Women's apparel retailer Cato Q2 net income, sales up on improved supply chain
Overview
Cato Q2 net income rises to $6.8 mln from $0.1 mln last year
Sales for Q2 up 5% to $174.7 mln, driven by 9% same-store sales increase
Gross margin improved due to lower distribution and buying costs
Company closed eight stores, reducing total to 1,101
Outlook
Cato anticipates challenges in H2 2025 due to tariff uncertainties
Company plans to tightly manage expenses
Result Drivers
SAME-STORE SALES - 9% increase in same-store sales drove revenue growth, attributed to resolution of 2024 supply chain disruptions
EXPENSE MANAGEMENT - SG&A expenses as a percentage of sales decreased due to lower payroll and insurance costs, despite higher advertising and corporate costs
GROSS MARGIN - Improved gross margin due to lower distribution and buying costs, partially offset by lower merchandise margins
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Retail Sales |
| $174.65 mln |
|
Q2 EPS |
| $0.35 |
|
Q2 Net Income |
| $6.83 mln |
|
Q2 Basic EPS |
| $0.35 |
|
Q2 Pretax Profit |
| $6.54 mln |
|
Press Release: ID:nPn472l7Ya
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