Cato announces Q3 loss of $3.6 million, anticipates “challenging” year end
American womenswear retailer Cato Corporation reported a net loss of $3.6 million, or $015 per diluted share, for the third quarter on Thursday and highlighted the difficulties that it continues to face due to the ongoing Covid-19 pandemic. In the prior-year period, the company reported net income of $6.0 million or $0.24 per diluted share.
In the third quarter ended October 31, 2020, the Charlotte, North Carolina-based retailer’s total sales came to $149.2 million, down 21% from $189.4 million in the same period in the previous year. Same-store sales fell 23%.
“Sales in the third quarter reflected continued softening of customer demand as Covid-19 cases continued to rise throughout our market areas and many people still have not returned to work,” said Cato chairman, president and CEO John Cato in a release. “As we see this trend continuing, we anticipate that the remainder of the year will be challenging.”
Year to date, Cato’s sales totaled $414.3 million, decreasing 34% from $627.8 million in the prior-year period, while same-store sales declined 35%. Net loss for the nine-month period was $39.2 million, or $1.64 per diluted share, down from net earnings of $39.1 million, or $1.59 per diluted share, in the previous year.
Having implemented temporary store closures across its brick-and-mortar network in March due to the coronavirus crisis, Cato began reopening its retail locations in early May. As of June 15, all of the retailer’s stores have reopened, albeit with limited operating hours.
Over the course of the third quarter, Cato opened 16 new stores and permanently closed two locations. The company currently operates 1,347 stores in 33 U.S. states.
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