Cato profit up 12% in Q1

Charlotte, N.C. Cato Corp. said Wednesday its first-quarter profit rose 12% as the company used markdowns to lure cash-strapped shoppers amid the struggling economy.

The company earned $18.8 million in the quarter that ended May 2, compared with $16.9 million a year earlier.

Revenue rose 5% to $241 million, up from $228.8 million, while same-store sales rose 3% during the quarter.