By Ben Glickman
Shares of Cato tumbled after the company suspended its quarterly dividend citing challenging economic conditions and slipping sales.
The stock was down 28% to $3.56 in midday trading Friday following an 18% drop on Thursday. Shares were on pace for their lowest close since June 1997 and their largest percentage drop since October 1987.
The women's fashion retailer before the market open suspended its 17 cent per share quarterly cash dividend, which has been unchanged since 2021.
The dividend move comes after Cato reported lackluster third-quarter sales, leading the Charlotte, N.C., company to swing to a loss. Sales fell 8%, which it attributed to continued weakness in consumers' discretionary spending, as well as major hurricanes and supply chain issues.
Write to Ben Glickman at ben.glickman@wsj.com
(END) Dow Jones Newswires
November 22, 2024 11:27 ET (16:27 GMT)
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