Cato Reports January Same-Store Sales Down 7%
Lowers 4Q and Full Year EPS Estimate
CHARLOTTE, N.C., Feb. 4, 2016 /PRNewswire/ -- The Cato Corporation (NYSE: CATO) today reported sales of $52.9 million for the four weeks ended January 30, 2016, a decrease of 4% from sales of $54.9 million for the four weeks ended January 31, 2015. Same-store sales for the month decreased 7% from last year.
Sales for fiscal fourth quarter ended January 30, 2016 were $247.3 million, an increase of 4% from sales of $237.8 million for the fourth quarter ended January 31, 2015. For the quarter, same-store sales increased 1% from last year. For the year, the Company's sales increased 2% to $1,001.4 million from 2014 sales of $977.9 million. For the year, same-store sales were flat to last year.
"January same-store sales results were significantly impacted by adverse weather," stated John Cato, Chairman, President, and Chief Executive Officer. "Due to the affect of the adverse weather and increased costs, primarily related to higher medical expenses, we now expect fourth quarter EPS results will be within the range of $.32 to $.36 versus our previous guidance of $0.39 to $0.43 versus $0.33 last year. The Company's estimate for full year earnings per diluted share is now in the range of $2.28 to $2.32 versus our most recent guidance of $2.35 to $2.39 versus $2.15 last year."
The Company will release fourth quarter and fiscal year 2015 earnings on Thursday, March 17, 2016.
During January, the Company relocated two stores. During the fourth quarter, the Company opened three stores, relocated three stores and closed one store. For the fiscal year ended January 30, 2016, the Company opened 31 stores, relocated eleven stores and closed five stores. As of January 30, 2016, the Company operated 1,372 stores in 32 states, compared to 1,346 stores in 32 states as of January 31, 2015.
The Cato Corporation is a leading specialty retailer of value-priced fashion apparel and accessories operating three concepts, "Cato", "Versona" and "It's Fashion". The Company's Cato stores offer exclusive merchandise with fashion and quality comparable to mall specialty stores at low prices every day. The Company also offers exclusive merchandise found in its Cato stores at www.catofashions.com. Versona is a unique fashion destination offering apparel and accessories including jewelry, handbags and shoes at exceptional prices every day. Select Versona merchandise can also be found at www.shopversona.com. It's Fashion offers fashion with a focus on the latest trendy styles for the entire family at low prices every day. Additional information on The Cato Corporation is available at www.catocorp.com.
Statements in this press release not historical in nature including, without limitation, statements regarding the Company's expected or estimated financial results are considered "forward-looking" within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations that are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those contemplated by the forward-looking statements. Such factors include, but are not limited to, the following: general economic conditions; competitive factors and pricing pressures; the Company's ability to predict fashion trends; consumer apparel buying patterns; adverse weather conditions and inventory risks due to shifts in market demand and other factors discussed under "Risk Factors" in Part I, Item 1A of the Company's most recently filed annual report on Form 10-K and in other reports the Company files with or furnishes to the SEC from time to time. The Company does not undertake to publicly update or revise the forward-looking statements even if experience or future changes make it clear that the projected results expressed or implied therein will not be realized. The Company is not responsible for any changes made to this press release by wire or Internet services.
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SOURCE The Cato Corporation