Charlotte, NC-based retailer of apparel and accessories for
) posted yet another month of improved comparable-store sales
(comps) performance for the 4 weeks ended May 31, 2014. Comps for
the period registered a growth of 3%.
Further, for the 4-week period, Cato reported a year-over-year
increase of 6% in total sales, which came in at $86.4 million
versus sales of $81.7 million registered for the 4-week period
ended Jun 1, 2013. We believe that the May retail sales have
benefited from warmer weather, huge promotional activities and
Memorial Day weekend which helped in boosting customer traffic.
Other retailers who have registered strong comps growth during
the month include
L Brands, Inc.
Costco Wholesale Corp.
) with comps growth of 3%, 3.6% and 6%, respectively.
Now coming back to Cato, the company reported a 6% increase in
sales to $368.9 million for the seventeen-week period ended May 31,
2014. Comps for the year-to-date period were up 3%.
During May the company expanded its store base with the opening
of 2 new stores in Winter Park, FL and Odessa, TX. On the other
hand, the company shut down 1 store in the month. As of May 31,
2014, this leading specialty retailer of women's fashion apparel
and accessories operated 1,325 stores across 32 states.
Recently, Cato released financial results for the first quarter
of fiscal 2014 wherein its sales improved 5.7% year over year to
$282.5 million while comparable-store sales (comps) climbed 3%.
Further, the company's earnings of $1.04 per share came in line
with the Zacks Consensus Estimate but slipped 1% year-over-year
mainly due to higher selling, general and administrative
In view of the impressive first quarter results, the company has
raised its earnings guidance range for fiscal 2014 to $1.66-$1.79
per share from $1.47-$1.66 projected earlier. However, Cato
reaffirms its comps guidance for the fiscal, which is expected to
remain flat or decrease by a maximum of 2%.
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