(CHARLOTTE) -- The Cato Corporation reported fourth quarter net income of $7.9 million or $0.27 per diluted share. This compared to net income of $7.3 million or $0.25 per diluted share during the same period of the prior year.

The Charlotte-based discount women's apparel retailer reported full year 2010 net income of $57.7 million or $1.96 per diluted share compared to $45.8 million or $1.55 per diluted share for 2009.

"Cato delivered record earnings in 2010, the Company's third straight year of strong growth, by continuing to offer our customers great fashion and customer service at a great value," said John Cato, Chairman, President and Chief Executive Officer.  "Weaker than expected sales over the last half of the fourth quarter created higher than expected markdowns and negatively impacted the quarter's results."

Cato's sales for fiscal fourth quarter were $224.3 million, a 3 percent increase over sales of $217.7 million for the fourth quarter of the prior year.  For the quarter, same-store sales increased 1 percent.  The Company's sales for 2010 were $913.9 million, an increase of 5 percnet over 2009 sales of $872.1 million.  For the year, same-store sales increased 3 percent.