Shares of specialty chain The Cato Corp. fell 6.2 percent in early morning Nasdaq trading after the company said fourth-quarter net income declined 52.9 percent.
Shares of the company were trading at $28.24 at 9:47 a.m.
The company said for the three months ended Feb. 1, net income was $3.8 million, or 13 cents a diluted share, down from $7.9 million, or 27 cents, a year ago. The company also said retail sales were down 7.2 percent to $215.2 million from $232 million. Including other income such as layaway charges, total revenues for the quarter were off 7.3 percent to $217.6 million from $234.6 million.
John Cato, chairman, president and chief executive officer, said, “”Even with the very challenging environment, we have continued to grow our store base, manage our inventory, control costs and, most importantly, remain profitable. We have also continued to invest in our business by renovating and expanding facilities, upgrading systems and launching an e-commerce website in November. The e-commerce website launch went very smoothly and has been well received by customers. However, we do not expect e-commerce to have significant impact on 2014 results. In regard to the fourth quarter, earnings were impacted by a very promotional holiday sales season as well as a number of winter storms in December and January.”