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Apparel retailer Cato reports Q1 comp sales down 5%
10 May '07
2 min read
The Cato Corporation reported sales of $64.2 million for the four weeks ended May 5, 2007, a 22% decrease from sales of $81.8 million for the four weeks ended April 29, 2006. Comparable store sales for the month decreased 21%.
Sales for the first quarter ended May 5, 2007 were $224.1 million, a 2% decrease from sales of $229.7 million for the first quarter ended April 29, 2006. Comparable store sales decreased 5% for the first quarter.
Because of the shift of Easter, the best measure for year over year performance for March and April is the combined sales for the two months, which decreased 4% overall and decreased 6% on a comparable store basis.
"The unseasonably cold weather we experienced prior to Easter continued into April and negatively impacted sales for both March and April," said John Cato, Chairman, President, and Chief Executive Officer.
"This was on top of a general weakness we continue to see in our business. Inventory levels are high in relation to current sales levels and will be managed through our normal markdown process. Because of weaker than anticipated sales and higher markdowns, we now estimate first quarter earnings per diluted share to be in the range of $.58 to $.60 versus $.65 last year, an 11% to 8% decrease."
During the month of April, the Company opened five new stores and relocated two stores. New stores opened in Chelsea and Moulton, AL, Columbus, OH, and two stores in Longview, TX. The relocated stores are in Lenoir and Mayodan, NC. As of May 5, 2007, the Company operated 1,286 stores in 31 states, compared to 1,252 stores in 31 states as of April 29, 2006.
Sales for the first quarter ended May 5, 2007 were $224.1 million, a 2% decrease from sales of $229.7 million for the first quarter ended April 29, 2006. Comparable store sales decreased 5% for the first quarter.
Because of the shift of Easter, the best measure for year over year performance for March and April is the combined sales for the two months, which decreased 4% overall and decreased 6% on a comparable store basis.
"The unseasonably cold weather we experienced prior to Easter continued into April and negatively impacted sales for both March and April," said John Cato, Chairman, President, and Chief Executive Officer.
"This was on top of a general weakness we continue to see in our business. Inventory levels are high in relation to current sales levels and will be managed through our normal markdown process. Because of weaker than anticipated sales and higher markdowns, we now estimate first quarter earnings per diluted share to be in the range of $.58 to $.60 versus $.65 last year, an 11% to 8% decrease."
During the month of April, the Company opened five new stores and relocated two stores. New stores opened in Chelsea and Moulton, AL, Columbus, OH, and two stores in Longview, TX. The relocated stores are in Lenoir and Mayodan, NC. As of May 5, 2007, the Company operated 1,286 stores in 31 states, compared to 1,252 stores in 31 states as of April 29, 2006.
The Cato Corporation
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