Women’s apparel retailer Cato Corp., which has two stores in Surry County, has reported lower fourth-quarter same-store sales and reduced earnings.
The Charlotte-based company had a quarterly loss of $1.8 million, or 6 cents per diluted share. In the year-ago period, Cato earned $12.7 million, or 40 cents per diluted share. Revenue fell 9 percent to $209.4 million. Sales at stores in operation for at least a year dropped 6 percent.
For the year, Cato earned $32.3 million, or $1.03 per diluted share, down 37 percent from $51.5 million, or $1.62 per diluted share, in fiscal 2006. Revenue declined 3 percent to $834.3 million in fiscal 2007. Comparable-store sales fell 4 percent.
“Our 2007 results reflect the difficult retail environment,” said CEO John Cato. “Our comparable-store sales decrease and the resulting markdowns were the primary contributors to the lower earnings.”
The company expects expects 2008 earnings of $21-27 million or 72 cents to 93 cents per diluted share.
Cato operates 1,318 stores in 32 states, including those in Elkin and Mount Airy.
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