Cato Reports January Same-Store Sales Down 8%

Reaffirms 4Q and Full Year EPS Estimate

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Feb 06, 2014, 07:00 ET

CHARLOTTE, N.C., Feb. 6, 2014 /PRNewswire/ -- The Cato Corporation (NYSE: CATO) today reported sales of $48.1 million for the four weeks ended February 1, 2014, a decrease of 25% from sales of $63.8 million for the five weeks ended February 2, 2013. The fiscal year ended February 1, 2014 contains 52 weeks versus 53 weeks in the fiscal year ended February 2, 2013, and January 2014 contains four weeks versus five weeks in January 2013. On a comparable four-week basis, total sales for the month decreased 4%, and same-store sales decreased 8% from last year.

Sales for fiscal fourth quarter ended February 1, 2014 were $215.5 million, a decrease of 7% from sales of $232.0 million for the fourth quarter ended February 2, 2013. On a comparable 13-week basis, total sales for the quarter decreased 1%, and same-store sales decreased 3% from last year. For the year, the Company's sales decreased 2% to $910.8 million from 2012 sales of $933.8 million. On a comparable 52-week basis, total sales for the fiscal year ended February 1, 2014 decreased 1%, and same-store sales decreased 3% from 2012.

"January same-store sales results were significantly impacted by winter storms during the month," stated John Cato, Chairman, President, and Chief Executive Officer. "We continue to expect fourth quarter EPS results will be within our previous range of $0.11 to $0.15 versus $0.27 last year. For the year, we continue to expect diluted earnings per share will be within the range of $1.84 to $1.88 versus $2.11 last year."

The Company will release fourth quarter and fiscal year 2013 earnings on Thursday, March 20, 2014.

During January, the Company opened six stores and closed two stores. New stores opened in Chalmette, LA, Mays Landing, NJ, Greenwood, SC, Beaumont and San Antonio, TX and Newport News, VA.

During the fourth quarter, the Company opened 16 stores, relocated one store and closed 14 stores. For the fiscal year ended February 1, 2014, the Company opened 32 stores, relocated five stores and closed 22 stores. As of February 1, 2014, the Company operated 1,320 stores in 32 states, compared to 1,310 stores in 31 states as of February 2, 2013.

The Cato Corporation is a leading specialty retailer of value-priced fashion apparel and accessories operating three concepts, "Cato", "Versona" and "It's Fashion". The Company's Cato stores offer exclusive merchandise with fashion and quality comparable to mall specialty stores at low prices every day. Versona is a unique fashion destination offering accessories and apparel including jewelry, handbags and shoes at exceptional prices every day. It's Fashion offers fashion with a focus on the latest trendy styles 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