(CHARLOTTE) -- The Cato Corporation reported June sales of $90.4 million.  This compared to sales of $88.2 million the similar period last year. Same-store sales for the reported five-week period increased 1 percent.

"June same-store sales overall were slightly above expectations," said John Cato, Chairman, President, and Chief Executive Officer. "However, same-store sales softened toward the end of the month compared to our year-to-date trend. We continue to expect second quarter earnings per diluted share will be in the range of $.57 to $.59." This would compare to $.58 last year, as restated.

The Charlotte-based discount women's apparel retailer expects rising raw material and freight costs to have a negative impact on the Company's performance in the second half of 2011.