Cato reported net income of $6.1 million ($0.21 Diluted EPS) for the third quarter ended Oct 29, an increase of 4% from the year-ago period. Net sales declined 2.1% to $194.1 million, while same-store sales fell 3%. “Our third quarter same-store sales decrease reflects the continuing difficult economic situation facing our customers,” stated John Cato, Chairman, President, and Chief Executive Officer. “During the quarter, we maintained merchandise margin and controlled costs while benefiting from lower accrued incentive compensation. However, due to our current same-store sales trend, we now expect fourth quarter earnings per diluted share will be at the lower end of our original guidance of $0.32 to $0.35 versus $0.37 last year, as restated. For the year, earnings per diluted share are estimated to be in the range of $2.18 to $2.21 vs. $2.00 last year, as restated, an increase of 9% to 11%.”
