Cato Reports July Comp Store Sales Up 2%

Raises 2Q EPS Guidance

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Aug 05, 2010, 08:24 ET

CHARLOTTE, N.C., Aug. 5 /PRNewswire-FirstCall/ -- The Cato Corporation (NYSE: CATO) today reported sales of $62.7 million for the four weeks ended July 31, 2010, an increase of 4% over sales of $60.4 million for the four weeks ended August 1, 2009. Same-store sales for the month increased 2%.

Sales for the second quarter ended July 31, 2010 were $231.9 million, a 3% increase over sales of $225.4 million for the second quarter ended August 1, 2009. Second quarter same-store sales increased 2%.

Sales for the first half were $491.6 million, a 6% increase over the prior year's first half sales of $463.4 million. Same-store sales for the first half increased 5%.

"July same-store store sales continue to reflect good sell-throughs of regular price merchandise," stated John Cato, Chairman, President, and Chief Executive Officer. "As a result, we now expect second quarter earnings per diluted share to be in the range of $.50 to $.52 vs. $.56 last year. As previously noted, second quarter 2009 earnings per diluted share were higher by approximately $.05 due to a lower effective tax rate."

The Company will release second quarter results on Thursday, August 19, 2010.

During the month the Company opened five stores and closed four stores, including three It's Fashion stores to be converted to It's Fashion Metro stores. New stores opened in Decatur, AL, Swainsboro, GA, Lafayette, LA, Batesville, MS and Laurens, SC. As of July 31, 2010, The Cato Corporation operated 1,275 stores in 31 states, compared to 1,285 stores in 31 states as of August 1, 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 financial results for the second 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. 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