(CHARLOTTE) -- The Cato Corporation reported record first quarter net income of $30.5 million.  This compared to net income of $25.1 million during the same period of 2010.

The Charlotte-based discount women's apparel retailer achieved the record profit on first quarter sales of $270.9 million, a 5% increase over sales of $259 million for the first quarter of last year. The Company's same store sales increased 2 percent during the quarter.

"First quarter sales, including a strong February, were above expectations," said John Cato, Chairman, President, and Chief Executive Officer.  "Higher sales and a reduction in incentive compensation drove our record quarter."

Mr. Cato indicated that expectations for the second quarter remain unchanged. "We continue to expect second quarter same store sales will be in the range of down 2 percent to flat and earnings per diluted share will be in the range of $.57 to $.59 versus $.58 last year, as restated."