Charlotte, NC-based retailer of apparel and accessories for women, Cato Corporation (CATO), posted yet another month of better-than-expected comparable-store sales (comps) for the 4 weeks ended Nov 29, 2014, registering an increase of 7%.
The company’s net sales for the month of November increased 10% to $73.8 million from $67.3 million posted last year.
The strong sales can be attributed to early deals for Thanksgiving and Black Friday coupled with low gas prices, which encouraged consumers to spend more liberally. Moreover, in November, Cato boosted sales by celebrating the first anniversary of its eCommerce website.
However, the company remains wary about the sales results in the upcoming holiday shopping season and through rest of the fourth quarter.
Last month, Cato reported 6% year-over-year increase in total sales for the 4 weeks ended Nov 1, 2014, which came in at $70.5 million versus sales of $66.7 million registered in the prior-year period. Comps for October were up 2%.
Cato is not the only retailer to register a rise in comps performance for November. Retailers like Gap Inc. (GPS), L Brands Inc. (LB) and Zumiez Inc. (ZUMZ) have also witnessed increase of 6%, 8% and 6.3%, respectively, in their November comps.
Now coming back to Cato, sales for the ten months ended Nov 29, came in at $813.8 million, up 7% from $762.6 million generated during the prior-year period ended Nov 30, 2013. Year-to-date comps witnessed 4% growth.
Furthermore, the company revealed that it inaugurated 5 new stores during November, located at West Palm Beach and Jacksonville, FL; Lansing and Norton Shores, MI; and Tyler, TX. Meanwhile, the company relocated 2 stores in Union, SC and Danville, VA. This brought the company’s total store count, as of Nov 29, 2014, to 1,348 stores in 32 states, compared with 1,328 as of Nov 30, 2013.
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