The Cato Corporation, a US-based retailer of women's fashions and accessories, reported 114 per cent sales growth to $211.2 million in its first quarter (Q1) FY21 ended on May 1, 2021, compared to the sales of $98.8 million in the corresponding quarter of previous fiscal. The company’s net income for Q1 was $20.7 million (Q1 FY20: loss $28.4 million).
“We remain cautiously optimistic about the remainder of the year as we see customer traffic improve, states continue to lift capacity limits as more people are vaccinated, the comfort level with venturing out to social events increases and people prepare to return to work,” John Cato, chairman, president, and chief executive officer at Cato Corporation, said in a press release.
Gross margin during Q1 FY21 was $87.5 million ($15.2 million). The company’s cost of goods sold grew to $123.6 million ($83.6 million), while selling, general and administrative expenses were $63.2 million ($52.5 million).
According to the company, it permanently closed 5 stores during the reported period. As of May 1, 2021, the company has 1,325 stores in 32 states, compared to 1,300 stores in 31 states as of May 2, 2020.
“As the effects of the pandemic remain ongoing, there still remains a high level of uncertainty as to their continued impact on the retail industry as a whole. The lingering effects of the prolonged supply chain disruption are also a concern,” Cato added.
“In light of these uncertainties, we remain cautiously optimistic about the remainder of the year. However, should our strong start continue through the first half, we expect to revisit store development opportunities and other projects suspended due to Covid,” Cato concluded in the release.
