The retailer, which operates under the banners "Cato" and "It's Fashion," posted a 29% year-over-year increase in 2005 net income, which came in at $44.8 million, or $1.41 per diluted share. Sales for the year were $821.6 million, a 6% increase from 2004's sales of $773.8 million. Comparable-store sales were up 1%. Last year, the company opened 82 stores, relocated 16 stores, and closed 15 units.

John Cato, chairman, president and chief executive officer, says the increase in the retailer's 2005 results can be attributed to better margins. He went on to say that the company's growth plans this year include "executing our long-term strategies of improving the merchandise and customer service, strengthening the infrastructure, and expanding the store base."

For the full-year 2006, execs estimate same-store sales could reach 2%. Net income is expected to be $46.4 million to $49.3 million, an increase of 4% to 10%, and earnings per diluted share to be in the range of $1.46 to $1.55, an increase of 4% to 10%.