CHARLOTTE, N.C., May 24 /PRNewswire-FirstCall/ -- The Cato Corporation held its Annual Shareholders Meeting on Thursday, May 24, 2007 at its corporate offices in Charlotte, NC.
In his address to shareholders, John Cato, Chairman, President, and Chief Executive Officer, highlighted the Company's 2006 performance, including a 15% increase in both net income and earnings per diluted share, and the opening of 58 new stores.
Mr. Cato discussed the success of the Cato private label noting, "Since we introduced the Cato label two years ago, customers have associated it with on- trend fashion, high quality, exclusive styling, consistent fit and exceptional value." He also discussed improvements and initiatives in the Company's product development function. Mr. Cato commented, "We have continued to leverage our direct sourcing to increase margins and improve the quality of our offering."
In reviewing the Company's outlook for 2007, Mr. Cato discussed the difficult economic environment facing consumers today and the fact that this will create a challenging year. Mr. Cato stated, "Regardless of the challenges we face this year, we will continue to focus on innovation and improvement to provide high quality, fashion and value to our customers, opportunity for growth to our associates and increasing value and return to our shareholders."
In a meeting of the Board of Directors prior to the Annual Meeting, the Board increased the Company's dividend to $0.66 on an annualized basis, a 10% increase. This follows a 15% increase in May 2006.
During the Annual Meeting, shareholders approved the re-election of three Board members, George S. Currin, A.F. "Pete" Sloan, and D. Harding Stowe. Shareholders also ratified the selection of PricewaterhouseCoopers LLP as the Company's independent registered public accounting firm for fiscal 2007.
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 offers exclusive merchandise with fashion and quality comparable to mall specialty stores at low prices, everyday. As of May 5, 2007, the Company operated 1,286 stores in 31 states, compared to 1,252 stores in 31 states as of April 29, 2006. Additional information on The Cato Corporation is available at http://www.catocorp.com/.
Statements in this press release not historical in nature including, without limitation, statements regarding the Company's expected financial results 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. Additional information concerning these and other important factors can be found in Item 1A. "Risk Factors" of the Company's most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission. 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.
