Cato's same-store sales decrease by 9% in December

By

Robin Driver

Published
Jan 4, 2018

The Cato Corporation reports same-stores sales of $94.7 million for the five weeks ended December 30, 2017, a 9% decrease compared to the same period in the previous year, when sales amounted to $104.4 million. 

Sales for the eleven months ended December 30, 2017, were down 13% to $787.9 million from $901.8 million for the same period in 2016.
 
John Cato, Chairman, President, and Chief Executive Office, stated in a release that "The December same store sales decline is consistent with our recent trend," adding that projected fourth-quarter earnings take into account “our current estimated impact of an additional expense of between $.20 and $.30 for the required adjustments due to the implementation of the "Tax Cuts and Jobs Act of 2017."

The Cato corporation is a value-price fashion retailer operating 1,355 stores in 33 states, under the names of Cato, Versona and It’s Fashion. The corporation previously operated 1,368 stores at the end of 2016.
 
As pointed out by the CEO, the Charlotte-based company’s December results are in line with the overall trend in data published by the brand in recent months, which has consistently reported falling sales since 2016.  Cato has struggled in the context of the retail decline which, despite a surprise holiday upturn, is still taking its toll on a number of US brands operating in traditional retail and facing, among other challenges, stiff competition from online competitors.

Expected fourth-quarter earnings are estimated to be a loss of between $.30 and $.45, a slight improvement compared to the loss of $.48 reported in the previous year.