Cato Reports April Same-Store Sales Down 6%; Reaffirms 1Q EPS Estimate

The Cato Corporation

today reported sales of $84.9 million for the four weeks ended April 28, 2012, a 3% decrease from sales of $87.3 million for the four weeks ended April 30, 2011. Same-store sales decreased 6% for the month. Sales for the first quarter ended April 28, 2012 were $272.8 million, a 1% increase over sales of $270.9 million for the first quarter ended April 30, 2011. Same-store sales for the first quarter decreased 2%. April sales were unfavorably impacted by the shift of a portion of Easter sales to March this year versus April last year, while March sales were favorably impacted. Because of this shift, the best measure for performance is the combined sales for the two months, which increased 2% overall and were flat to the prior year on a same store basis. "April sales and the combined sales for March and April were in line with expectations," stated John Cato, Chairman, President, and Chief Executive Officer. "We continue to expect first quarter earnings per diluted share will be in the range of $1.04 to $1.09 versus $1.04 last year, flat to an increase of 5% over last year."