Businessweek

The Cato Corporation reported sales results for the four weeks and first quarter ended May 4, 2013. For the four weeks, the company’s sales were $77.0 million, a 9% decrease from sales of $84.9 million for the four weeks ended April 28, 2012. Same-store sales increased 1% for the month. Sales for the first quarter ended May 4, 2013 were $267.2 million, a 2% decrease from sales of $272.8 million for the first quarter ended April 28, 2012. Same-store sales for the first quarter decreased 5%. The shift of Easter from early April last year to late March 2013 favorably impacted April sales, while March sales were unfavorably impacted. Because of this shift, the best measure for performance is the combined sales for the two months, which decreased 3% overall and were down 6% to the prior year on a same-store basis. The company now expects first quarter earnings per diluted share will be in the range of $1.02 to $1.04 versus $1.09 last year, a decrease of 6% to 5% from last year. During the month of April, the company opened two stores and relocated one store. New stores opened in Maplewood, MO and Wichita, KS and the relocated store was in Monroeville, AL. As of May 4, 2013, the company operated 1,307 stores in 31 states, compared to 1,293 stores in 31 states as of April 28, 2012.

The Cato Corporation reported sales results for the five weeks and nine weeks ended April 6, 2013. For the five weeks, the company’s sales were $105.6 million, a 2% increase over sales of $103.9 million for the five week period ended March 31, 2012. Same-store sales for the month decreased 11%. For the nine weeks, the company’s sales were $190.2 million, a 1% increase over sales of $187.9 million for the nine weeks ended March 31, 2012. The Company's year-to-date same-store sales were down 7% to the prior year.

The Cato Corporation reported unaudited consolidated earnings results for the fourth quarter and full year ended February 2, 2013. For the quarter, the company's total revenues were $234,636,000 against $224,307,000 a year ago. Income before income taxes was $13,231,000 against $15,604,000 a year ago. Net income was $7,944,000 or $0.27 basic and diluted per share against $10,105,000 or $0.35 basic and diluted per share a year ago. For the year, the company's total revenues were $944,048,000 against $931,458,000 a year ago. Income before income taxes was $98,971,000 against $100,271,000 a year ago. Net income was $61,668,000 or $2.11 basic and diluted per share against $64,834,000 or $2.21 basic and diluted per share a year ago. The company announced that it increased its dividend by an annualized amount of $0.20, a 20% increase over the annualized dividend rate for 2012, exclusive of the special dividend and accelerated 2013. The company expects to open 65 new stores during the year 2013. The expected new store openings include 40 new Cato stores, 15 Versona Accessories stores, five Fashion stores and five Fashion Metro stores. The company anticipates closing up to 15 stores by year-end 2013, including the two it's Fashion store closings. At this time, only six specific stores have been identified for closure. The company estimates first quarter 2013 net income to be in a range of $30.3 million to $33.3 million, or $1.03 to $1.14 per diluted share, a decrease of 5% to an increase of 5% compared to $1.09 in first quarter 2012. This estimate is based on same-store sales of down 4% to down 2%. For 2013, the Company estimates same-store sales will be in a range of down 3% to down 1% and its gross margin rate will decrease to 37.1% from 37.7% in 2012, resulting in net income in a range of $48.1 million to $56.8 million, a decrease of 22% to 8% compared to $61.7 million in 2012. The Company estimates earnings per diluted share will be in a range of $1.64 to $1.93, a decrease of 22% to 9% compared to $2.11 in 2012. Capital expenditures are projected to be approximately $44 million, including $26 million for store development, $10 million for home office renovation and additional investment into the company's e-commerce initiative as well as continued investment to enhance and upgrade the company's existing systems. The anticipated Distribution Center expansion has been delayed past 2013 based on current needs. Depreciation is expected to be approximately $23 million for the year. The effective tax rate is expected to be approximately 35.7%.

The Cato Corporation announced that its Board of Directors declared a quarterly dividend of $0.05 per share. The dividend will be payable on March 25, 2013 to shareholders of record of the Corporation at the close of business on March 11, 2013. The $0.05 dividend, or $0.20 on an annualized basis, when coupled with the $1.00 dividend accelerated into December 2012, represents a 20% increase over the regular dividend paid last year.

The Cato Corporation reported sales results for the month of January 2013 and fourth quarter and full year ended February 2, 2013. The company reported sales of $63.8 million for the five weeks ended February 2, 2013, an increase of 26% over sales of $50.5 million for the four weeks ended January 28, 2012. On a comparable five-week basis, total sales for the month decreased 9% and comparable store sales decreased 12% from last year. Sales for fiscal fourth quarter ended February 2, 2013 were $232.0 million, an increase of 5% over sales of $221.5 million for the fourth quarter ended January 28, 2012. On a comparable 14-week basis, total sales for the quarter decreased 4% and comparable store sales decreased 7% from last year. For the year, the company's sales increased 1% to $933.8 million over 2011 sales of $920.6 million. On a comparable 53-week basis, total sales for the fiscal year ended February 2, 2013 decreased 1% and comparable store sales decreased 4% from last year. The company provided earnings guidance for the fourth quarter and full year ended February 2, 2013. The company expected fourth quarter EPS results will be in the range of $0.27 to $0.29 versus $0.35 last year. For the year, the company expected diluted earnings per share will be within the range of $2.11 to $2.13 versus $2.21 last year.