Cato 1Q profit falls as costs offset sales

The company earned $16.9 million, or 58 cents per share, compared with profit of $18.7 million, or 59 cents per share, during the same period a year prior. Revenue rose just under 1 percent to $228.8 million from $227.2 million.

Retail sales rose to $225.8 million from $224.1 million. The rest of the revenue came from finance and layaway charges and other fees.

Same-store sales slid 2 percent. Same-store sales, or sales at stores open at least a year, is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.

"We continue to see weakness in the women's specialty apparel segment,," said John Cato, chairman, president, and chief executive, in a statement.

Costs, meanwhile, rose 2 percent to $201.6 million.