Printer Friendly

CATO REPORTS THIRD QUARTER NET INCOME UP 28 PERCENT ON REVENUE INCREASE OF 22 PERCENT

 CHARLOTTE, N.C., Nov. 16 /PRNewswire/ -- The Cato Corporation (NASDAQ-NMS: CACOA) today reported a record net income of $4,436,000 for its fiscal third quarter, 1993, which is a 28 percent gain over third quarter 1992 net income of $3,457,000. Net income per share increased $.15 from $.12 for the quarter. Net income for the nine months ended Oct. 30, 1993, increased 48 percent to $19,672,000, or $.66 per share, as compared with $13,265,000, or $.51 per share, for the corresponding nine months of last year. Average shares and share equivalents outstanding increased 8 percent for the quarter and 14 percent for the nine months compared with the same periods last year.
 For the three months and nine months ended Oct. 30, 1993, total revenues were $97.5 million and $292.6 million, respectively, compared to $80.0 million and $237.4 million for the same periods in the prior year, which were increases of 22 percent and 23 percent for the third quarter and nine months, respectively. Same-store sales were up 7 percent and 9 percent for the third quarter and nine months, respectively, following same-store sales increases of 26 percent and 19 percent for the same periods of 1992.
 Wayland H. Cato Jr., chairman and chief executive officer, commented: "We are pleased with our record sales and earnings results for the third quarter and nine months ended Oct. 30. We continue to focus on identifying and satisfying the fashion desires of our customers, providing superior customer service and maintaining a lean and effective overhead cost structure. The thrust of all merchandising and marketing activities will be to continue to increase market share and to achieve sales levels which will provide increasing leverage on selling, general and administrative expenses. Our inventory levels are on plan.
 "Our store development program for 1993 will be complete by the end of November. We will have opened 86 new stores, relocated 22, expanded 23 units and closed 10 stores. The new, relocated and expanded stores are performing slightly better than our all-store average on an annualized sales volume basis. Cato is positioned with a unique niche, a successful customer-focused strategy and a team of outstanding associates to execute continued growth in sales and profits for the balance of this year."
 The Cato Corporation is a women's apparel specialty retailer operating under the names "Cato Fashion/Cato Plus" and "It's Fashion!" in 22 states. As of Oct. 30, 1993, The Cato Corporation operated 558 stores compared to 504 stores at Oct. 31, 1992.
 THE CATO CORPORATION
 Summary of Financial Results
 (In millions, except per share amounts)
 Three Months Ended Nine Months Ended
 Oct. 30, Pct. Oct. 31, Pct. Oct. 30, Pct. Oct. 31, Pct.
 1993 Revenue 1992 Revenue 1993 Revenue 1992 Revenue
 REVENUES:
 Retail
 Sales $94,598 97.0 $77,680 97.1 $284,042 97.1 $230,431 97.1
 Other income
 (principally
 finance and
 layaway
 charges) 2,926 3.0 2,283 2.9 8,545 2.9 6,942 2.9
 Total
 revenues 97,524 100.0 79,963 100.0 292,587 100.0 237,373 100.0
 GROSS
 MARGIN
 (MEMO) 32,957 33.8 28,252 35.3 106,313 36.3 86,729 36.5
 Cost of
 goods sold,
 including
 occupancy,
 distribution
 and
 buying 64,567 66.2 51,711 64.7 186,274 63.7 150,644 63.5
 Selling,
 general and
 admin-
 istrative 24,706 25.3 21,660 27.1 71,908 24.6 60,378 25.4
 Depreciation 1,341 1.4 1,029 1.3 3,789 1.3 3,090 1.3
 Total
 operating
 expenses 90,614 92.9 74,400 93.0 261,971 89.5 214,112 90.2
 OPERATING
 INCOME 6,910 7.1 5,563 7.0 30,616 10.5 23,261 9.8
 Interest 54 0.1 76 0.1 211 0.1 1,163 0.5
 INCOME BEFORE
 INCOME TAXES AND
 EXTRAORDINARY
 LOSS 6,856 7.0 5,487 6.9 30,405 10.4 22,098 9.3
 Income taxes 2,420 2.5 2,030 2.5 10,733 3.7 8,176 3.4
 INCOME BEFORE
 EXTRAORDINARY
 LOSS 4,436 4.5 3,457 4.3 19,672 6.7 13,922 5.9
 Extraordinary
 loss-net of
 income tax
 benefit 0 0.0 0 0.0 0 0 (657) -0.3
 NET INCOME $4,436 4.5 $3,457 4.3 $19,672 6.7 $13,265 5.6
 EARNINGS PER
 SHARE: (A),(B)
 PRIMARY $0.15 $0.13 $0.66 $0.52
 AVERAGE
 SHARES 29,802,362 27,547,103 29,629,077 25,367,850
 FULLY
 DILUTED $0.15 $0.12 $0.66 $0.51
 AVERAGE
 SHARES 29,909,258 27,658,191 29,710,817 26,127,258
 (A) Earnings per share for the nine month period ended Oct. 31, 1992, includes a loss of $.02 relating to the early retirement of debt.
 (B) Prior year share and per share amounts have been adjusted to reflect a three-for-two stock split effected June 28, 1993.
 -0- 11/16/93
 /CONTACT: V. Hollis Scott, senior vice president-treasurer, of The Cato Corporation, 704-551-7266/
 (CACOA)


CO: The Cato Corporation ST: North Carolina IN: REA SU: ERN

MH-MM -- CH004 -- 4941 11/16/93 09:37 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 16, 1993
Words:889
Previous Article:CROWN CRAFTS, INC. DECLARES REGULAR QUARTERLY CASH DIVIDEND
Next Article:J. ARMANDO RAMIREZ NAMED HEAD OF MERGER AND ACQUISITIONS, NATIONAL CITY CORPORATION
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters