CATO

Shares of The Cato Corporation CATO have declined 25.6% since the company reported its earnings for the quarter ended Aug. 1, 2026. This compares with the S&P 500 index’s 0.6% decline over the same time frame. Over the past month, Cato shares have fallen 13.1%, while the S&P 500 has gained 3.4%. Cato reported second-quarter 2026 earnings per share of 6 cents, which decreased from 35 cents per share in the prior-year quarter. Retail sales of $163.9 million indicated a 6% decline from $174.7 million in the year-ago quarter. The decline primarily reflected a 3.7% decrease in same-store sales. Total revenues, which include other revenue principally from finance, late fees and layaway charges, fell to $165.5 million from $176.5 million. Net income declined sharply to $1.1 million from $6.8 million a year earlier. The Cato Corporation price-consensus-eps-surprise-chart | The Cato Corporation Quote Gross margin contracted to 32.8% of sales from 36.2% in the prior-year quarter, reflecting lower merchandise margins and the deleveraging of occupancy costs. Selling, general and administrative (SG&A) expenses represented 33% of sales, up slightly from 32.8% a year earlier. However, SG&A expenses declined $3.3 million. Income tax expense was $0.1 million compared with an income tax benefit of $0.3 million in the prior-year period. The balance sheet showed cash and cash equivalents of $35.1 million as of Aug. 1, 2026, up from $16.8 million as of Jan. 31, 2026. Short-term investments stood at $58.7 million, compared with $56.9 million. Merchandise inventories decreased modestly to $82.5 million from $83.7 million. Total assets were $423.4 million, up slightly from $421.4 million as of Jan. 31, 2026. Stockholders’ equity increased to $167.9 million from $157.3 million over the same period. Chairman, president and CEO John Cato attributed the weak quarterly results largely to continued pressure on customers' discretionary income. Management said persistent inflation, higher fuel prices and elevated interest rates are weighing on consumers' spending capacity. The company expects these pressures on discretionary income to persist for the foreseeable future.Against this backdrop, Cato intends to maintain tight control over expenses and inventory. Management expects the second half of 2026 to remain challenging, signaling continued caution around the near-term retail environment. Lower customer spending was a key drag on Cato's top line, with the 3.7% decline in same-store sales contributing to the 6% decrease in quarterly sales. Profitability faced additional pressure from weaker merchandise margins and occupancy-cost deleverage, which drove the sizable year-over-year contraction in gross margin. Cost controls provided a partial offset. SG&A expenses declined as lower payroll and credit card fees reduced operating expenses. Interest and other income also increased to about $2.3 million from $1.4 million a year earlier. Nevertheless, income before taxes dropped to $1.3 million from $6.5 million, underscoring the impact of weaker sales and margin compression on quarterly profitability. Cato continued to reduce its store footprint during the quarter, closing eight locations. The company operated 1,057 stores across 31 states as of Aug. 1, 2026, compared with 1,101 stores across 31 states as of Aug. 2, 2025. The company operates through the Cato, Versona and It's Fashion concepts. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cato Corporation (The) (CATO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

CHARLOTTE, N.C., Aug. 20, 2026 /PRNewswire/ -- The Cato Corporation (NYSE: CATO) today reported net income of $1.1 million or $0.06 per diluted share for the second quarter ended August 1, 2026, compared to net income of $6.8 million or $0.35 per diluted share for the second quarter ended August 2, 2025. Sales for the second quarter ended August 1, 2026 were $163.9 million, or a decrease of 6% from sales of $174.7 million for the second quarter ended August 2, 2025 primarily due to a 3.7% same-store sales decrease for the quarter compared to 2025. For the six months ended August 1, 2026, the Company reported net income of $10.5 million or $0.53 per diluted share, compared to net income of $10.1 million or $0.51 for the six months ended August 2, 2025. Sales for the six months ended August 1, 2026 were $333.3 million, a decrease of 2.9% from sales of $343.1 million for the six months ended August 2, 2025 primarily due to flat same-store sales compared to 2025 and the impact of closed stores. "Our results in the quarter are in large part due to the continued pressure on our customers' discretionary income, which is being negatively impacted in part by persistent inflation, higher fuel prices and continued elevated interest rates," stated John Cato, Chairman, President, and Chief Executive Officer. "We expect the negative pressure on our customers' discretionary income to continue for the foreseeable future. We will continue to tightly manage our expenses and inventory as we anticipate the back half of 2026 to be challenging." Gross margin decreased from 36.2% to 32.8% of sales in the quarter due to lower merchandise margins and deleveraging of occupancy costs. SG&A expenses as a percent of sales increased from 32.8% to 33.0% of sales during the quarter. For the quarter, SG&A expense decreased $3.3 million primarily due to lower payroll costs and credit card fees. Income tax expense for the quarter was $0.1 million versus an income tax benefit of $0.3 million in the prior year. Year-to-date gross margin decreased from 35.6% of sales to 35.0% primarily due to lower merchandise margins and deleveraging of occupancy costs. Year-to-date SG&A expenses were 32.4% as a percent of sales versus 32.8% in the prior year. Year-to-date SG&A expenses decreased $4.7 million primarily due to lower payroll, equipment and insurance costs, partially offset by professional fees and litigation costs. Income tax expense for the first half increased to $0.7 million from $0.6 million last year. During the second quarter ended August 1, 2026, the Company closed eight stores. As of August 1, 2026, the Company had 1,057 stores in 31 states, compared to 1,101 stores in 31 states as of August 2, 2025. The Cato Corporation is a leading specialty retailer of value-priced fashion apparel and accessories operating three concepts, "Cato," "Versona" and "It's Fashion." The Company's Cato stores offer exclusive merchandise with fashion and quality comparable to mall specialty stores at low prices every day. The Company also offers exclusive merchandise found in its Cato stores at www.catofashions.com. Versona is a unique fashion destination offering apparel and accessories including jewelry, handbags and shoes at exceptional prices every day. Select Versona merchandise can also be found at www.shopversona.com. It's Fashion offers fashion with a focus on the latest trendy styles for the entire family at low prices every day. Statements in this press release that express a belief, expectation or intention, as well as those that are not a historical fact, including, without limitation, statements regarding the Company's expected or estimated operational financial results, activities or opportunities, and potential impacts and effects of events, risks or contingencies are considered "forward-looking" within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations that are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those contemplated by the forward-looking statements. Such factors include, but are not limited to, any actual or perceived deterioration in the conditions that drive consumer confidence and spending, including, but not limited to, prevailing social, economic, political and public health conditions and uncertainties, levels of unemployment, fuel, energy and food costs, inflation, wage rates, tax rates, interest rates, home values, consumer net worth and the availability of credit; changes in laws or regulations affecting our business, including but not limited to tariffs and taxes; uncertainties regarding the impact of any governmental action regarding, or responses to, the foregoing conditions; competitive factors and pricing pressures; our ability to predict and respond to rapidly changing fashion trends and consumer demands; our ability to open new stores in attractive locations and the ability of any such new stores to grow and perform as expected; underperformance or other factors that may lead to a continuation or acceleration of store closures and negative affect on the Company's profitability; adverse weather, public health threats, acts of war or aggression or similar conditions that may affect our sales or operations; inventory risks due to shifts in market demand, including the ability to liquidate excess inventory at anticipated margins; and other factors discussed under "Risk Factors" in Part I, Item 1A of the Company's most recently filed annual report on Form 10-K and in other reports the Company files with or furnishes to the SEC from time to time. The Company does not undertake to publicly update or revise the forward-looking statements even if experience or future changes make it clear that the projected results expressed or implied therein will not be realized. The Company is not responsible for any changes made to this press release by wire or Internet services. View original content:https://www.prnewswire.com/news-releases/cato-reports-2q-results-302855620.html

Shares of The Cato Corporation CATO have gained 0.3% since the company reported earnings for the quarter ended May 2, 2026, compared with the S&P 500 index’s 1.1% change over the same period. Over the past month, the stock has risen 8.1%, outperforming the broader market’s 5.6% increase. Cato reported net income of 47 cents per share for the first quarter of 2026, sharply higher than 17 cents per share in the year-ago quarter. Sales increased 0.7% year over year to $169.5 million from $168.4 million, while same-store sales rose 3%. Gross margin expanded to 37.2% of sales from 35.1% a year earlier, and selling, general and administrative expenses declined to $53.9 million from $55.3 million. Net income of $9.3 million denoted a sharp rise from $3.3 million in the year-ago quarter. The Cato Corporation price-consensus-eps-surprise-chart | The Cato Corporation Quote Cato’s first-quarter profitability benefited significantly from a refund claim related to International Emergency Economic Powers Act (IEEPA) tariffs. The company said the pre-tax tariff refund totaled $5.7 million and contributed to higher gross margin during the quarter. However, management noted that merchandise contribution was pressured by higher sales of marked-down goods. Cost of goods sold declined to $106.3 million from $109.3 million in the prior-year quarter despite slightly higher sales, helping improve merchandise margins. SG&A expenses fell 2.5% year over year due to lower corporate payroll expense, reduced insurance costs and lower equipment maintenance expenses, partially offset by higher incentive compensation expense. SG&A expenses as a percentage of sales improved to 31.8% from 32.8% last year. Income before taxes more than doubled to $9.8 million from $4.2 million a year earlier, while income tax expense declined to $0.5 million from $0.9 million, primarily due to lower foreign taxes. Chairman, president and chief executive officer John Cato said the company’s results were aided by the tariff refund claim but acknowledged that sales momentum weakened as the quarter progressed. Management cited higher fuel prices as a key factor pressuring customers’ discretionary spending. According to the company, inflationary pressures tied to fuel and food costs are expected to continue weighing on consumer demand in the near term. The company stated that, for the foreseeable future, it expects sales to be negatively affected by rising inflation, particularly fuel and food prices that reduce shoppers’ disposable income. During the quarter, Cato opened two stores and closed six stores. As of May 2, 2026, the company operated 1,065 stores across 31 states, down from 1,109 stores in 31 states a year earlier. The company ended the quarter with cash and cash equivalents of $25.4 million, up from $16.8 million at the end of fiscal 2025. Short-term investments stood at $55.6 million compared with $56.9 million at the beginning of the fiscal year. Merchandise inventories increased to $92.5 million from $83.7 million.Stockholders’ equity rose to $166.7 million from $157.3 million at the end of fiscal 2025. The company repurchased 107,823 shares during the quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cato Corporation (The) (CATO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

CHARLOTTE, N.C., May 21, 2026 /PRNewswire/ -- The Cato Corporation (NYSE: CATO) today reported net income of $9.3 million or $0.47 per diluted share for the first quarter ended May 2, 2026, compared to net income of $3.3 million or $0.17 per diluted share for the first quarter ended May 3, 2025. Sales for the first quarter ended May 2, 2026 were $169.5 million, or an increase of 0.7% from sales of $168.4 million for the first quarter ended May 3, 2025. The Company's same-store sales for the quarter increased 3%. "Our results significantly benefited from the refund claim of IEEPA (International Emergency Economic Powers Act) tariffs in the quarter. Our sales trend softened as the quarter continued in part due to higher fuel prices pressuring our customers' discretionary income," said John Cato, Chairman, President and Chief Executive Officer." For the foreseeable future we expect our sales to be negatively impacted by rising inflation, especially fuel and food prices, which will reduce our customers' discretionary income." First quarter gross margin as a percentage of sales was 37.2% in 2026 and 35.1% in 2025. The increase in gross margin as a percentage of sales is due in part to a pre-tax $5.7 million tariff refund claim partially offset by lower merchandise contribution caused in part by higher sales of marked-down goods. Selling, General and Administrative expense decreased to $53.9 million in the first quarter of 2026 from $55.3 million in 2025 due to decreases in corporate payroll expense, insurance costs and equipment maintenance partially offset by incentive compensation expense. Selling, General and Administrative expense as a percentage of sales decreased to 31.8% in 2026 compared to 32.8% in 2025. Interest and other income were $1.2 million in both 2026 and 2025. Income tax expense for the quarter decreased to $0.5 million in 2026 from $0.9 million in 2025. The decrease in tax expense is primarily due to a reduction in foreign taxes. Additionally, the Company bought back 107,823 shares during the quarter. During the first quarter ended May 2, 2026, the Company opened two stores and closed six stores. As of May 2, 2026, the Company operated 1,065 stores in 31 states, compared to 1,109 stores in 31 states as of May 2, 2025. The Cato Corporation is a leading specialty retailer of value-priced fashion apparel and accessories operating three concepts, "Cato," "Versona" and "It's Fashion." The Company's Cato stores offer exclusive merchandise with fashion and quality comparable to mall specialty stores at low prices every day. The Company also offers exclusive merchandise found in its Cato stores at www.catofashions.com. Versona is a unique fashion destination offering apparel and accessories including jewelry, handbags and shoes at exceptional prices every day. Select Versona merchandise can also be found at www.shopversona.com. It's Fashion offers fashion with a focus on the latest trendy styles for the entire family at low prices every day. Statements in this press release that express a belief, expectation or intention, as well as those that are not a historical fact, including, without limitation, statements regarding the Company's expected or estimated operational financial results, activities or opportunities, and potential impacts and effects of events, risks or contingencies are considered "forward-looking" within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations that are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those contemplated by the forward-looking statements. Such factors include, but are not limited to, any actual or perceived deterioration in the conditions that drive consumer confidence and spending, including, but not limited to, prevailing social, economic, political and public health conditions and uncertainties, levels of unemployment, fuel, energy and food costs, inflation, wage rates, tax rates, interest rates, home values, consumer net worth and the availability of credit; changes in laws or regulations affecting our business, including but not limited to tariffs and taxes; uncertainties regarding the impact of any governmental action regarding, or responses to, the foregoing conditions; competitive factors and pricing pressures; our ability to predict and respond to rapidly changing fashion trends and consumer demands; our ability to open new stores in attractive locations and the ability of any such new stores to grow and perform as expected; underperformance or other factors that may lead to a continuation or acceleration of store closures and negative affect on the Company's profitability; adverse weather, public health threats, acts of war or aggression or similar conditions that may affect our sales or operations; inventory risks due to shifts in market demand, including the ability to liquidate excess inventory at anticipated margins; and other factors discussed under "Risk Factors" in Part I, Item 1A of the Company's most recently filed annual report on Form 10-K and in other reports the Company files with or furnishes to the SEC from time to time. The Company does not undertake to publicly update or revise the forward-looking statements even if experience or future changes make it clear that the projected results expressed or implied therein will not be realized. The Company is not responsible for any changes made to this press release by wire or Internet services. View original content:https://www.prnewswire.com/news-releases/cato-reports-1q-earnings-302778531.html

CHARLOTTE, N.C., Nov. 20, 2025 /PRNewswire/ -- The Cato Corporation (NYSE: CATO) today reported a net loss of $5.2 million or ($0.28) per diluted share for the third quarter ended November 1, 2025, compared to a net loss of $15.1 million or ($0.79) per diluted share for the third quarter ended November 2, 2024. Sales for the third quarter ended November 1, 2025 were $153.7 million, an increase of 6% from sales of $144.6 million for the third quarter ended November 2, 2024. The Company's same-store sales for the quarter increased 10% compared to 2024. For the nine months ended November 1, 2025, the Company reported net income of $5.0 million or $0.25 per diluted share, compared to a net loss of $4.0 million or ($0.24) per diluted share for the nine months ended November 2, 2024. Sales for the nine months ended November 1, 2025 were $496.8 million, an increase of 2% to sales of $486.8 million for the nine months ended November 2, 2024. Year-to-date same-store sales increased 6% compared to 2024. "Our positive second quarter sales trend continued into the third quarter. We attribute this, in part due to 2024 third quarter sales being negatively impacted by three major hurricanes over a five week span and supply chain issues causing late merchandise receipts to the stores," stated John Cato, Chairman, President, and Chief Executive Officer. "We believe the fourth quarter will be challenging due in part to the slowdown in employment growth and lower expected economic growth. We will continue to tightly manage our expenses and inventory levels, while driving continued sales growth in the fourth quarter." Gross margin increased from 28.8% to 32.0% of sales in the quarter due to lower freight, distribution, buying and occupancy costs as a percent of sales, partially offset by higher markdowns. SG&A expenses as a percent of sales decreased from 40.0% to 37.1% of sales during the quarter primarily due to lower payroll, professional fees and insurance costs as a percent of sales. SG&A expenses were $57.0 million, a $0.9 million reduction compared to last year. The tax benefit for the quarter was $1.2 million versus tax expense of $0.3 million in the prior year, primarily due to a reduction in foreign income taxes and an increase in the roll-off of reserves for uncertain tax positions in the current year. Year-to-date gross margin increased to 34.5% of sales from 33.3% in the prior year primarily due to lower freight, distribution, buying and occupancy costs as a percent of sales, partially offset by higher markdowns. The year-to-date SG&A rate was 34.2% versus 35.5% primarily due to lower payroll and insurance costs as a percent of sales. Year-to-date SG&A expenses decreased to $169.7 million from $172.8 million last year. The tax benefit for the nine-month period was $0.5 million compared to $1.6 million tax expense last year, due to a reduction in foreign income taxes and an increase in the roll-off of reserves for uncertain tax positions in the current year. Year-to-date, the Company closed 16 stores. As of November 1, 2025, the Company has 1,101 stores in 31 states, compared to 1,167 stores in 31 states as of November 2, 2024. The Cato Corporation is a leading specialty retailer of value-priced fashion apparel and accessories operating three concepts, "Cato," "Versona" and "It's Fashion." The Company's Cato stores offer exclusive merchandise with fashion and quality comparable to mall specialty stores at low prices every day. The Company also offers exclusive merchandise found in its Cato stores at www.catofashions.com. Versona is a unique fashion destination offering apparel and accessories including jewelry, handbags and shoes at exceptional prices every day. Select Versona merchandise can also be found at www.shopversona.com. It's Fashion offers fashion with a focus on the latest trendy styles for the entire family at low prices every day. Statements in this press release that express a belief, expectation or intention, as well as those that are not a historical fact, i ncluding, without limitation, statements regarding the Company's expected or estimated operational financial results, activities or opportunities, and potential impacts and effects of the coronavirus are considered "forward-looking" within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations that are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those contemplated by the forward-looking statements. Such factors include, but are not limited to , any actual or perceived deterioration in the conditions that drive consumer confidence and spending, including, but not limited to, prevailing social, economic, political and public health conditions and uncertainties, levels of unemployment, fuel, energy and food costs, wage rates, tax rates, interest rates, home values, consumer net worth and the availability of credit; changes in laws or regulations affecting our business including but not limited to tariffs; uncertainties regarding the impact of any governmental action regarding, or responses to, the foregoing conditions; competitive factors and pricing pressures; our ability to predict and respond to rapidly changing fashion trends and consumer demands; our ability to successfully implement our new store development strategy to increase new store openings and the ability of any such new stores to grow and perform as expected; adverse weather, public health threats (including the global coronavirus (COVID-19) outbreak) or similar conditions that may affect our sales or operations; inventory risks due to shifts in market demand, including the ability to liquidate excess inventory at anticipated margins; and other factors discussed under "Risk Factors" in Part I, Item 1A of the Company's most recently filed annual report on Form 10-K and in other reports the Company files with or furnishes to the SEC from time to time. The Company does not undertake to publicly update or revise the forward-looking statements even if experience or future changes make it clear that the projected results expressed or implied therein will not be realized. The Company is not responsible for any changes made to this press release by wire or Internet services. View original content:https://www.prnewswire.com/news-releases/cato-reports-3q-results-302621173.html

Shares of The Cato Corporation CATO have surged 39.1% since the company reported its fiscal second-quarter results on Aug. 2, 2025, far outpacing the S&P 500 index’s modest 0.8% growth over the same period. Over the past month, the stock has advanced 32.1% compared with a 1% increase in the broader benchmark, reflecting strong investor enthusiasm following the earnings release. In the second quarter, Cato reported net income of 35 cents per share, up from 1 cent per share in the same quarter last year. Sales increased 5% year over year to $174.7 million from $166.9 million, driven largely by a 9% same-store sales increase. This performance underscores a sharp improvement in profitability compared to the prior year, when supply chain disruptions weighed on results. Cato’s net income of $6.8 million denoted a significant jump from $0.1 million in the same quarter last year. The Cato Corporation price-consensus-eps-surprise-chart | The Cato Corporation Quote Gross margin improved to 36.2% of sales in the quarter, up from 34.6% a year earlier. The expansion was attributed to lower distribution and buying costs, partially offset by reduced merchandise margins. Selling, general and administrative (SG&A) expenses also declined as a share of sales, falling to 32.8% from 34.9% in the prior-year quarter, reflecting lower payroll and insurance costs despite higher advertising and corporate expenses. Chairman, president, and CEO John Cato noted that sales trends continued to improve in the second quarter, partly because last year’s results were negatively impacted by supply chain disruptions. However, management remained cautious, highlighting uncertainty in the second half of 2025 tied to tariffs and potential cost pressures on product acquisition. The company emphasized its ongoing focus on managing expenses tightly to navigate these challenges. Several elements contributed to the quarter’s stronger showing. Improved same-store sales growth was a key driver, reflecting healthier consumer demand and more stable inventory flows. The improved gross margin benefited from reduced distribution and buying costs, while lower payroll and insurance expenses helped reduce SG&A. At the same time, the company recognized some offsetting factors, including lower merchandise margins and rising advertising and corporate costs. Income tax treatment also played a role in boosting profitability, with Cato recording a $0.3 million tax benefit in the quarter compared with a $0.6 million expense in the year-ago period. Management pointed to uncertainty surrounding tariffs, inflationary pressures, and their potential negative impact on product acquisition costs. Broader macroeconomic conditions, such as consumer confidence, unemployment levels, and discretionary spending trends, were also highlighted as key variables that could affect future performance. During the quarter, Cato closed eight stores, bringing its total store count to 1,101 in 31 states as of Aug. 2, 2025, down from 1,166 stores a year earlier. The store rationalization underscores management’s ongoing efforts to balance footprint optimization with growth initiatives across its three retail concepts: Cato, Versona and It’s Fashion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cato Corporation (The) (CATO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research