Cato Reports May Same-Store Sales Down 3%

CHARLOTTE, N.C., June 2, 2011 /PRNewswire/ -- The Cato Corporation (NYSE: CATO) today reported sales of $80.7 million for the four weeks ended May 28, 2011, flat to sales of $80.7 million for the four weeks ended May 29, 2010. Same-store sales for the month decreased 3%.

Sales for the seventeen weeks ended May 28, 2011 were $351.7 million, a 4% increase over sales of $339.8 million for the seventeen weeks ended May 29, 2010. The Company's year-to-date same-store sales increased 1%.

"May same-store sales were below expectations and we remain cautious given the continuing economic uncertainty," stated John Cato, the Company's Chairman, President, and Chief Executive Officer.

During the month of May, the Company opened four new stores and closed two It's Fashion stores to open It's Fashion Metro stores in the same markets. New stores opened in Bartow, FL, Fruitland, MD, Senatobia, MS and Columbia, SC. As of May 28, 2011, the Company operated 1,284 stores in 31 states, compared to 1,273 stores in 31 states as of May 29, 2010.

The Cato Corporation is a leading specialty retailer of value-priced fashion apparel and accessories 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 statements regarding factors impacting June sales 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.

SOURCE Cato Corporation