Cato Reports June Same-Store Sales Up 1%
Raises 2Q EPS Guidance
CHARLOTTE, N.C., July 8 /PRNewswire-FirstCall/ -- The Cato Corporation (NYSE: CATO) today reported sales of $88.2 million for the five weeks ended July 3, 2010, a 2% increase over sales of $86.8 million for the five weeks ended July 4, 2009. Same-store sales for the five-week period increased 1%.
Sales for the twenty-two weeks ended July 3, 2010 were $428.9 million, a 6% increase over sales of $403.0 million for the twenty-two weeks ended July 4, 2009. The Company's year-to-date same-store sales increased 5%.
"June same-store sales were slightly above expectations but we remain cautious due to the continuing uncertain economic outlook," commented John Cato, Chairman, President, and Chief Executive Officer. "With higher than expected second quarter same-store sales, we now estimate second quarter earnings per diluted share will be in the range of $.47 to $.50 versus our original guidance of $.43 to $.46 and $.56 last year, a 16% to 11% decrease. For comparison purposes, note that second quarter 2009 earnings per diluted share were higher by approximately $.05 due to a lower effective tax rate reduced under FIN 48 by the impact of tax audits that were resolved in the quarter."
During the month of June, the Company opened two new stores, relocated one store and closed one store. New stores opened in Homestead, FL and Chalmette, LA and the relocated store is in Homestead, FL. As of July 3, 2010, the Company operated 1,274 stores in 31 states, compared to 1,285 stores in 31 states as of July 4, 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 2010 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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