The Cato Corporation has reported net income of $12.1 million or $.38 per diluted share for the second quarter ended July 29th 2006, compared to net income of $10.7 million or $.34 per diluted share for the second quarter ended July 30th 2005.
Net income increased 13% and earnings per diluted share increased 12% over last year. Sales for the second quarter were $214.6 million, a 3% increase over sales of $208.3 million last year. Its second quarter comparable store sales decreased 1%.
For the six months ended July 29, 2006, the company earned net income of $32.9 million or $1.04 per diluted share, compared with net income of $29.1 million or $.92 per diluted share for the six months ended July 30th 2005, a net income increase of 13% and an earnings per diluted share increase of 13%.
Sales for the first half of 2006 were $444.4 million, a 5% increase over sales of $423.4 million in the first half of 2005. Comparable store sales for the first half were flat compared to the prior year.
"The growth in second quarter earnings was primarily a result of higher merchandise gross margin due to better sell-throughs of regular priced merchandise," said John Cato, Chairman, President, and CEO.
During the first half, the company opened 21 stores, relocated 11 stores, and closed six stores. As of July 29th 2006, it operated 1,259 stores in 31 states, compared to 1,197 stores in 31 states as of July 30th 2005.
The company's expectations for third quarter earnings per diluted share are in the range of $.15 to $.17 versus $.13 in 2005. For the fourth quarter, it expects earnings per diluted share to be in the range of $.42 to $.44 versus $.37 in 2005. Both quarterly estimates assume comparable store sales in the range of flat to up 2%.
marketing@alchempro.com
