Last week, Charlotte, NC-based retailer of apparel and
accessories for women,
) posted yet another month of improved comparable-store sales
(comps) performance for the 4 weeks ended Aug 2, 2014. Comps for
the period registered growth of 4%.
Further, for the 4-week period, Cato reported a year-over-year
increase of 6% in total sales, which came in at $65.3 million
versus sales of $61.6 million registered for the 4-week period
ended Aug 3, 2013. The company's key retail metrics came in line
with the year-to-date trend.
Cato is not the only retailer which has registered a rise in its
sales performance last month. Other retailers such as Zumiez Inc. (
), Costco Wholesale Corp. (
) and L Brands, Inc. (
) have also witnessed increases of 3.5%, 5% and 6%, respectively,
in July comps. The improvement in July results was mostly
attributed to a rise in traffic probably due to the positive
economic factors like a better job scenario and consumer credit as
well as heavy promotions.
Now coming back to Cato, sales for the second quarter of fiscal
2014, ended on Aug 2, came in at $243.8 million, up 6% from $229.4
million of sales generated during the second quarter of the
previous fiscal ended Aug 3, 2013. Comps for the second quarter
witnessed growth of 3%.
For the year-to-date period, Cato's sales increased 6% year over
year to $526.2 million compared with $496.6 million in the year-ago
period. Comps for the period were 3% higher than the year-ago
Further, the company also provided earnings outlook for the
second quarter wherein it expects earnings to come in the range of
50 cents to 53 cents per share compared with 51 cents reported in
the year-ago comparable quarter. Currently, the Zacks Consensus
Estimate for the quarter is pegged at 51 cents per share.
Cato operated 1,328 stores across 32 states as of Aug 2, 2014
compared with 1,306 stores across 31 states as of Aug 3, 2013.
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