Expects 2Q EPS Near High End of Guidance Range
CHARLOTTE, N.C., Aug. 6 /PRNewswire-FirstCall/ -- The Cato Corporation (NYSE: CTR) today reported sales of $60.4 million for the four weeks ended August 1, 2009, a decrease of 3% from sales of $62.1 million for the four weeks ended August 2, 2008. Same-store sales for the month decreased 3%.
Sales for the second quarter ended August 1, 2009 were $225.4 million, a 2% decrease from sales of $231.0 million for the second quarter ended August 2, 2008. Second quarter same-store sales decreased 3%.
Sales for the first half were $463.4 million, a 1% increase over the prior year's first half sales of $456.7 million. Same-store sales for the first half were flat compared to first half 2008.
"July same-store store sales were negatively impacted by the effect of last year's stimulus checks early in the month and by the shift of many states' tax-free weekends from fiscal July to fiscal August," stated John Cato, Chairman, President, and Chief Executive Officer. "Without the impact of these issues, we believe July same-store sales would have remained within our expected range of flat to down 3%. We expect the shift of the tax-free weekends to benefit August results. We now expect second quarter earnings per diluted share to be near the high end of our previous guidance range of $.48 to $.54 vs. $.41 last year."
The Company will release second quarter results on Thursday, August 20, 2009.
As of August 1, 2009, The Cato Corporation operated 1,285 stores in 31 states, compared to 1,287 stores in 31 states as of August 2, 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 second 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
