Cato Reports September Comp Store Sales Down 3%

October 9, 2008 7:37 AM EDT

CHARLOTTE, N.C., Oct. 9 /PRNewswire-FirstCall/ -- The Cato Corporation (NYSE: CTR) today reported sales of $64.8 million for the five weeks ended October 4, 2008, a decrease of 2% from sales of $65.8 million for the five weeks ended October 6, 2007. Comparable store sales for the five-week period decreased 3% from the prior year.

Sales for the thirty-five weeks ended October 4, 2008 were $577.1 million, an increase of 2% from sales of $568.1 million for the thirty-five weeks ended October 6, 2007. The Company's year-to-date comparable store sales decreased 1%.

"September sales were negatively impacted by hurricanes in the gulf coast states early in the month but still reflect the continuing economic situation," stated John Cato, Chairman, President, and Chief Executive Officer. "Inventory is in line with our sales trend. We remain comfortable with our previous guidance of third quarter earnings per diluted share in the range of ($0.05) to $0.00 versus $0.09 last year."

During the month of September, the Company opened nine new stores, relocated one store, and closed four stores. New stores opened in Little Rock and Magnolia, AR, Cleveland, MS, Columbia, MO (2 stores), Kannapolis, NC, Madison, OH, San Angelo, TX, and Portsmouth, VA. The relocated store is in Dillon, SC. As of October 4, 2008, The Cato Corporation operated 1,297 stores in 31 states, compared to 1,309 stores in 31 states as of October 6, 2007.

The Cato Corporation is a leading specialty retailer of value-priced women's fashion apparel operating two divisions, "Cato" and "It's Fashion". The Company's Cato division offers exclusive merchandise with fashion and quality comparable to mall specialty stores at low prices every day. The It's Fashion division offers fashion with a focus on the latest trendy styles and nationally recognized urban brands 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 financial results for the third quarter 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. Additional information concerning these and other important factors can be found in Item 1A. "Risk Factors" of the Company's most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission. 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.

SOURCE The Cato Corporation

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