Catherines Stores Corporation reports May sales results.

MEMPHIS, Tenn.--(BUSINESS WIRE)--June 6, 1996--Catherines Stores Corporation (NASDAQ:CATH) reported Thursday that unaudited sales for its four-week period end June 1, 1996 decreased 1.6% to $24.8 million from $25.2 million. Year to date sales increased 2.4% to $95.2 million from $93.0 million. Comparable stores' sales decreased 6.6% in May and 2.6% year to date.

The Company opened three stores during the month and closed one underperforming location. The Company anticipates opening 11 to 16 new stores in the fall season.

Commenting on the sales results, Bernard J. Wein, President and CEO, stated, "As the retail apparel market continues to struggle, we are positioning ourselves for long-term improvement. Although May's sales were disappointing, inventories per store are approximately 9% less than last year. In the short term this may mean a reduction in sales, as there is less clearance merchandise available for our customer to purchase. In the long term, this should improve our margins since we will take fewer markdowns."

Catherines Stores Corporation is a Memphis based specialty retailer selling large-size women's apparel in 453 stores in 40 states operating under the names Catherine's; PS..Plus Sizes, Plus Savings; Added Dimensions; and The Answer.

CONTACT: Catherines Stores Corporation, Memphis

David C. Forell, 901/363-3900, ext. 1271