CHARLOTTE, N.C., July 6, 2017 /PRNewswire/ -- The Cato
Corporation (NYSE: CATO) today reported sales of $74.7 million for the five weeks ended
July 1, 2017, which were down 15%
versus sales of $88.0 million for the
five weeks ended July 2, 2016.
Same-store sales for the five-week period were down 16% to last
year.
Sales for the twenty-two weeks ended July
1, 2017 were $386.5 million,
down 16% over sales of $460.9 million
for the twenty-two weeks ended July
2, 2016. The Company's year-to-date same-store sales
decreased 16%.
"Our negative sales trends persisted in June and the decline in
sales continues to put severe pressure on merchandise margins and
profitability. Second quarter and full year earnings will be
significantly below last year," commented John Cato, Chairman, President, and Chief
Executive Officer.
During the month of June, the Company opened one store in Lake
City, FL. As of July 1, 2017,
the Company operated 1,374 stores in 33 states, compared to 1,373
stores in 33 states as of July 2,
2016.
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.
The Company also offers exclusive merchandise found in its Cato
stores at www.catofashions.com. Versona is a unique fashion
destination offering apparel and accessories including jewelry,
handbags and shoes at exceptional prices every day. Select
Versona merchandise can also be found at www.shopversona.com.
It's Fashion offers fashion with a focus on the latest trendy
styles for the entire family at low prices every day.
Statements in this press release not historical in nature
including, without limitation, statements regarding the Company's
expected or estimated operational and financial results 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: any
actual or perceived deterioration in the conditions that drive
consumer confidence and spending, including, but not limited to,
levels of unemployment, fuel, energy and food costs, wage rates,
tax rates, home values, consumer net worth and the availability of
credit; uncertainties regarding the impact of any governmental
responses to the foregoing conditions; competitive factors and
pricing pressures; our ability to predict and respond to rapidly
changing fashion trends and consumer demands; adverse weather or
similar conditions that may affect our sales or operations;
inventory risks due to shifts in market demand, including the
ability to liquidate excess inventory at anticipated margins; and
other factors discussed under "Risk Factors" in Part I,
Item 1A of the Company's most recently filed annual report on Form
10-K and in other reports the Company files with or furnishes to
the SEC from time to time. 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.
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SOURCE The Cato Corporation