Cato Reports June Same-Store Sales Up 1%

The Cato Corporation CATO today reported sales of $90.4 million for the five weeks ended July 2, 2011, a 2% increase over sales of $88.2 million for the five weeks ended July 3, 2010. Same-store sales for the five-week period increased 1%. Sales for the twenty-two weeks ended July 2, 2011 were $442.0 million, a 3% increase over sales of $428.0 million for the twenty-two weeks ended July 3, 2010. The Company's year-to-date same-store sales increased 1%. "June same-store sales overall were slightly above expectations," stated John Cato, Chairman, President, and Chief Executive Officer. "However, same-store sales softened toward the end of the month compared to our year-to-date trend. We continue to expect second quarter earnings per diluted share will be in the range of $.57 to $.59, a 2% decrease to 2% increase compared to $.58 last year, as restated. As stated previously, we expect rising raw material and freight costs to have a negative effect on the Company's performance in the second half of 2011." During the month of June, the Company opened two new stores in Middleburg Heights, OH and Grand Rapids, MI. As of July 2, 2011, the Company operated 1,286 stores in 31 states, compared to 1,285 stores in 31 states as of July 3, 2010.