The Cato Corporation reported a net loss of 7.2 million dollars or 30 cents per diluted share for the second quarter ended August 1, 2020, compared to net income of 11.9 million dollars or 48 cents per diluted share for the same quarter last year. Sales for the quarter were 166.3 million dollars, a decrease of 21 percent, while the company’s same-store sales decreased 24 percent to the same period last year. The company said, Cato closed all stores due to the Covid-19 pandemic beginning March 19, 2020. As of June 15, 2020, all stores had reopened.
“Sales softened through the quarter and into early August. As we see this trend continuing, we are cautious about the second half of the year,” stated John Cato, Chairman, President, and Chief Executive Officer of the company in a statement.
H1 sales decline 40 percent at Cato Fashions
For the six months period, the company reported a net loss of 35.6 million dollars or 1.48 dollars per diluted share, compared to net income of 33.1 million dollars or 1.34 dollars per diluted share for the same period ended August 3, 2019. The company added that sales for the six months were 265.1 million dollars, down 40 percent, while year-to-date same-store sales decreased 39 percent.
Gross margin decreased to 20.2 percent from 38 percent of sales in the second quarter, while year-to-date gross margin decreased to 18.4 percent of sales from 39.2 percent the prior year.
During the second quarter, the company opened 36 new stores, relocated one store and permanently closed three stores. As of August 1, 2020, the company operated 1,333 stores in 31 states, compared to 1,299 stores in 31 states as of August 3, 2019.