Cato Reports October Same-Store Sales Down 6%

Raises 3Q EPS Guidance

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Nov 03, 2016, 07:00 ET

CHARLOTTE, N.C., Nov. 3, 2016 /PRNewswire/ -- The Cato Corporation (NYSE: CATO) today reported sales for the four weeks ended October 29, 2016 of $68.9 million, a 6% decrease over sales of $73.2 million for the four week period ended October 31, 2015. Same-store sales for the month decreased 6%.

Sales for the third quarter ended October 29, 2016 were $207.0 million, a 7% decrease over sales of $223.3 million for the third quarter ended October 31, 2015. Same-store sales for the third quarter decreased 8%.

Sales for the thirty-nine weeks ended October 29, 2016 were $729.2, a decrease of 3% from sales of $754.1 million for the thirty-nine weeks ended October 31, 2015. The Company's year-to-date same-store sales decreased 4%.

"October same-store sales were below our expectations. However, markdown sales were less than anticipated. We now estimate third quarter earnings per diluted share will be in the range of $.24 to $.28 versus $.30 last year and up from our previous guidance of $.07 to $.11. Consequently, we will have higher markdown sales in the fourth quarter and will update our fourth quarter guidance in the third quarter earnings release on November 17, 2016," commented John Cato, Chairman, President, and Chief Executive Officer.

During the month of October, the Company closed one store.

Year-to-date, the Company has opened 3 new stores, relocated four stores, and closed three stores. As of October 29, 2016, the Company operated 1,372 stores in 33 states, compared to 1,370 stores in 32 states as of October 31, 2015.

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 apparel and accessories including jewelry, handbags and shoes at exceptional prices every day. Select Versona merchandise can also be found at www.shopversona.com. 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 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 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