CHARLOTTE, N.C., May 20 /PRNewswire-FirstCall/ -- The Cato Corporation held its Annual Shareholders' Meeting on Wednesday, May 20, 2009 at its corporate offices in Charlotte, NC.
John Cato, Chairman, President, and Chief Executive Officer, commented on the Company's performance in 2008 of increasing earnings per share 12% and net income 4% in a difficult economic environment in which a significant number of retailers closed stores, entered bankruptcy or liquidated. Mr. Cato noted that through various economic cycles over the past decade, Cato has delivered at least $30 million in net income in every year with good profit margins.
Mr. Cato stated that the Company's performance reflected customers' response to Cato's merchandise and their acceptance of the Cato brand. He also commented that 2008 results were positively impacted by steps the Company took early last year including reducing overhead costs, limiting technology investments to only essential projects and tightly controlling inventory levels. "These actions laid the groundwork for success in 2008 and have positioned us well for 2009," stated Mr. Cato.
Mr. Cato discussed the Company's 2009 growth plans including that the Company continues to believe both the Cato and It's fashion divisions provide growth opportunities for the future. He added the Company expects to open 13 new Cato stores and 33 new It's Fashion Metro stores this year. Regarding the It's Fashion Metro concept, Mr. Cato noted, "Our It's Fashion Metro concept is a value priced fashion format offering both the latest styles and urban brands for the entire family - all at everyday low prices." Mr. Cato also stated, "The Metro concept has been well received by our customers. We are using their feedback to enhance our merchandise offering and their store experience." The Company ended 2008 with 32 Metro stores.
Mr. Cato discussed 2009 initiatives in store operations and support functions to help deliver profitable growth. He also commented on the Company's continuing focus on its core strategies to deliver profitable growth and long-term value to its shareholders and deliver fashion and value to its customers.
In a meeting of the Board of Directors prior to the Annual Meeting, the Board held the Company's dividend at $0.66 on an annualized basis. The current dividend represents a yield of 3.4% based on the May 20 closing price.
During the Annual Meeting, shareholders re-elected John P.D. Cato for a three-year term ending in 2012. Shareholders elected new directors Bailey W. Patrick and Thomas E. Meckley to three-year terms also ending in 2012. Shareholders also ratified the selection of PricewaterhouseCoopers LLP as the Company's independent registered public accounting firm for fiscal 2009.
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's Cato division offers exclusive merchandise with fashion and quality comparable to mall specialty stores at low prices every day. The It's Fashion division offers fashion with a focus on the latest trendy styles and nationally recognized urban brands for the entire family at low prices every day. As of May 2, 2009, the Company operated 1,285 stores in 31 states. 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, including store growth plans, 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.
The Cato Corporation
CONTACT: John R. Howe, Executive Vice President, Chief Financial
Officer, The Cato Corporation, +1-704-551-7315
Web Site: http://www.catocorp.com/
