CATO Reports January Same-Store Sales Up 14%

Reaffirms 4Q and Full Year EPS Estimate

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Feb 05, 2015, 07:00 ET

CHARLOTTE, N.C., Feb. 5, 2015 /PRNewswire/ -- The Cato Corporation (NYSE: CATO) today reported sales of $54.9 million for the four weeks ended January 31, 2015, an increase of 14% from sales of $48.1 million for the four weeks ended February 1, 2014. Same-store sales for the month increased 14% from last year.

Sales for fiscal fourth quarter ended January 31, 2015 were $237.8 million, an increase of 10% from sales of $215.5 million for the fourth quarter ended February 1, 2014. For the quarter, same-store sales increased 8% from last year. For the year, the Company's sales increased 7% to $977.9 million from 2013 sales of $910.8 million. For the year, same-store sales increased 4% from 2013.

"January same-store sales results were positively impacted due to adverse weather in the prior year," stated John Cato, Chairman, President, and Chief Executive Officer. "We continue to expect fourth quarter EPS results will be within our previous range of $0.25 to $0.29 versus $0.13 last year. For the year, we continue to expect diluted earnings per share will be within the range of $2.07 to $2.11 versus $1.86 last year."

The Company will release fourth quarter and fiscal year 2014 earnings on Thursday, March 19, 2015.

During January, the Company opened one store. The new store opened in Bullhead City, AZ.

During the fourth quarter, the Company opened six stores, relocated two stores and closed three stores. For the fiscal year ended January 31, 2015, the Company opened 33 stores, relocated four stores and closed seven stores. As of January 31, 2015, the Company operated 1,346 stores in 32 states, compared to 1,320 stores in 32 states as of February 1, 2014.

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. The Company also offers exclusive merchandise found in its Cato stores at www.catofashions.com. 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 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/A, 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