Cato Corporation (NYSE:CATO) Reports December Same-Store Sales Down 7%
Cato Corporation (NYSE:CATO) Reports December Same-Store Sales Down 7% Lowers 4Q EPS Guidance
The Cato Corporation (NYSE:CATO) today reported sales for the five weeks ended December 29, 2012 of $103.3 million, a 4% decrease from sales of $107.5 million for the five weeks ended December 31, 2011. Same-store sales for the month decreased 7%.
Sales for the eleven months ended December 29, 2012 were $870.0 million, flat to sales of $870.2 million for the eleven months ended December 31, 2011. The Company’s year-to-date same-store sales decreased 3%.
“December same-store sales results were well below expectations and our year-to-date trend,” commented John Cato , Chairman, President, and Chief Executive Officer. “We now expect that fourth quarter earnings per diluted share will be within the range of $0.34 to $0.36, versus our original guidance of $.38 to $.42 and $0.35 last year. The Company’s estimate for full year earnings per diluted share is now in the range of $2.17 to $2.19 vs. our most recent guidance of $2.22 to $2.26 and $2.21 last year.”
The Company’s earnings guidance for the fourth quarter and year now reflects the estimated tax benefit of the extension of the Work Opportunity Tax Credit by The American Taxpayer Relief Act of 2012.
Also, the Company’s fourth quarter 2012 includes 14 weeks compared to 13 weeks in 2011 and fiscal year 2012 includes 53 weeks compared to 52 weeks in 2011. Earnings guidance for both the fourth quarter and year reflects the impact of the additional week.
The Company closed one store during December. As of December 29, 2012, the Company operated 1,311 stores in 31 states, compared to 1,287 stores in 31 states as of December 31, 2011.
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. Versona is a unique fashion destination offering accessories and apparel including jewelry, handbags, and shoes at exceptional prices every day. It’s Fashion 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.
Heffernan Capital Management
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Shayne Heffernan Ph.D.
Economist/Hedge Fund Manager
Shayne Heffernan oversees the management of funds for institutions and high net worth individuals. He is also an active consultant working with Corporations around the World.
He is recognized as one of the leading Economists in South East Asia, as well as the preeminent authority on ASEAN. His opinions and forecasts are widely read by decision makers in the region and Internationally.
Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reached a peak of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.
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