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Cato to anticipate Q2 EPS to be higher than previous estimate

05 Aug '05

2 min read

Women's apparel retailer The Cato Corporation reported sales of $56.8 million for the four weeks ended July 30, 2005, a 2 percent increase over sales of $55.5 million for the four weeks ended July 31, 2004. Comparable store sales for the month decreased 4 percent.

Sales for the second quarter ended July 30, 2005 were $208.3 million, a 6 percent increase over sales of $197.1 million for the second quarter ended July 31, 2004. The Company's second quarter comparable store sales were flat to the prior year.

Sales for the first half were $423.4 million, a 5 percent increase over 2004 first half sales of $402.2 million. Comparable store sales for the first half were flat to the prior year.

"July sales were negatively impacted by lower clearance sales than last year," commented John Cato, Chairman, President, and Chief Executive Officer. "For the quarter, better sell throughs of regular priced merchandise and lower markdowns resulted in improved merchandise margins."

"They now estimate second quarter earnings per diluted share to be in the range of $.30 to $.31 versus $.26 last year, an increase of 15 percent to 19 percent. This compares to their previous estimate of $.27 to $.28."

The Company will release second quarter results on Tuesday, August 16, 2005.

During the month of July, the Company opened two new stores in Attala, AL, and New Orleans, Louisiana.

During the first half, the Company opened 27 new stores, relocated seven stores, and closed seven stores. As of July 30, 2005, The Cato Corporation operated 1,197 stores in 31 states, compared to 1,132 stores in 28 states as of July 31, 2004.

North Carolina based The Cato Corporation is a specialty retailer of value-priced women's fashion apparel operating two divisions, "Cato" and "It's Fashion!". The Company primarily offers exclusive merchandise with fashion and quality comparable to mall specialty stores at low prices, every day.

The Cato Corporation

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