Charlotte, N.C.-based retailer of apparel and accessories for
) 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
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,
Costco Wholesale Corp.
Stein Mart Inc.
) 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
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.
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