Cato(US:CATO)2021-08-24 16:00Sales Performance - Total retail sales for the second quarter of fiscal 2021 were $206.0 million, a 24% increase from $166.3 million in the same period last year[81]. - Same-store sales increased by 23% in the second quarter of fiscal 2021, primarily due to stores being open compared to closures in the prior year[81]. - For the six months ended July 31, 2021, total retail sales reached $417.2 million, a 57% increase from $265.1 million in the same period last year[81]. Cost and Expenses - Cost of goods sold for the second quarter was $115.6 million, or 56.1% of retail sales, down from 79.8% in the same quarter of fiscal 2020[85]. - Selling, general and administrative expenses (SG&A) were $71.0 million, or 34.5% of retail sales, compared to $44.0 million, or 26.4% of retail sales in the same quarter last year[86]. Profitability - Gross margin dollars increased by 169.9% to $90.4 million for the second quarter of fiscal 2021, compared to $33.5 million in the prior year[85]. - Net income for the second quarter of fiscal 2021 was $14.0 million, compared to a net loss of $7.2 million in the same quarter of fiscal 2020[77]. - Income tax expense increased to $4.6 million for the second quarter of fiscal 2021, compared to an income tax benefit of $3.9 million in the same quarter of fiscal 2020, reflecting a change in effective tax rate from 26.7% (benefit) to 18.0% (expense)[90]. Store Operations - The company operated 1,325 stores at July 31, 2021, a decrease from 1,333 stores at the end of the previous year's second quarter[82]. - The company expects to open fewer than 10 stores and close approximately 25 stores in fiscal 2021[82]. Cash Flow and Working Capital - Cash provided by operating activities was $82.0 million in the first six months of fiscal 2021, a significant increase of $130.2 million compared to a cash outflow of $48.2 million in the same period of fiscal 2020[92]. - Working capital increased to $148.2 million as of July 31, 2021, up from $108.6 million at January 30, 2021, primarily due to higher short-term investments[93]. Financing and Investments - Interest and other income decreased to $0.5 million (0.3% of retail sales) for the first six months of fiscal 2021, down from $1.0 million (0.6% of retail sales) in the same period of fiscal 2020[89]. - Capital expenditures totaled $1.1 million in the first six months of fiscal 2021, a decrease from $9.8 million in the same period of the previous fiscal year[96]. - Net cash used by investing activities was $64.9 million in the first six months of fiscal 2021, compared to $91.0 million provided in the same period of fiscal 2020[97]. - Net cash used in financing activities decreased to $8.8 million in the first six months of fiscal 2021, down from $17.6 million in the comparable period of fiscal 2020[98]. Share Repurchase and Financial Management - As of July 31, 2021, the company had 1,380,779 shares remaining in open authorizations under its share repurchase program[99]. - The company does not use derivative financial instruments, indicating a conservative approach to financial risk management[100].