(By Balachander) Cato Corp. (NYSE:CATO) sees earnings for the third quarter to be at the low end its forecast after the apparel retailer reported a 4 percent decline in same store sales for September.
The Charlotte, North Carolina-based company said same-store sales last month "reflect a minimal negative impact from Hurricane Issac and were mostly in line with our year-to-date trend."
For the third quarter ending October, Cato expects earnings per share at the low end of its guidance of $0.12 to $0.17, compared with $0.21 in the same period of last year. Wall Street analysts, on average, expect earnings of $0.17 per share for the three month period.
The company's September sales increased 1 percent to $71 million.
As of September 29, 2012, Cato operated 1,302 stores in 31 states, compared to 1,287 stores in 31 states as of October 1, 2011.
The company reported flat same-store sales for August, with total sales up 2 percent.
CATO shares closed at $29.60 on Wednesday. Over the past year, shares have been trading in the range of $21.61 to $32.32.