Cato(US:CATO)2024-08-27 19:33Financial Performance - Net income for Q2 2024 was $0.1 million or $0.01 per diluted share, down from $1.1 million or $0.06 per diluted share in Q2 2023[1] - For the six months ended August 3, 2024, net income increased to $11.1 million or $0.54 per diluted share, compared to $5.6 million or $0.27 per diluted share in the same period last year[2] Sales and Revenue - Sales for Q2 2024 were $166.9 million, an 8% decrease from $181.2 million in Q2 2023, attributed to closed stores and a 2% same-store sales decline[1] - Year-to-date sales were $342.2 million, an 8% decrease from $371.5 million for the same period in 2023, with a 4% same-store sales decline[2] Cost and Expenses - Gross margin for Q2 2024 decreased to 34.6% from 35.1% in Q2 2023, primarily due to higher distribution costs[2] - SG&A expenses as a percentage of sales increased to 34.9% in Q2 2024 from 34.0% in Q2 2023, despite a $3.4 million reduction in total SG&A expenses[2] Store Operations - The company closed five stores in Q2 2024, reducing the total number of stores to 1,166 from 1,247 in the previous year[4] Assets and Liabilities - Current assets as of August 3, 2024, totaled $243.5 million, slightly up from $243.1 million as of February 3, 2024[7] - Total liabilities decreased to $122.5 million from $126.9 million since February 3, 2024[7] Market Outlook - The company expects the sales environment to remain challenging in the second half of the year due to negative pressure on discretionary spending[2]