CHARLOTTE, N.C., Feb. 8 /-/ -- The Cato Corporation (NYSE: CTR) today reported sales of $69.3 million for the five weeks ended February 3, 2007 as compared to sales of $54.2 million for the four-week period ended January 28, 2006, an increase of 28%. The fiscal year ended February 3, 2007 contains 53 weeks versus 52 weeks in fiscal year ended January 28, 2006. January 2007 contains five weeks versus four weeks in January 2006. On a comparable five-week basis, total sales for the month decreased 5% and comparable store sales decreased 7% from last year.
Sales for fiscal fourth quarter ended February 3, 2007 were $230.7 million as compared to sales of $220.5 million for the fourth quarter ended January 28, 2006, an increase of 5%. On a comparable 14-week basis, total sales for the quarter decreased 3%, and comparable store sales decreased 6% from last year. The Company's sales for fiscal 2006 were $862.8 million as compared to fiscal 2005 sales of $821.6 million, a 5% increase. On a comparable 53-week basis, total sales for the fiscal year ended February 3, 2007 increased 3% and comparable store sales decreased 2% from last year.
"January sales continued to be primarily impacted by a general weakness in our business and, to a lesser extent, weather and unfavorable comparisons to last year due to hurricane relief spending," commented John Cato, Chairman, President, and Chief Executive Officer. "We remain comfortable with our previous guidance of estimated fourth quarter earnings per diluted share in a range of $.34 to $.36 versus $.37 last year. The estimated range includes $0.02 for hurricane-related insurance claims resolved in January. For the year, we maintain our guidance of estimated earnings per diluted share in the range of $1.56 to $1.57 versus $1.41 last year, an increase of approximately 11%. We continue to estimate the positive earnings effect of the 53rd week to be approximately $.05 per diluted share. The effect of the 53rd week in 2006 will reduce 2007 earnings growth to below historical averages."
The Company will release fourth quarter and fiscal year 2006 earnings on Thursday, March 22, 2007.
During January, the Company opened nine stores, relocated three stores and closed six stores. New stores opened in Gardendale, Mobile and Russellville, AL, Smyrna, GA, Eunice, LA (two stores), Boiling Springs, SC, El Campo, TX, and Richmond, VA. The relocated stores are in Washington, IN, Jackson, TN, and College Station, TX.
The Company had two stores that were damaged by 2005 hurricanes and had been closed since September 2005. The Company now considers these stores permanently closed.
During the fourth quarter, the Company opened 20 stores, relocated five stores, and closed 14 stores. For the fiscal year ended February 3, 2007, the Company opened 58 stores, relocated 20 stores and closed 26 stores. As of February 3, 2007, the Company operated 1,276 stores in 31 states, compared to 1,244 stores in 31 states as of January 28, 2006.
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 offers exclusive merchandise with fashion and quality comparable to mall specialty stores at low prices, every day. Additional information on The Cato Corporation is available at http://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 fourth quarter and full year of 2006, 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. 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.
