Cato Reports January Same-Store Sales Down 4%

Reaffirms 4Q and Full Year EPS Estimate

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Feb 04, 2010, 08:22 ET

CHARLOTTE, N.C., Feb. 4 /PRNewswire-FirstCall/ -- The Cato Corporation (NYSE: CATO) today reported sales of $52.1 million for the four weeks ended January 30, 2010 as compared to sales of $52.4 million for the four weeks ended January 31, 2009, a decrease of 1%. Same-store sales for the month decreased 4% from the prior year.

Sales for fiscal fourth quarter ended January 30, 2010 were $217.7 million, an increase of 4% over sales of $209.1 million for the fourth quarter ended January 31, 2009. For the quarter, same-store sales increased 2%. The Company's sales for 2009 increased 3% to $872.1 million from 2008 sales of $845.7 million. For the year, same-store sales increased 1%.

"January sales were negatively impacted by winter storms at the end of the month," stated John Cato, Chairman, President, and Chief Executive Officer. "Our inventory is fresh and in line with our sales trend. We continue to expect that fourth quarter EPS results will be in the range of $0.20 to $0.22 versus $0.13 last year and the year will be in the range of $1.51 to $1.53 versus $1.14 last year, an increase of 32% to 34%."

The Company will release fourth quarter and fiscal year 2009 earnings on Thursday, March 18, 2010.

During January, the Company opened six new stores. The Company also closed five stores during the month including four It's Fashion stores to convert them to It's Fashion Metro stores. New stores opened in Marianna and Quincy, FL, Stone Mountain, GA, Roanoke Rapids, NC, Lawton, OK and Anderson SC.

During the fourth quarter, the Company opened nine stores and closed 29 stores. For the fiscal year ended January 30, 2010, the Company opened 35 stores, relocated one store and closed 45 stores. The closings for the fourth quarter include four It's Fashion stores that were converted to It's Fashion Metro stores while the closing total for the year includes 14 such stores. As of January 30, 2010, the Company operated 1,271 stores in 31 states, compared to 1,281 stores in 31 states as of January 31, 2009.

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. 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 or estimated financial results for the fourth quarter and full year and any related assumptions 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 and other factors discussed under "Risk Factors" in Part I, Item 1A of the Company's most recently filed annual report on Form 10-K, as amended or supplemented, and in other reports the Company files with or furnishes to the SEC from time to time. 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