Lowers Previous Guidance for 3Q
CHARLOTTE, N.C., Oct. 11 /PRNewswire-FirstCall/ -- The Cato Corporation (NYSE: CTR) today reported sales of $65.8 million for the five weeks ended October 6, 2007, a decrease of 3% from sales of $67.7 million for the five weeks ended September 30, 2006. Comparable store sales for the five-week period were down 7% from the prior year.
Sales for the thirty-five weeks ended October 6, 2007 were $568.1 million, a decrease of 1% from sales of $572.4 million for the thirty-five weeks ended September 30, 2006. The Company's year-to-date comparable store sales decreased 3%.
"September sales were weaker than expected and below our year-to-date trend," stated John Cato, Chairman, President, and Chief Executive Officer. "With our current sales trend continuing into October, we now expect third quarter earnings per diluted share to be in the range of $0.07 to $0.09 versus our previous guidance of $0.10 to $0.15 and $0.18 last year."
During the month of September, the Company opened two new stores, relocated one store, and closed one store. New stores opened in Hillsborough, NC and Nacogdoches, TX. The relocated store is in Humboldt, TN. As of October 6, 2007, The Cato Corporation operated 1,309 stores in 31 states, compared to 1,269 stores in 31 states as of September 30, 2006. The Company now expects to open 60 to 65 new stores in fiscal 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 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 third quarter and expected store openings for 2007 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. Additional information concerning these and other important factors can be found in Item 1A. "Risk Factors" of the Company's most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission. 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
For further information: Thomas W. Stoltz, Executive Vice President, Chief Financial Officer of The Cato Corporation, +1-704-551-7201
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