Cato posts 12 percent decline in December sales

The Cato Corporation’s sales for the five weeks ended December 31, 2016 of 104.4 million dollars were down 12 percent from sales of 118.5 million dollars for the five weeks ended January 2, 2016. Same-store sales decreased 12 percent.

"December same-store sales results were unfortunately consistent with our recent trend," stated John Cato, Chairman, President, and CEO in a company statement, adding, "We now expect that fourth quarter earnings per diluted share will be a loss of 0.50 dollars to 0.54 dollars, versus our previous guidance of a loss of 0.07 dollar to 0.11 dollar versus 0.42 dollar last year. The company's estimate for full year earnings per diluted share is now in the range of 1.66 dollars to 1.70 dollars versus our most recent guidance of 2.08 dollars to 2.12 dollars and 2.39 dollars last year."

Sales for the eleven months were 901.8 million dollars, a 5 percent decrease from sales of 948.5 million dollars for the same period ended January 2, 2016. The company's year-to-date same-store sales decreased 6 percent to last year.

The company closed six stores during December. As of December 31, 2016, the company operated 1,368 stores in 33 states, compared to 1,372 stores in 32 states as of January 2, 2016.

Picture:Cato Fashions