CHARLOTTE, N.C., May 27 /PRNewswire-FirstCall/ -- The Cato Corporation (NYSE: CATO) held its Annual Shareholders' Meeting on Thursday, May 27, 2010 at its corporate offices in Charlotte, NC.
John Cato, Chairman, President, and Chief Executive Officer, commented on the Company's 2009 performance in which Cato generated a 36% increase in both earnings per diluted share and net income. Mr. Cato also noted the Company recently reported a 44% increase in both earnings per diluted share and net income for the first quarter of 2010, the largest quarterly earnings in the Company's history. "The Company has posted back to back successful years in a difficult period by giving our customer what she wants – great fashion, great quality and low prices every day - in short, we have given her value," stated Mr. Cato.
Mr. Cato noted that in order to continue to meet customers' expectations, the Company has to continue to execute its strategies that have been built around value regardless of the economic conditions. He stated that Cato is constantly improving and changing the business within those core strategies. "An important part of Cato's culture and success is that we focus on making constructive change as opposed to knee-jerk reactions," commented Mr. Cato.
Mr. Cato discussed the Company's 2010 growth plans including that the Company continues to believe both the Cato and It's Fashion divisions provide growth opportunities for the future. He added the Company expects to open 10 Cato stores and 40 It's Fashion Metro stores this year and improve the merchandise selection in both divisions. "We are expanding our accessories to better support our apparel color stories including adding higher value merchandise and additional product categories," stated Mr. Cato in discussing the Cato stores. "This further ensures that we are the destination store for these critical add-ons that complete our customers' outfit." He noted that in 2009 the It's Fashion Metro concept strengthened its merchandise and now offers a much better assortment of national brands. "And, similar to the Cato stores, in 2010 we will be working to expand and improve our accessory assortments to complement our fashion apparel," commented Mr. Cato.
In a meeting of the Board of Directors prior to the Annual Meeting, the Board increased the Company's dividend 12% to $0.74 on an annualized basis. The current dividend represents a yield of 3.1% based on the May 27 closing price.
During the Annual Meeting, shareholders re-elected D. Harding Stowe for a three-year term ending in 2013. Shareholders elected new director Edward I. Weisiger, Jr. to a three-year term also ending in 2013. Shareholders also ratified the selection of PricewaterhouseCoopers LLP as the Company's independent registered public accounting firm for fiscal 2010.
The Cato Corporation is a leading specialty retailer of value-priced women's fashion apparel and accessories operating two divisions, "Cato" and "It's Fashion". The Company's Cato division offers exclusive merchandise with fashion and quality comparable to mall specialty stores at low prices every day. The It's Fashion division offers fashion with a focus on the latest trendy styles and nationally recognized urban brands for the entire family at low prices every day. As of May 1, 2010, the Company operated 1,272 stores in 31 states. Additional information on The Cato Corporation is available at www.catocorp.com.
Statements in this press release not historical in nature including, without limitation, statements regarding the Company's expected financial results, including the Company's dividend and store growth plans, are considered "forward-looking" within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations that are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those contemplated by the forward-looking statements. Such factors include, but are not limited to, the following: general economic conditions; competitive factors and pricing pressures; the Company's ability to predict fashion trends; consumer apparel buying patterns; adverse weather conditions and inventory risks due to shifts in market demand. Additional information concerning these and other important factors can be found in Item 1A. "Risk Factors" of the Company's most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise the forward-looking statements even if experience or future changes make it clear that the projected results expressed or implied therein will not be realized. The Company is not responsible for any changes made to this press release by wire or Internet services.
SOURCE The Cato Corporation
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