Cato Cuts Profit Outlook After Disappointing September Sales

Cato Corp. lowered its earnings outlook for fiscal third quarter ending October following September same-store sales that were "well below" expectations. The discount apparel retailer now expects EPS of 7 cents to 11 cents, compared with a previous outlook of 13 cents to 18 cents. Same-store sales for September fell 9%, while total sales for the month declined 8% to $76.2 million. The stock, which was still inactive in premarket trade, has dropped 10% year to date, while the SPDR S&P Retail ETF has gained 1.7% and the S&P 500 has tacked on 5.7%.