Cato Reports June Same-Store Sales Up 1% Reaffirms 2Q EPS Guidance
CHARLOTTE, N.C., July 7, 2011 /PRNewswire/ -- The Cato Corporation (NYSE: CATO) today reported sales of $90.4 million for the five weeks ended July 2, 2011, a 2% increase over sales of $88.2 million for the five weeks ended July 3, 2010. Same-store sales for the five-week period increased 1%.
Sales for the twenty-two weeks ended July 2, 2011 were $442.0 million, a 3% increase over sales of $428.0 million for the twenty-two weeks ended July 3, 2010. The Company's year-to-date same-store sales increased 1%.
"June same-store sales overall were slightly above expectations," stated John Cato, Chairman, President, and Chief Executive Officer. "However, same-store sales softened toward the end of the month compared to our year-to-date trend. We continue to expect second quarter earnings per diluted share will be in the range of $.57 to $.59, a 2% decrease to 2% increase compared to $.58 last year, as restated. As stated previously, we expect rising raw material and freight costs to have a negative effect on the Company's performance in the second half of 2011."
During the month of June, the Company opened two new stores in Middleburg Heights, OH and Grand Rapids, MI. As of July 2, 2011, the Company operated 1,286 stores in 31 states, compared to 1,285 stores in 31 states as of July 3, 2010.
The Cato Corporation is a leading specialty retailer of value-priced 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 and second half of 2011 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