Cato reports net income & EPS for Q4 and 2008

19 Mar '09

4 min read

The Company estimates first quarter net income to be in a range of $14.4 million to $16.0 million, or $.49 to $.54 per diluted share, a decrease of 14% to 5% (the percentage change for the first quarter estimates reflect restatement of first quarter 2008 earnings per diluted share to $.57 under EITF 03-6-1). This estimate is based on comparable store sales of down 3% to flat.

The Company's net income estimates for 2009 also reflect the following items:
• The Company expects to open 55 new stores during 2009. The expected store openings include 15 new Cato stores and 40 new It's Fashion Metro stores (including the conversion of approximately 20 existing It's Fashion stores).
• The Company anticipates closing up to 25 stores by year end, excluding the 20 conversions mentioned above. At this time, no specific stores have been identified for closure.
• Capital expenditures are projected to be approximately $18 million, including $12 million for store development.
• Depreciation is expected to be approximately $23 million for the year.
• The effective tax rate is expected to be approximately 34.4%.

Cato Corporation

More Cato Corporation News... More Apparel/Garments News - United States Of America...