spend on discretionary items such as fashion apparel, resulting in significant markdowns to clear inventory," stated John Cato, the company’s chairman, president, and chief executive officer in a statement.

During the second quarter ended July 30, 2022, the company opened four stores, relocated two stores and closed seven stores and operated 1,312 stores in 32 states, compared to 1,325 stores at the end of July 31, 2021.