NEW YORK (TheStreet) -- Cato (CATO) is down big following the release of its fourth quarter earnings report for the fiscal year ending Feb. 1, 2014. Cato shares were down 12.13% and trading at $26.42 on Thursday.
For the fourth quarter the women's fashion retailer reported a net income of $3.8 million or 13 cents a share. That number does not compare well to the $7.9 million or 27 cents a share it reported in the fourth quarter 2012. Net income and earnings per diluted share were down 52% between those two time periods.
Total sales for the company during the 2013 fourth quarter were $215.2 million, a 7% decrase from the $232 million it brought in for the quarter ending Feb. 2, 2013 while same store sales decreased 3% in that time period. For the fiscal year total sales were down 1% while same store sales were down 3%.
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TheStreet Ratings team rates CATO CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate CATO CORP (CATO) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."