CHARLOTTE, N.C., May 23 /PRNewswire-FirstCall/ -- The Cato Corporation (NYSE:CTR) held its Annual Shareholders' Meeting on Thursday, May 22, 2008 at its corporate offices in Charlotte, NC.
John Cato, Chairman, President, and Chief Executive Officer, highlighted the Company's 2007 performance in an address to shareholders. Mr. Cato commented on the challenging economic environment the Company faced during the year, resulting in a decrease in net income and earnings per share. He also noted, however, that Cato remained profitable and that shareholders received a 10% increase in their dividend in 2007. The Company further increased shareholder value by repurchasing over 3 million shares last year.
Mr. Cato discussed the Company's growth plans including adding 40 new Cato stores and 30 new It's Fashion stores this year. Speaking specifically about the It's Fashion division, Mr. Cato noted, "Our plans for this year are to accelerate It's Fashion store openings primarily through the development of our It's Fashion Metro concept." The concept is an expanded version of the It's Fashion store. Mr. Cato also stated, "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." In reviewing the Company's outlook for 2008 Mr. Cato noted initiatives in store development, store operations and support functions to help deliver profitable growth. Mr. Cato also stated, "Given the ongoing economic situation, the Company has made necessary changes to its infrastructure to limit overhead growth to critical areas and will continue to tightly manage expenses." He further commented, "With the current economic environment, it is important that we stay focused on executing our business plans to deliver profitable growth. We have the concepts to grow our business, the merchandise and stores to deliver value to our customers, and, most importantly, the people to make it happen." 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 4.3% based on the May 22 closing price.
During the Annual Meeting, shareholders re-elected two Board members, Robert W. Bradshaw, Jr. and Grant L. Hamrick for three-year terms ending in 2011. Shareholders also ratified the selection of PricewaterhouseCoopers LLP as the Company's independent registered public accounting firm for fiscal 2008 and approved the Company's Amended and Restated 2004 Incentive Compensation Plan.
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 3, 2008, the Company operated 1,326 stores in 32 states, compared to 1,286 stores in 31 states as of May 5, 2007. 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. DATASOURCE: The Cato Corporation CONTACT: Stuart L. Uselton, Executive Vice President, Chief Administrative Officer of The Cato Corporation, +1-704-940-7832 Web site: http://www.catocorp.com/
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