logo
  Join        Login             Stock Quote

Cato (CATO) Q3 Earnings Drop 24 Pct, Narrows 2012 Profit View

 November 15, 2012 09:11 AM


(By Balaseshan) Cato Corp. (NYSE: CATO) reported a 24 percent fall in earnings for the third quarter due to drop in same-store sales and margins, and that the apparel company narrowed its full year earnings forecast.

Earnings were $4.67 million or $0.16 per share for the third quarter, down from $6.11 million or $0.21 per share in the year-ago quarter.

Sales rose 2 percent to $197.6 million and same-store sales decreased 2 percent.

CATO's gross margin shrank to 34.0 percent from 35.2 percent mainly due to lower merchandise margin and higher occupancy costs related to store development.

Looking ahead for the fourth quarter, CATO still expects EPS between $0.38 and $0.42 per share, a 9 percent to 20 percent rise compared with $0.35 in the prior year quarter.

[Related -Chart Says: Buy This 'Boring' Retailer Now]

For the full year, the company now expects EPS in the range of $2.22 to $2.26, a slight rise to an increase of 2% compared to $2.21 in 2011. Previously, Cato had anticipated earnings per share to be within the range of $2.18 to $2.27. The company now expects to open 37 stores during 2012.

As of October 27, 2012, the company operated 1,306 stores in 31 states, compared to 1,292 stores in 31 states as of October 29, 2011.

CATO shares closed Wednesday's regular session at $27.72. The stock has been trading in the 52-week range between $22.81 and $32.32.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageRussell 2000 Showing Relative Weakness at the New Highs

A quick “Quad Index” Grid shows us that the small-cap Russell 2000 is showing relative strength to the read on...

article imageThe Poster Boy For Liberal Economics Discovers The Tax Factor

Paul Krugman seems to be having a supply-side-economics moment… sort of. Raising taxes, the NY Times read on...

article imageMacroprudential Policy And Distribution Of Risk

There is very little doubt that housing prices and leverage played a strong role in the global financial read on...

article imageIs the World Turning Japanese?

Many really think so, but reality suggests read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.