Cato Reports May Comp Store Sales Up 2%

CHARLOTTE, N.C., June 5 /PRNewswire-FirstCall/ -- The Cato Corporation today reported sales of $80.5 million for the four weeks ended May 31, 2008, a 6% increase over sales of $75.9 million for the four weeks ended June 2, 2007. Comparable store sales for the month increased 2%.

Sales for the seventeen weeks ended May 31, 2008 were $306.3 million, a 2% increase over sales of $300.1 million for the seventeen weeks ended June 2, 2007. The Company's year-to-date comparable store sales decreased 1%.

"May sales were better than expected," commented John Cato, the Company's Chairman, President, and Chief Executive Officer. "Our inventory remains in line with our sales trend. We remain cautious regarding the economic environment and its impact on our customer base."

During the month of May, the Company opened four new stores and closed one store. The new stores are in Talladega, AL, Chiefland, FL, Laurinburg, NC and Killeen, TX. As of May 31, 2008, the Company operated 1,329 stores in 32 states, compared to 1,290 stores in 31 states as of June 2, 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, every day. Additional information on The Cato Corporation is available at http://www.catocorp.com/.

Statements in this press release not historical in nature 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. 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.