Cato Reports November Comp Store Sales Flat

The Cato Corporation
(NYSE: CATO) today reported sales for the four weeks ended November 28,
2009 of $61.6 million, an increase of 2% over sales of $60.6 million for
the four week period ended November 29, 2008. Same-store sales for the
month were flat to the prior year.

    Sales for the ten months ended November 28, 2009 were $716.0 million,
an increase of 3% over sales of $697.2 million for the ten months ended
November 29, 2008. The Company's year-to-date same-store sales increased
1%.

    "November same-store sales were in line with our estimated range for
the fourth quarter of down 3% to flat," stated John Cato, Chairman,
President, and Chief Executive Officer. "Inventory remains well controlled
as we begin the holiday shopping season."

    In November, the Company opened three stores and closed one store. New
stores opened in Sandersville, GA, Shreveport, LA and Lufkin, TX. As of
November 28, 2009, the Company operated 1,293 stores in 31 states, compared
to 1,308 stores in 31 states as of November 29, 2008.

    The Cato Corporation is a leading specialty retailer of value-priced
women's fashion apparel and accessories operating two divisions, "Cato" and
"It's Fashion". The Company's Cato division offers exclusive merchandise
with fashion and quality comparable to mall specialty stores at low prices
every day. The It's Fashion division offers fashion with a focus on the
latest trendy styles and nationally recognized urban brands for the entire
family at low prices every day. Additional information on The Cato
Corporation is available at http://www.catocorp.com.