Cato Reports July Comp Store Sales Down 1%
Lowers 2Q EPS Guidance CHARLOTTE, N.C., Aug. 7 /EMWNews/ -- The Cato Corporation (NYSE: CTR) today reported sales of $62.1 million for the four weeks ended August 2, 2008, an increase of 2% over sales of $60.7 million for the four weeks ended August 4, 2007. Comparable store sales for the month decreased 1%. Sales for the second quarter ended August 2, 2008 were $231.0 million, a 5% increase over sales of $219.0 million for the second quarter ended August 4, 2007. Second quarter comparable store sales increased 2%. Sales for the first half were $456.7 million, an increase of 3% over the prior year's first half sales of $443.1 million. Comparable store sales for the first half were flat compared to first half 2007. "Our comparable store sales trend was lower in July than in the past several months," commented John Cato, Chairman, President, and Chief Executive Officer. "We believe the benefit we have received from the stimulus checks has begun to decrease. As part of our normal review of store performance, we made the decision to close 47 underperforming stores at the end of July. After accruing the costs of closing these stores and incurring significantly higher medical expense, we now expect second quarter earnings per diluted share to be in the range of $.40 to $.42 versus our previous guidance of $.42 to $.44 and $.39 last year." The Company will release second quarter results on Thursday, August 21, 2008. During the month of July, the Company opened 7 stores and closed 50 stores including three It's Fashion stores closed upon the opening of new It's Fashion Metro stores. New stores opened in Montgomery, AL, Little Rock, AR, Westwego, LA, Durham, NC, Augusta and Rock Hill, SC, and Tyler, TX. During the first half, the Company opened 32 new stores and closed 63 stores. As of August 2, 2008, The Cato Corporation operated 1,287 stores in 31 states, compared to 1,306 stores in 31 states as of August 4, 2007. 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 offers exclusive merchandise with fashion and quality comparable to mall specialty stores at low prices, every day. Additional information on The Cato Corporation is available at http://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.
Major Newsire & Press Release Distribution with Basic Starting at only $19 and Complete OTCBB / Financial Distribution only $89