Charlotte, NC-based retailer of apparel and accessories for
) reported a 3% rise in comparable-store sales (comps) for the 4
weeks ended Nov 2, 2013, following a 3% decline in September
comps. Net sales for October rose 4% to $66.7 million from $64.3
million reported in the year-ago period. Cooler weather compared
to the prior year drove the rise in sales.
Of late, Cato's comps have been waning, as its collections are
failing to attract customers. Looking at the company's
performance in the first nine months of 2013, we note that comps
had fallen every month, except April and June, when it rose by 1%
For the third quarter of 2013 (13 weeks ended Nov 2, 2013),
Cato's sales inched up 1% to $198.8 million from $197.6 million
in the year-ago comparable quarter. However, comps declined 1% in
the said quarter.
On a year-to-date basis, Cato's sales inched down 1% to $695.3
million compared with $701.8 million during the same time period
in the prior year. Comps for the period slid 3% from the
comparable year-ago period.
Apart from Cato, other store chain retailers that posted
comparable-store sales data for the month of October include
The Buckle Inc.
). These companies registered comps growth of 2.6%, 4% and 1.2%,
Cato now expects its third-quarter fiscal 2013 earnings to range
from 13 to 15 cents per share, up from its prior forecast of
earnings at the higher end of 2-9 cents per share. This also
compares to earnings of 16 cents in the year-ago quarter.
Currently, the Zacks Consensus Estimate stands at 9 cents per
Further, the company forecasts a challenging sales environment in
the upcoming quarter.
In October, the company inaugurated 6 new outlets, 1 each in
Flint, Michigan; Lee's Summit, Missouri; Durham, North Carolina;
Norman, Oklahoma; Altoona, Pennsylvania; and Irving, Texas.
Additionally, the company relocated its store in Morganton, North
In the nine months of 2013, the company opened 16 new outlets,
relocated 4 stores, and closed 8 stores. As of Nov 2, 2013,
Cato had 1,318 stores in 32 states compared with 1,306 stores in
31 states as of Oct 27, 2012.
The company is expected to release third-quarter fiscal 2013
results on Nov 21, 2013.
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