Cato Corp. (CATO) Reports Q4 Loss of $0.62/Share

Cato Corp. (NYSE: CATO) reported Q4 EPS of ($0.62), versus ($0.48) reported last year. Revenue for the quarter came in at $211.1 million, versus $218.2 million reported last year.

The fourth-quarter and full-year results include a one-time tax expense of $12.3 million or $0.48 per diluted share due to the enactment of the "Tax Cuts and Jobs Act of 2017."

For the quarter, same-store sales decreased 8% from last year.

2018 Outlook

"We took corrective actions in 2017 to refine our merchandise and are cautiously optimistic about the effect on 2018 results,'' Mr. Cato said. "One of our biggest initiatives was to engage select outside vendors to assist our design and buying teams in developing our 2018 merchandise assortment. We have been increasing the mix of outside vendor product since the beginning of the year and expect to be at our target penetration in the second quarter of this year. This will help give us the added breadth of assortment to meet our customers' expectations.

"For the year, the Company is cautiously optimistic about improved sales and net income. Our focus will be on improving our merchandise and increasing sales through our existing stores and ecommerce."

The Company's estimates for 2018 also reflect the following assumptions:

The Company plans no new stores during the year.

The Company anticipates closing up to 34 stores by year-end.

Capital expenditures are projected to be approximately $7 million for continued investment to enhance and upgrade existing systems.

Depreciation is expected to be approximately $16 million for the year.

The effective tax rate is expected to be approximately 12%.

For earnings history and earnings-related data on Cato Corp. (CATO) click here.

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