Cato's June Comps Improve Marginally

Zacks

Charlotte, N.C.-based retailer of apparel and accessories for women, Cato Corporation (CATO) reported a 1% rise in comparable-store sales (comps) for the 5-week period ended Jul 6, 2013. This compares favorably with a 10% decline in comps reported in Jun 2012. Net sales for June increased 3% to $86.1 million from $83.7 million in the year-ago period.

Of late, Cato’s comps have been plummeting, with its collections failing to attract customers. The company’s trailing 5 months’ performance shows comps to have fallen every month, with the exception of April when it rose 1%.

The improvement in comps and sales for June mainly came from favorable customer response to the company’s clearance of summer assortments to make room for back-to-school merchandise.

For the 22-week period ended Jul 6, 2013, Cato’s sales dropped 1% to $435.0 million, compared with $440.8 million during the same time period ending Jun 30, 2012. Comps for the 22-week period in 2013 slid 3% from the comparable year-ago period.

Recently, 3 other retailers, Zumiez Inc. (ZUMZ),Costco Wholesale Corp. (COST) and Stein Mart Inc. (SMRT) reported comparable-store sales increase of 1%, 6% and 6.5%, respectively for the month of June.

Along with the June sales results, Cato reaffirmed second-quarter fiscal 2013 earnings guidance range of 42–48 cents per share compared with earnings of 59 cents in the year-ago comparable quarter.

Furthermore, the company revealed the opening of 1 store in Alpharetta, Ga., and relocation of 2 stores in Knoxville, Tenn. and Midland, Texas during the month of June. Cato also shut down 2 stores. Therefore, as of Jul 6, 2013, Cato had 1,306 stores in 31 states.

Read the Full Research Report on CATO

Read the Full Research Report on ZUMZ

Read the Full Research Report on COST

Read the Full Research Report on SMRT

Zacks Investment Research



More From Zacks.com

Rates

View Comments (0)