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Charlotte-based retailer Cato Corp. reported a sizable earnings jump for the three months ending Oct. 31, reporting a net income of $3 million. That compares with $823,000 during the same period last year.
Sales increased 6 percent in the quarter, to $191 million. Sales at stores open a year or more, an important barometer of retail performance, were up 4 percent.
"We had an exceptionally strong quarter," chairman, president and CEO John Cato said in a news release. "However, we recognize that much uncertainty still exists for our customers in this economic environment." The company expects same-store sales will be down 3 percent to flat in the current quarter.
The company, which focuses on selling value-priced women's clothing, has 1,291 stores in 31 states. Jen Aronoff
Kellogg laying off workers in Cary
Workers at Kellogg's biggest snack manufacturing plant in the nation got layoff notices Thursday morning.
The Battle Creek, Mich.-based company did not disclose how many jobs it's eliminating at its Cary factory but said the cuts there and other sites are part of program dubbed K-Lean.
The corporate acronym stands for "lean, efficient, agile, network," and is designed to bring production closer to customers by shifting operations among manufacturing plants. The global food and cereal company is trying to trim $1 billion from annual operating costs by 2011.
Kellogg's spokeswoman Kris Charles said there are no plans to shut down the Cary plant.
"As we simplify and standardize our processes at the Cary bakery, some jobs were impacted," Charles said. "This isn't about meeting a specific head count reduction but rather ensuring we have the right streamlined structure in place to position the company to continue to deliver sustainable, dependable results." John Murawski, (Raleigh) News & Observer
