(CHARLOTTE) -- The Cato Corp. reported June sales of $83.7 million. This represents a 7 percent decrease from sales of $90.4 million for the five weeks ended July 2, 2011.  Same-store sales for the five-week period decreased 10 percent.

"June same-store sales were below expectations," said John Cato, Chairman, President, and Chief Executive Officer of the Charlotte-base discount women's apparel retailer.  "Year-to-date same-store sales results have been volatile, driven in part by various economic and political uncertainties as well as unseasonable weather.   We believe it is likely this volatility will continue and we remain cautious as we look toward the second half of the year.  We now expect second quarter earnings per diluted share will be at the low end of our original guidance range of $.53 to $.57, a decrease of 13% to 7% compared to $.61 last year."