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.
Cato Corporation has recorded an increase in second-quarter earnings and reaffirmed its EPS guidance for the full year....
- Impact of the TPP on the US textile industry?
- Cambodia's future outsourcing prospects uncertain
- Hazardous chemical removal a key industry issue
- Who has signed up to the Greenpeace Detox Campaign
- JC Penney emphasises new merchandising strategy
- Vietnam proposes 15% rise to regional minimum wage
- Hong Kong's Li & Fung reports "solid" H1
- Avery Dennison forms JV with Ningbo Shenzhou
- Accord and Alliance discord over inspections
- Nike appointments to drive growth opportunities
- Global Database of the Top 1000 Apparel Producers - Company Names, Financial Performance, Key Executives, and Contact Details
- Global market review of denim and jeanswear – forecasts to 2020
- Textile Wholesaling in the UK - Industry Market Research Report
- Survey of the European Fabric Fairs: Spring/Summer 2015
- Prospects for the Textile and Clothing Industry in Turkey