Published
Feb 8, 2018
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Cato reports slip in January same-store sales, updates Q4 and full year guidance

Published
Feb 8, 2018

The Cato Corporation saw a 6% decrease in January same-store sales on a comparable five-week basis, while total sales fell by 5%.


The retailer has struggled with an increasingly challenging retail environment - Instagram: @catofashions

 
The fiscal year ended February 3, 2018 counts 53 rather than 52 weeks, adding an extra week to January 2018. Sales for the five-week period ended February 3, 2018 hit $54.2 million, a 19% increase from the $45.5 million reported for the four-week period ended January 28, 2017.

Q4 sales for the period ended February 3, 2018 were $211.1 million, falling 3% from the $218.2 million reported for the fourth quarter ended January 28, 2017. On a comparable 14-week basis, both total sales and comparable store sales decreased by 8% from last year.

Full year sales were down by 11%, from $947.4 million to $842.1 million, while both total and comparable store sales fell by 12% on a comparable 53-week basis.
 
John Cato, Chairman, President and CEO of Cato, stated in a release, “The January same store sales decline is consistent with our recent trend,” going on to say, “Based on further clarification from the FASB regarding the required adjustments due to the implementation of the “Tax Cuts and Jobs Act of 2017”,we have updated our guidance for 2017.  We now expect the fourth quarter earnings to be a loss of between $.55 and $.65 versus a loss of $.48 last year.”
 
Cato also clarified that “The Company's estimate for full year earnings per diluted share is in the range of $.30 to $.40 versus $1.72 last year.”
 
The Cato Corporation is a specialty value-priced fashion apparel and accessories retailer, operating through three concepts: Cato, Versona and It’s Fashion.
 
The Charlotte, NC-based retailer currently runs 1,351 stores in 33 states, compared to the 1,371 stores it operated at this time last year. Along with many of its peers, the company has struggled in recent months with an increasingly challenging retail environment as consumer preference shifts towards e-commerce.
 
Cato plans to report fourth quarter and fiscal year 2017 earnings on Thursday, March 22, 2018.

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