Cato Reports April Comp Sales Up 5%

CHARLOTTE, N.C., May. 08 /PRNewswire/ --

CHARLOTTE, N.C., May 8 /PRNewswire-FirstCall/ -- The Cato Corporation today reported sales of $69.4 million for the four weeks ended May 3, 2008, an 8% increase over sales of $64.2 million for the four weeks ended May 5, 2007. Comparable store sales for the month increased 5%.

Sales for the first quarter ended May 3, 2008 were $225.8 million, a 1% increase over sales of $224.1 million for the first quarter ended May 5, 2007. Comparable store sales decreased 2% for the first quarter.

Because of the Easter shift, the best measure for year over year performance for March and April is the combined sales for the two months, which decreased 1% overall and decreased 3% on a comparable store basis.

"Combined March and April sales benefited from favorable weather comparisons to the prior year," said John Cato, Chairman, President, and Chief Executive Officer. "We now estimate first quarter earnings per diluted share will be in the range of $0.58 to $0.61 versus $0.59 last year. Our earnings estimate for the quarter reflects the benefit of reduced markdowns. We continue to expect our business to be difficult for the foreseeable future with comparable store sales in the range of flat to down 3%. We remain comfortable with our previous guidance for the remainder of the year."

During the month of April, the Company opened nine new stores and closed three stores. New stores opened in Chipley, FL, LaGrange, GA, Belleville, IL, Baker and Port Allen, LA, Southhaven, MS, Mount Olive, NC, and Bay City and Houston, TX. As of May 3, 2008, the Company operated 1,326 stores in 32 states, compared to 1,286 stores in 31 states as of May 5, 2007.

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 updated fashion and quality comparable to mall specialty stores 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, without limitation, statements regarding the Company's expected financial results for the first quarter and year, 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.