The Cato Corp. (CATO) shares were lower over 1% in recent pre-market trade after the fashion specialty retailer, reported that same store sales in the five weeks ended Sept. 30 fell 11% from a year ago.
Total sales of $69.8 million for the five weeks were down 8% from $76.2 million a year ago.
Sales for the 35 weeks ended Sept. 30 were $568.7 million, down 14% from $660.3 million and the year-to-date same-store sales decreased 14% from last year.
“Negative sales trends continue to put severe pressure on merchandise margins and profitability as we continue to work through our merchandise missteps,” said CEO John Cato. “It is taking longer to work through these issues than expected and we expect full year earnings to be significantly below last year.”
As of Sept. 30, Cato operated 1,369 stores, compared to 1,373 stores as of Oct. 1, 2016.