In This Story
Cato Corporation (CATO+1.07%) has submitted its 10-Q filing for the quarterly period ended November 2, 2024.
The filing includes financial statements for the quarter, showing a decrease in retail sales to $144.6 million from $156.7 million in the same quarter the previous year. This decrease is attributed to a 3% decline in same-store sales and store closures.
Cost of goods sold for the quarter was $103.0 million, representing 71.2% of retail sales, compared to 67.5% in the same quarter of the previous year. This increase in cost ratio is due to deleveraging of occupancy and buying costs and higher distribution and freight costs.
The company reported a net loss of $15.1 million for the quarter, compared to a net loss of $6.1 million in the previous year. Basic and diluted loss per share were both $0.79, compared to $0.30 in the previous year.
Selling, general, and administrative expenses decreased to $57.9 million from $61.8 million, primarily due to lower payroll, advertising, and insurance expenses.
Interest and other income increased to $2.6 million from $1.5 million, primarily due to a gain on the disposal of the company's corporate aircraft and higher interest earned on investments.
Cash used in operating activities was $13.3 million, while cash provided by investing activities was $21.5 million, primarily due to the sale of other assets and lower purchases of short-term investments.
Cato had a working capital of $60.7 million as of November 2, 2024. The company expects to close approximately 65 stores in fiscal 2024.
The filing also details a revolving credit agreement providing for borrowings up to $35.0 million, with no borrowings outstanding as of the end of the quarter.
The company does not anticipate cash dividend payments to common stockholders in the near future.
Cato continues to focus on managing its retail operations amid inflationary pressures and supply chain disruptions impacting consumer behavior.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Cato Corporation (The) Class A quarterly 10-Q report dated November 26, 2024. To report an error, please email earnings@qz.com.