Cato 3Q profit more than triples as sales rise

AP News
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Posted: Nov 19, 2009 1:29 PM

Cato Corp., which sells low-priced women's clothes at stores in the southern U.S., said Thursday its profit more than tripled in the third quarter as its sales rose.

The retailer, based in Charlotte, N.C., earned $3 million, or 10 cents per share, in the quarter that ended Oct. 31. That compares with profit of $823,000, or 3 cents per share, a year earlier.

Cato's mall-based stores include Cato and It's Fashion.

Revenue rose 6 percent to $193.8 million from $182.8 million.

Sales at stores open at least a year rose 4 percent during the quarter. That figure is considered a key measure of retailer performance because it measures growth at existing stores and excludes those that open or close during the year.

For the full year, Cato expects profit in a range of $1.38 to $1.43 per share. It earned $1.14 per share last year.

The company predicts fourth-quarter profit in a range of 8 cents to 13 cents per share. It earned 13 cents per share last year.