Sales for the first quarter ended
"The pressure on our customers' discretionary spending levels due to high interest rates and inflation continue to negatively impact our sales," said
First quarter gross margin as a percentage of sales was 35.8% in both 2024 and 2023. Selling, General and Administrative expense decreased to
Additionally, the Company bought back 431,415 shares during the quarter.
During the first quarter ended
Statements in this press release that express a belief, expectation or intention, as well as those that are not a historical fact,
i
ncluding, without limitation, statements regarding the Company's expected or estimated operational financial results, activities or opportunities, and potential impacts and effects of interest rates, inflation or other factors that may affect our customers' discretionary spending or our costs are considered "forward-looking" within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations that are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those contemplated by the forward-looking statements.
Such factors include, but are not limited to
, any actual or perceived deterioration in, or continuation of negative trends in, the conditions that drive consumer confidence and spending, including, but not limited to, prevailing social, economic, political and public health conditions and uncertainties, levels of unemployment, fuel, energy and food costs, inflation, wage rates, tax rates, interest rates, home values, consumer net worth and the availability of credit; changes in laws, regulations or government policies affecting our business including but not limited to tariffs; uncertainties regarding the impact of any governmental action regarding, or responses to, the foregoing conditions; competitive factors and pricing pressures; our ability to predict and respond to rapidly changing fashion trends and consumer demands; our ability to successfully implement our new store development strategy to increase new store openings and the ability of any such new stores to grow and perform as expected; underperformance or other factors that may lead to, or affect the volume of, store closures; adverse weather, public health threats (including the global coronavirus (COVID-19) outbreak), acts of war or aggression or similar conditions that may affect our merchandise supply chain, sales or operations; inventory risks due to shifts in market demand, including the ability to liquidate excess inventory at anticipated margins; adverse developments or volatility affecting the financial services industry or broader financial markets; and other factors discussed under "Risk Factors" in Part I, Item 1A of the Company's most recently filed annual report on Form 10-K and in other reports the Company files with or furnishes to the
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
|
|
|
||||
|
FOR THE PERIODS ENDED |
|
|
|
|
|||
|
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
% |
|
|
% |
||
|
|
2024 |
Sales |
|
2023 |
Sales |
||
|
|
|
|
|
|
|
|
|
|
REVENUES |
|
|
|
|
|
|
|
|
Retail sales |
$ |
175,272 |
100.0 % |
|
$ |
190,311 |
100.0 % |
|
Other revenue (principally finance, |
|
|
|
|
|
|
|
|
late fees and layaway charges) |
|
1,827 |
1.0 % |
|
|
1,739 |
0.9 % |
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
177,099 |
101.0 % |
|
|
192,050 |
100.9 % |
|
|
|
|
|
|
|
|
|
|
GROSS MARGIN (Memo) |
|
62,767 |
35.8 % |
|
|
68,224 |
35.8 % |
|
|
|
|
|
|
|
|
|
|
COSTS AND EXPENSES, NET |
|
|
|
|
|
|
|
|
Cost of goods sold |
|
112,505 |
64.2 % |
|
|
122,087 |
64.2 % |
|
Selling, general and administrative |
|
56,752 |
32.4 % |
|
|
61,934 |
32.5 % |
|
Depreciation |
|
2,040 |
1.2 % |
|
|
2,357 |
1.2 % |
|
Interest and other income |
|
(5,821) |
-3.3 % |
|
|
(897) |
-0.5 % |
|
|
|
|
|
|
|
|
|
|
Costs and expenses, net |
|
165,476 |
94.4 % |
|
|
185,481 |
97.5 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income Taxes |
|
11,623 |
6.6 % |
|
|
6,569 |
3.5 % |
|
|
|
|
|
|
|
|
|
|
Income Tax Expense |
|
649 |
0.4 % |
|
|
2,141 |
1.1 % |
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
10,974 |
6.3 % |
|
$ |
4,428 |
2.3 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per Share |
$ |
0.54 |
|
|
$ |
0.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per Share |
$ |
0.54 |
|
|
$ |
0.22 |
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
|
|
||
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
2024 |
|
|
2024 |
||
|
|
(Unaudited) |
|
|
(Unaudited) |
||
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
39,101 |
|
|
$ |
23,940 |
|
Short-term investments |
|
66,250 |
|
|
|
79,012 |
|
Restricted cash |
|
3,533 |
|
|
|
3,973 |
|
Accounts receivable - net |
|
31,716 |
|
|
|
29,751 |
|
Merchandise inventories |
|
101,317 |
|
|
|
98,603 |
|
Other current assets |
|
7,724 |
|
|
|
7,783 |
|
|
|
|
|
|
|
|
|
Total Current Assets |
|
249,641 |
|
|
|
243,062 |
|
|
|
|
|
|
|
|
|
Property and Equipment - net |
|
64,568 |
|
|
|
64,022 |
|
|
|
|
|
|
|
|
|
Other Assets |
|
23,305 |
|
|
|
25,047 |
|
|
|
|
|
|
|
|
|
Right-of-Use Assets, net |
|
139,635 |
|
|
|
154,686 |
|
|
|
|
|
|
|
|
|
TOTAL |
$ |
477,149 |
|
|
$ |
486,817 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
Current Liabilities |
$ |
127,997 |
|
|
$ |
126,900 |
|
|
|
|
|
|
|
|
|
Current Lease Liability |
|
55,800 |
|
|
|
61,108 |
|
|
|
|
|
|
|
|
|
Noncurrent Liabilities |
|
14,607 |
|
|
|
14,475 |
|
|
|
|
|
|
|
|
|
Lease Liability |
|
81,834 |
|
|
|
92,013 |
|
|
|
|
|
|
|
|
|
Stockholders' Equity |
|
196,911 |
|
|
|
192,321 |
|
|
|
|
|
|
|
|
|
TOTAL |
$ |
477,149 |
|
|
$ |
486,817 |
View original content:https://www.prnewswire.com/news-releases/cato-reports-1q-earnings-302153715.html
SOURCE
