Cato Corp. July Comps. Down 10%; Updates Q2 EPS Guidance - Quick Facts

(RTTNews) - The Cato Corp. (CATO) reported sales of $61.2 million for the four weeks ended July 30, 2016, down 8% from sales of $66.9 million for the four weeks ended August 1, 2015. Same-store sales for the month were down 10%. Second-quarter sales were $236.7 million, down 5% to sales of $249.2 million for the second quarter ended August 1, 2015. Second quarter same-store sales were down 6%.

"July same-store sales were well below our expectations," said John Cato, CEO.

Cato Corp. now expects second-quarter earnings will be in the range of $0.52 to $0.55, a decrease of 7% to 2% from prior year. The company said the decrease in earnings due to lower sales is offset by favorable adjustments to the effective tax rate as a result of continuing tax initiatives.