Cato's May Comps Fall 2%

Discount fashion retailer continues to struggle to find sales growth.

By Rich Duprey – Jun 6, 2013 at 12:08PM EST

Discount fashion retailer Cato (CATO 0.66%) reported this morning that May sales wilted.

For the four weeks ending June 1, total sales were $81.7 million, a 3% drop from the $84.3 million it recorded in the year-ago period. That translated into a same-store sales decline of 2% for May.

Cato CEO John Cato said the month "continued to be difficult although better than our current trend." For the 17-week period ending June 1, sales declined 2% to $348.9 million, compared to $357.1 million last year, while the retailer's year-to-date comps were down 4%.

Headquartered in Charlotte, N.C., Cato operates 1,307 stores in 31 states. It recorded sales of $938.4 million in the trailing-12-month period ending May 4.

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Rich has been a Fool since 1998 and writing for the site since 2004. After 20 years of patrolling the mean streets of suburbia, he hung up his badge and gun to take up a pen full time. Having made the streets safe for Truth, Justice, and Krispy Kreme donuts, he now patrols the markets looking for companies he can lock up as long-term holdings in a portfolio. His coverage reflects his passion for motorcycles, booze, and guns (though not enjoyed all at the same time...usually), but his writing also covers the broader sectors of consumer goods, technology, and industrials. So follow along as he tries to break down complex topics to make them more understandable and useful to the average investor. Have a story idea? Contact Rich here. I may not be able to respond to every suggestion, but I do read them all! Does an article needs a correction? Reach Rich here.

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Cato's May Comps Fall 2%

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