The Cato Corporation (NYSE:
CTR) shares are up more than 15% today after the company announced ahead of the opening its June same-store sales rose 4% from a year ago, and the company lifted its second-quarter outlook. The Charlotte, N.C.-based women’s clothing retailer is raising its outlook for the second quarter to a profit of $0.42 to $0.44 per share, up from prior estimates of $0.28 to $0.33 a share. On average, analysts are expecting profits of $0.30 per share. The company said it was raising its second-quarter guidance because of better-than-expected sales in stores open more than a year. But the company also noted that the weak economy has put retail sales in a difficult position.
“We continue to manage inventory tightly and have experienced better sell-throughs of regular price and markdown merchandise,” said John Cato, chairman, president and CEO for The Cato Corporation.
In today’s trading, shares of The Cato Corporation are at $16.95, up $2.23 from Wednesday’s close.
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