1Q Comps Up 3%
Raises 1Q EPS Estimate
CHARLOTTE, N.C., May 7 /PRNewswire-FirstCall/ -- The Cato Corporation (NYSE: CTR) today reported sales of $79.4 million for the four weeks ended May 2, 2009, a 14% increase over sales of $69.4 million for the four weeks ended May 3, 2008. Comparable store sales increased 11% for the month.
Sales for the first quarter ended May 2, 2009 were $238.1 million, a 5% increase over sales of $225.8 million for the first quarter ended May 3, 2008. Comparable store sales increased 3% for the first quarter.
Because of the Easter shift, the best measure for year over year performance for March and April is the combined sales for the two months, which increased 3% overall and increased 1% on a comparable store basis.
'Sales and markdowns for the first quarter were better than expected and resulted in higher merchandise margin,' said John Cato, Chairman, President, and Chief Executive Officer. 'We now estimate first quarter earnings per diluted share will be in the range of $0.58 to $0.62 versus $0.57 last year as restated, an increase of 2% to 9%. Given the continuing economic environment and the benefit we received from stimulus payments last year in the second quarter, we expect second quarter comp sales will fall within a range of down 3% to flat. We remain comfortable with our previous guidance for the remainder of the year.'
The Company now expects to open a total of 46 stores during 2009 including 13 new Cato stores and 33 new It's Fashion Metro stores. The estimated It's Fashion Metro openings include the conversion of approximately 15 existing It's Fashion stores.
The Company will release first quarter results on Wednesday, May 20, 2009.
During the month of April, the Company opened two new stores and closed two stores. New stores opened in Roebuck, AL and Indianola, MS. As of May 2, 2009, the Company operated 1,285 stores in 31 states, compared to 1,326 stores in 31 states as of May 3, 2008.
The Cato Corporation is a leading specialty retailer of value-priced women's fashion apparel 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 and year and estimated comp store sales, 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
