Cato Reports February Comp Store Sales up 8%

CHARLOTTE, N.C., March 5 /PRNewswire-FirstCall/ — The Cato Corporation (NYSE: CTR) today reported sales for the four weeks ended February 28, 2009 of $74.7 million, an 11% increase over sales of $67.2 million for the four week period ended March 1, 2008. Comparable store sales for the month were up 8% over the prior year.

“February’s warm weather drove comparable store sales above our recent trend,” stated John Cato, Chairman, President, and Chief Executive Officer. “Inventory is fresh and in line with our expectations of flat to low single digit negative comparable store sales for the remainder of first quarter 2009.”

The Company opened a store in West Memphis, AR in February. As of February 28, 2009, the Company operated 1,282 stores in 31 states, compared to 1,321 stores in 32 states as of March 1, 2008.

The Cato Corporation is a leading specialty retailer of value-priced women’s fashion apparel operating two divisions, “Cato” and “It’s Fashion”. The Company’s Cato division offers exclusive merchandise with fashion and quality comparable to mall specialty stores at low prices every day. The It’s Fashion division offers fashion with a focus on the latest trendy styles and nationally recognized urban brands for the entire family at low prices every day. Additional information on The Cato Corporation is available at www.catocorp.com.

Statements in this press release not historical in nature including, without limitation, statements regarding the Company’s expected or estimated financial results, including comparable store sales for first quarter 2009, are considered “forward-looking” within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations that are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those contemplated by the forward-looking statements. Such factors include, but are not limited to, the following: general economic conditions; competitive factors and pricing pressures; the Company’s ability to predict fashion trends; consumer apparel buying patterns; adverse weather conditions and inventory risks due to shifts in market demand and other factors discussed under “Risk Factors” in Part I, Item 1A of the Company’s most recently filed annual report on Form 10-K, as amended or supplemented, and in other reports the Company files with or furnishes to the SEC from time to time. The Company does not undertake to publicly update or revise the forward-looking statements even if experience or future changes make it clear that the projected results expressed or implied therein will not be realized. The Company is not responsible for any changes made to this press release by wire or Internet services.

SOURCE The Cato Corporation