Cato(US:CATO)2022-05-25 16:00Sales Performance - Total retail sales for the first quarter of fiscal 2022 were $204.9 million, a decrease from $211.2 million in the first quarter of fiscal 2021[87]. - Same-store sales decreased primarily due to cooler, wetter weather, late merchandise shipments, and inflationary pressure on disposable income[87]. - Total revenues for the first quarter were $206.7 million, down from $213.1 million in the prior year[88]. Cost and Expenses - Cost of goods sold was $132.2 million, or 64.5% of retail sales, compared to $123.7 million, or 58.5% of retail sales in the first quarter of fiscal 2021[91]. - Gross margin dollars decreased by 17.0% to $72.7 million for the first quarter of fiscal 2022 compared to $87.6 million in the first quarter of fiscal 2021[91]. - Selling, general and administrative expenses were 29.5% of retail sales for the first quarter of fiscal 2022, a slight decrease from 29.9% in the prior year[92]. Profitability - Net income for the first quarter was 4.8% of total revenues, down from 9.8% in the first quarter of fiscal 2021[82]. - The effective income tax rate for the first quarter of fiscal 2022 was 16.7%, compared to 12.9% for the same period in 2021[96]. Store Operations - The company operated 1,315 stores at April 30, 2022, down from 1,325 stores at the end of the previous fiscal year's first quarter[88]. - The company expects to close approximately 25 stores in fiscal 2022[88]. Capital Expenditures and Investments - Expenditures for property and equipment totaled $4.4 million in the first three months of fiscal 2022, up from $0.6 million in the same period last year, primarily due to opening five new stores and IT investments[102]. - The Company expects to invest approximately $22.6 million in capital expenditures for the full fiscal 2022 year, including distribution center automation projects[102]. Cash Flow - Net cash provided by investing activities was $19.6 million in the first three months of fiscal 2022, compared to $34.2 million used in the same period of fiscal 2021[103]. - Net cash used by financing activities totaled $12.7 million in the first three months of fiscal 2022, compared to $5.5 million used in the same period of fiscal 2021, primarily due to increased share repurchases and dividends paid[104]. Shareholder Returns - The Board of Directors declared a quarterly dividend of $0.17 per share on May 19, 2022[105]. - As of April 30, 2022, the Company had 840,119 shares remaining in open authorizations under its share repurchase program[106]. Investment Portfolio - The Company's investment portfolio primarily consists of corporate bonds and government debt securities with underlying ratings of A or better[108]. - At April 30, 2022, the Company had $0.8 million of corporate equities and deferred compensation plan assets of $11.0 million[109]. - The Company does not believe its exposure to market rate risk from interest rate changes is material[112].