The Cato Corporation reported net income of 9.7 million dollars or 46 cents per diluted share for the first quarter compared to 20.7 million dollars or 92 cents per diluted share for the first quarter ended May 1, 2021.
Sales for the quarter were 204.9 million dollars or a decrease of 3 percent, while same-store sales decreased 2 percent compared to 2021.
"Our first quarter sales were negatively impacted by cooler weather," said John Cato, the company’s chairman, president and chief executive officer, adding, "As anticipated, we continued to experience late merchandise shipments, a result of the supply chain disruption and overseas Covid restrictions, coupled with the pressure of inflation on consumers' discretionary income and intermittent store closings due to the effects of the tight labour market."
"As we move forward, following two years of unpredictable business cycles, we are cautious about the remainder of the year in the face of these ongoing uncertainties," added Cato.
During the first quarter, the company opened four stores and relocated one store and operated 1,315 stores in 32 states as of April 30, 2022.