The Cato Corp. reports third-quarter results that beat Wall Street’s estimates by 4 cents.
For the three months ended Nov. 1, net income was $5.7 million, or 20 cents a diluted share, from $4.9 million, or 17 cents, a year ago. Total revenues rose 7.4 percent to $216 million from $201 million, which included a 7.5 percent sales gain to $213.8 million from $198.8 million. Comparable-store sales rose 4 percent in the period.
The company said gross margin rate rose to 36.2 percent of sales from 35.2 percent last year, mostly due to higher merchandise margin.
John Cato, chairman and chief executive officer, said, “This was primarily the result of a stronger sales trend than last year.”
The company expects fourth quarter diluted EPS at between 13 cents to 17 cents, updated for share repurchases, and full year diluted EPS at $1.95 to $1.99.
As of Nov. 1, the value-priced women’s chain operated 1,343 stores in 32 states.