Cato Reports March Same-Store Sales Up 24%

Raises 1Q Guidance

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Apr 08, 2010, 07:00 ET

CHARLOTTE, N.C., April 8 /PRNewswire-FirstCall/ -- The Cato Corporation (NYSE: CATO) today reported sales for the five weeks ended April 3, 2010 of $105.7 million, a 26% increase from sales of $84.0 million for the five week period ended April 4, 2009. Same-store sales for the month increased 24%.

Sales for the nine weeks ended April 3, 2010 were $185.7 million, a 17% increase over sales of $158.7 million for the nine weeks ended April 4, 2009. The Company's year-to-date same-store sales increased 14% over the prior year.

March sales were favorably impacted by the shift of Easter sales in to March this year versus April last year, while April sales are expected to be unfavorably impacted. Because of this shift, the best measure for performance is the combined sales for the two months.

"March sales were above expectations primarily due to warmer weather at the end of the month," commented John Cato, Chairman, President, and Chief Executive Officer. "Due to the higher than expected sales, we are raising our estimated first quarter earnings per diluted share to a range of $.79 to $.83, an increase of 23% to 30% over first quarter 2009 diluted earnings per share of $.64."

During the month of March, the Company opened one store and closed two stores. The new store opened in Sanford, NC. As of April 3, 2010, the Company operated 1,270 stores in 31 states, compared to 1,285 stores in 31 states as of April 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 first 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