Cato Reports June Same-Store Sales Up 1% Reconfirms 2Q Guidance
CHARLOTTE, N.C., July 11, 2013 /PRNewswire/ -- The Cato Corporation (NYSE: CATO) today reported sales of $86.1 million for the five weeks ended July 6, 2013, a 3% increase from sales of $83.7 million for the five weeks ended June 30, 2012. Same-store sales for the five-week period increased 1%.
Sales for the twenty-two weeks ended July 6, 2013 were $435.0 million, down 1% to sales of $440.8 million for the twenty-two weeks ended June 30, 2012. The Company's year-to-date same-store sales decreased 3%.
"While June same-store sales were above trend," commented John Cato, Chairman, President, and Chief Executive Officer, "higher markdowns will affect our results for the quarter. However, we still expect second quarter earnings per diluted share will be within our original guidance of $.42 to $.48, a decrease of 29% to 19% compared to $.59 last year. Year-to-date same-store sales results have been volatile, driven in part by various economic uncertainties as well as unseasonable weather. We believe this uncertainty will continue and we remain cautious as we look toward the second half of the year. We remain comfortable with our original guidance."
During the month of June, the Company opened one store in Alpharetta, GA, relocated two stores in Knoxville, TN and Midland, TX and closed two stores. As of July 6, 2013, the Company operated 1,306 stores in 31 states, compared to 1,295 stores in 31 states as of June 30, 2012.
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. Versona is a unique fashion destination offering accessories and apparel including jewelry, handbags and shoes at exceptional prices every day. 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, as amended or supplemented, 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