Why Shares Of Cato Were Trading Higher Thursday Morning

Shares of Cato Corp (NYSE: CATO) were trading higher by more than 2.75 percent during Thursday's pre-market session after the company reported December same-store sales data.

Cato stated that same-store sales for the five-week period ending January 3 rose 6 percent. Total sales rose 9 percent from the same period a year ago to $100.1 million. Sales for the 11-month period ending January 3 rose 7 percent from the same period a year ago to $923.0 million.

Cato noted that December's same-store sales gain were positively impacted by weather and were above expectations. Accordingly, the company now expects its fourth quarter earnings per diluted share to be in a range of $0.25 to $0.29, higher than previous guidance of $0.13 to $0.17 per diluted share. Earnings per diluted share for the full fiscal year are now projected to be $2.07 to $2.11, versus previous guidance of $1.95 to $1.99 per diluted share.