US: Promo environment hits Cato Corp's Q4
- Q4 earnings down 52%
- Margin flat at 34.7%
- Sales fall 7%
A highly promotional holiday sales season and poor weather conditions weighed on Cato Corporation's earnings in the fourth quarter.
Net income dropped to US$3.8m, down 52% from $7.9m a year earlier in the three months ended 2 February.
Gross margin was relatively flat at 34.7% of sales as merchandise margins held in the very promotional environment.
Sales fell 7% to $215.2m, while same-store sales dropped 3% from a year earlier.
"Results for 2013 were negatively impacted by the continuing difficult economic situation our customers have faced for some time now," said CEO John Cato. "Even with the very challenging environment, we have continued to grow our store base, manage our inventory, control costs and, most importantly, remain profitable."
Cato added that results were impacted by "a very promotional holiday sales season" as well as a number of winter storms in December and January. In addition, the comparison of fourth quarter results to the prior year was negatively impacted by this fiscal having one less week than the prior year period.
Canadean's "The Cato Corporation - Company Capsule" contains in depth information and data about the company and its operations. The profile contains a company overview, key facts, major products and ...
- TPP: now the real fight starts
- Why TPP implementation is far from a done deal
- Private label sourcing faces range of pressures
- Cambodia leads US apparel import growth in August
- Common themes unite Inditex and H&M supply chains
- Update: Negotiators agree landmark TPP trade deal
- Cambodia sets new minimum wage at US$140
- Nike debuts new fabric for adaptive breathability
- Vietnam releases new textile dye regulations
- New Bangladesh labour rules draw union criticism
- Wearable technology: The future market potential for smart garments and e-textiles
- Global Database of the Top 1000 Apparel Producers - Company Names, Financial Performance, and Contact Details
- Myanmar's Garment Sector in 2015 - now with updated members' directory
- Outdoor performance apparel: peaks, valleys, and green fields
- Ethiopia – the emerging textile and clothing industry