News Flash

Cato reports Dec comp store sales falls 6%

08 Jan '07

2 min read

The Cato Corporation reported sales for the five weeks ended December 30, 2006 of $100.5 million, a 4% decrease from sales of $104.3 million for the five weeks ended December 31, 2005. Comparable store sales for the month decreased 6% from last year.

Sales for the eleven months ended December 30, 2006 were $793.5 million, an increase of 3% over sales of $767.5 million for the eleven months ended December 31, 2005. The Company's year-to-date comparable store sales decreased 1% from the prior year.

"December sales were negatively impacted by a general softness in our business, unseasonably warm weather, and unfavorable comparisons to last year due to hurricane relief spending," commented John Cato, Chairman, President, and Chief Executive Officer.

"We are lowering our estimated fourth quarter earnings per diluted share to a range of $.34 to $.36 versus $.37 last year based on comparable store sales for the quarter of down 6% to down 5%. The estimated range includes $.02 for hurricane related insurance claims that we expect to be resolved by year-end."

"The impact of the claims were not included in the previous guidance of $.40 to $.43. For the year, earnings per diluted share are estimated to be in the range of $1.56 to $1.57 versus $1.41 last year, an increase of approximately 11%. We expect inventory to be on plan by the end of the year."

The Company's fourth quarter includes 14 weeks compared to 13 weeks in 2005 and the fiscalyear includes 53 weeks compared to 52 weeks in 2005. The additional week is expected to have a positive earnings effect of approximately $.05 per diluted share. Earnings guidance both for the fourth quarter and fiscal year reflects this impact.

During the month of December, the Company opened three new stores and closed eight stores. The new stores were in Indian Trail, NC and Edinburg and San Antonio, TX.

As of December 30, 2006, the Company operated 1,273 stores in 31 states, compared to 1,234 stores in 31 states as of December 31, 2005.

The Cato Corporation

More Cato Corporation News... More Fashion News - United States Of America...