CATO - CATO Q1 Earnings Improve Y/Y on Lower Costs Sales Down | Benzinga
Cato Corporation (NYSE: CATO) reported first-quarter 2024 earnings of 54 cents per share, which marks a significant increase from the prior-year quarter's figure of 22 cents per share.
The company's retail sales for the quarter were $175.3 million, down from $190.3 million in the prior-year quarter. The 6% decline in same-store sales was a significant contributor to this drop. Other revenues, mainly from finance charges and layaway fees, were $1.8 million compared to $1.7 million previously. Total revenues stood at $177.1 million, down from $192.1 million.
The reduction in selling, general and administrative ("SG&A") expenses played a crucial role in improving profitability. Effective cost controls, especially in areas like payroll and advertising, helped offset some of the adverse impacts of lower sales. The overall decline in sales highlights the ongoing pressure on consumer's discretionary spending as a result of the challenges posed by high interest rates and inflation.