Cato profit up in Q3

Charlotte, N.C. The Cato Corp. reported Thursday its profit for the third quarter was $3 million, compared with $800,000 for the year-ago period.

Sales for the third quarter ended Oct. 31 were $191.0 million, a 6% increase over sales of $179.8 million for the third quarter ended Nov. 1, 2008. Same-store sales for the quarter increased 4%.

"We had an unexpectedly strong quarter," stated John Cato, president and CEO. "However, we recognize that much uncertainty still exists for our customers in this economic environment. Due to this uncertainty, we continue to estimate that same-store sales for the fourth quarter will be in the range of down 3% to flat.”

Year-to-date, the company has opened 26 new stores, relocated one store, and closed 16 stores, 10 of which were conversions of It's Fashion stores to It's Fashion Metro stores. The company said it now expects to open approximately 36 stores during 2009 as compared with its previous guidance of 46 stores.

As of Oct. 31, Cato operated 1,291 stores in 31 states, compared with 1,305 stores in 31 states as of Nov. 1, 2008.