(CHARLOTTE) -- The Cato Corporation reported fourth quarter net income of $10.1 million or $0.35 per diluted share. This compared to net income of $10.9 million or $0.37 per diluted share for the fourth quarter of the prior year.

The Charlotte-based discount women's apparel retailer reported full year 2011 net income of  $64.8 million or $2.21 per diluted share. This compared to $58.9 million or $2.00 per diluted share for 2010.

"In 2011, Cato delivered its second consecutive year of record earnings," said Chairman, President and Chief Executive Officer, John Cato.  "However, the second half of the year was very difficult both in terms of the sales environment and the increased merchandise costs we faced.  In the fourth quarter, sales were below expectations but we were able to generate earnings within our original guidance."

Sales for fiscal fourth quarter ended January 28, 2012 were $221.5 million, a 1 percent decrease from sales of $224.0 million for the fourth quarter ended January 29, 2011.  For the quarter, same-store sales decreased 4 percent.  The Company's sales for 2011 were $920.6 million, an increase of 1 percent over 2010 sales of $913.1 million.  For the year, same-store sales decreased 1 percent.