Cato Reports July Same-Store Sales Down 10%
Updates 2Q EPS Guidance
CHARLOTTE, N.C., Aug. 4, 2016 /PRNewswire/ -- The Cato Corporation (NYSE: CATO) today reported sales of $61.2 million for the four weeks ended July 30, 2016, down 8% to sales of $66.9 million for the four weeks ended August 1, 2015. Same-store sales for the month were down 10% to the prior year.
Sales for the second quarter ended July 30, 2016 were $236.7 million, down 5% to sales of $249.2 million for the second quarter ended August 1, 2015. Second quarter same-store sales were down 6% to prior year.
Sales for the first half were $522.2 million, down 2% to the prior year's first half sales of $530.8 million. Same-store sales for the first half were down 3% to the prior year.
"July same-store sales were well below our expectations," commented John Cato, Chairman, President, and Chief Executive Officer. "We now expect first quarter earnings will be in the range of $.52 to $.55 versus $.56 last year, a decrease of 7% to 2%. The decrease in earnings due to lower sales is offset by favorable adjustments to the effective tax rate as a result of continuing tax initiatives."
The Company will release second quarter results on Thursday, August 18, 2016.
As of July 30, 2016, The Cato Corporation operated 1,373 stores in 33 states, compared to 1,358 stores in 32 states as of August 1, 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