CATO REPORTS 4Q AND FULL YEAR LOSS

Rhea-AI Summary

The Cato Corporation (NYSE: CATO) reported a Q4 net loss of $10.7 million (diluted loss $0.55) for the quarter ended Jan 31, 2026, versus a $14.1 million loss a year earlier. Full-year 2025 net loss improved to $5.9 million from $18.1 million in 2024.

Q4 sales were $150.0 million (down 3.4%); full-year sales rose 0.7% to $646.8 million with year-to-date same-store sales up 4%. Gross margin expanded to 29.2% in Q4 and 33.3% for the year; SG&A declined $5.0 million for fiscal 2025.

Positive

• Full-year sales +0.7% to $646.8 million
• Year-to-date same-store sales +4%
• Full-year net loss improved from $18.1M to $5.9M
• Gross margin increased to 33.3% for fiscal 2025
• SG&A expenses decreased by $5.0 million year-over-year

Negative

• Quarterly sales declined 3.4% to $150.0 million
• Q4 net loss of $10.7 million (diluted loss $0.55)
• Company closed 48 stores in 2025 and plans up to 40 more closures
• Cash and cash equivalents declined ~17% to $16.8 million from $20.3 million

Key Figures

Q4 net loss: ($10.7) million Q4 diluted EPS: ($0.55) FY25 net loss: ($5.9) million +5 more

8 metrics

Q4 net loss ($10.7) million Quarter ended January 31, 2026

Q4 diluted EPS ($0.55) Quarter ended January 31, 2026

FY25 net loss ($5.9) million Full-year fiscal 2025

FY25 diluted EPS ($0.31) Full-year fiscal 2025

Q4 sales $150.0 million Quarter ended January 31, 2026; down from $155.3M in 2024

FY25 sales $646.8 million Full-year fiscal 2025; up from $642.1M in 2024

Q4 gross margin rate 29.2% Quarter ended January 31, 2026; up from 28.0% in 2024

Same-store sales change 4% Year-to-date same-store sales increase vs 2024

Market Reality Check

Price: $2.93 Vol: Volume 30,479 is below th...

normal vol

$2.93 Last Close

Volume Volume 30,479 is below the 20-day average of 42,570, suggesting muted pre-news positioning. normal

Technical Shares at $3.00 are trading below the $3.40 200-day moving average.

Peers on Argus

CATO slipped 2.34% with mixed apparel peers: DXLG -7.15%, AKA -14.81%, TLYS +27....

1 Up

CATO slipped 2.34% with mixed apparel peers: DXLG -7.15%, AKA -14.81%, TLYS +27.5%, BRIA +2.08%, DLTH -3.12%, pointing to stock-specific dynamics around results.

Common Catalyst Several apparel retailers, including DXLG and DLTH, also reported earnings, indicating an earnings-driven news cycle in the segment.

Historical Context

1 past event · Latest: Nov 20 (Positive)

Pattern 1 events

Date	Event	Sentiment	Move	Catalyst
Nov 20	Q3 earnings update	Positive	-2.0%	Narrowed quarterly loss with higher sales and stronger same-store performance.

Pattern Detected

Limited history, but the last quarterly update showed improved fundamentals alongside a negative price reaction, suggesting cautious sentiment toward results.

Recent Company History

In the prior update on Nov 20, 2025, Cato reported a sharply narrower Q3 net loss of $5.2M versus a year earlier, with sales up 6% to $153.7M and same-store sales up 10%. Year-to-date, it moved to net income of $5.0M, and margins improved. Despite these positive trends, the stock fell about 2.05%, showing investors reacted cautiously to better, but not fully resolved, fundamentals. Today’s full-year loss continues that gradual improvement theme.

Market Pulse Summary

This announcement highlights a smaller Q4 and full-year loss, with full-year sales of $646.8M and gr...

Analysis

This announcement highlights a smaller Q4 and full-year loss, with full-year sales of $646.8M and gross margin improving to 33.3%. Same-store sales grew 4% for the year, while 48 stores were closed, leaving 1,069 locations. Management’s outlook for 2026 remains cautious given economic pressures on customers. Investors may focus on whether margin gains and cost control can eventually eliminate losses and how planned store openings and closures affect overall profitability.

Key Terms

same-store sales, gross margin, selling, general and administrative, SG&A, +3 more

7 terms

same-store sales financial

"Same-store sales for the fourth quarter were flat compared to 2024."

Same-store sales measure the revenue generated by stores that have been open for a certain period, typically a year, comparing their sales over different time frames. It helps assess whether a business is growing due to increased customer activity at existing locations rather than new stores. For investors, this figure indicates the health and performance of a company's core operations, independent of expansion efforts.

gross margin financial

"Fourth-quarter gross margin increased from 28.0% of sales in 2024 to 29.2%..."

Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.

selling, general and administrative financial

"Selling, general and administrative (SG&A) expenses decreased $1.9 million in the quarter."

Selling, general and administrative (SG&A) expenses are the day-to-day costs a company incurs to run the business that aren’t directly tied to making a product or delivering a service, such as salaries for sales and office staff, rent, marketing, and office supplies. For investors, SG&A shows how much a company spends to support operations and grow sales—like the overhead on a household budget—so rising or unusually high SG&A can squeeze profits even if sales are steady.

SG&A financial

"Selling, general and administrative (SG&A) expenses decreased $1.9 million..."

SG&A stands for Selling, General, and Administrative expenses. It includes the costs a company spends on selling products, running the business day-to-day, and managing staff, like advertising, rent, and salaries. These expenses matter because they affect how much profit a company can make from its sales.

income tax benefit financial

"Income tax benefit for the quarter was $1.1 million compared to expense..."

An income tax benefit is a reduction in a company’s tax bill that increases its reported profit or cash flow, arising from things like tax credits, loss carryforwards, or adjustments to deferred tax balances. For investors it matters because it can temporarily boost earnings or free up cash for dividends, debt repayment, or reinvestment — similar to getting a rebate that improves your household budget and changes how much you can spend or save.

forward-looking regulatory

"Statements in this press release that express a belief, expectation or intention... are considered "forward-looking"..."

Forward-looking describes statements, estimates or projections about a company’s future performance, plans or expectations rather than past results. Like a weather forecast for a business, these predictions help investors form expectations and decide whether to buy, hold or sell, but they are not guarantees and can change if conditions differ from assumptions. Investors use them to gauge management’s strategy and potential risks and rewards.

Form 10-K regulatory

"other factors discussed under "Risk Factors" in Part I, Item 1A of the Company's most recently filed annual report on Form 10-K..."

A Form 10-K is a comprehensive report that publicly traded companies are required to file annually with regulators. It provides a detailed overview of a company's financial health, operations, and risks, similar to a detailed health report. Investors use this information to assess the company's performance and make informed decisions about buying or selling its stock.

AI-generated analysis. Not financial advice.

CHARLOTTE, N.C., March 19, 2026 /PRNewswire/ -- The Cato Corporation (NYSE: CATO) today reported a net loss of ($10.7) million or ($0.55) per diluted share for the fourth quarter ended January 31, 2026, compared to a net loss of ($14.1) million or ($0.74) per diluted share for the fourth quarter ended February 1, 2025.  Full-year fiscal 2025 net loss was ($5.9) million or ($0.31) per diluted share compared to a net loss of ($18.1) million or ($0.97) per diluted share for 2024.

Sales for the fourth quarter ended January 31, 2026 were $150.0 million, a decrease of 3.4% from sales of $155.3 million for the fourth quarter ended February 1, 2025. Same-store sales for the fourth quarter were flat compared to 2024. For the year, the Company's sales increased 0.7% to $646.8 million from 2024 sales of $642.1 million. Year-to-date same-store sales increased 4% compared to 2024.

"Compared to 2024, our fiscal 2025 sales trend was encouraging although 2024 was negatively impacted by supply chain interruptions which caused late merchandise to our stores, as well as more severe weather events including three hurricanes," said John Cato, Chairman, President, and Chief Executive Officer. "During 2025 we continued to focus on improving our merchandise offering, serving the customer, controlling expenses, and leveraging the investments in our store and distribution center technologies."

Fourth-quarter gross margin increased from 28.0% of sales in 2024 to 29.2% of sales in 2025 primarily due to decreases in payroll and occupancy costs, partially offset by higher sales of markdown product. Selling, general and administrative (SG&A) expenses decreased $1.9 million in the quarter.  SG&A as a percent of sales increased slightly from 37.8% in 2024 to 37.9% in 2025 during the quarter. Income tax benefit for the quarter was $1.1 million compared to expense of $0.3 million last year.

For the full year 2025, gross margin increased from 32.0% of sales in 2024 to 33.3% of sales in 2025. This increase was in part due to lower payroll, distribution, and freight costs, partially offset by higher sales of markdown product. SG&A expenses decreased to 35.0% of sales in 2025 compared to 36.0% of sales in 2024. The SG&A decrease was primarily due to lower payroll costs,  closed store, and impairment expenses.  For the year, SG&A expenses decreased $5.0 million. Income tax benefit for the year was $1.6 million compared to expense of $1.9 million last year.

"As we look ahead to 2026, we are focused on improving our merchandise assortment including new product offerings, leveraging our investments in technology, especially in our stores and the distribution center, while continuing to provide excellent customer service," stated Mr. Cato. "Our 2026 outlook is tempered by the current economic uncertainties and continued pressure on our customers' disposable income."

During 2025, the Company closed 48 stores. As of January 31, 2026, the Company operated 1,069 stores in 31 states, compared to 1,117 stores in 31 states as of February 1, 2025. During 2026, the Company plans to open up to 10 new stores and close up to 40 underperforming stores as leases expire. These store closings are anticipated to have minimal financial impact.

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.

 

THE CATO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED)
FOR THE PERIODS ENDED JANUARY 31, 2026 AND FEBRUARY 1, 2025
(Dollars in thousands, except per share data)
	Quarter Ended								Twelve Months Ended
	January 31,		%		February 1,		%		January 31,		%		February 1,		%
	2026		Sales		2025		Sales		2026		Sales		2025		Sales
REVENUES
Retail sales	$	150,019	100.0 %		$	155,292	100.0 %		$	646,830	100.0 %		$	642,140	100.0 %
Other revenue (principally finance,
late fees and layaway charges)		1,640	1.1 %			2,617	1.7 %			6,982	1.1 %			7,666	1.2 %
Total revenues		151,659	101.1 %			157,909	101.7 %			653,812	101.1 %			649,806	101.2 %
GROSS MARGIN (Memo)		43,770	29.2 %			43,434	28.0 %			215,279	33.3 %			205,700	32.0 %
COSTS AND EXPENSES, NET
Cost of goods sold		106,249	70.8 %			111,858	72.0 %			431,551	66.7 %			436,440	68.0 %
Selling, general and administrative		56,792	37.9 %			58,680	37.8 %			226,462	35.0 %			231,489	36.0 %
Depreciation		2,454	1.6 %			2,711	1.7 %			9,986	1.5 %			9,817	1.5 %
Interest and other income		(1,912)	-1.3 %			(1,618)	-1.0 %			(6,687)	-1.0 %			(11,827)	-1.8 %
Costs and expenses, net		163,583	109.0 %			171,631	110.5 %			661,312	102.2 %			665,919	103.7 %
Loss Before Income Taxes		(11,924)	-7.9 %			(13,722)	-8.8 %			(7,500)	-1.2 %			(16,113)	-2.5 %
Income Tax (Benefit) Expense		(1,063)	-0.7 %			330	0.2 %			(1,591)	-0.2 %			1,944	0.3 %
Net Loss	$	(10,861)	-7.2 %		$	(14,052)	-9.0 %		$	(5,909)	-0.9 %		$	(18,057)	-2.8 %
Basic Loss Per Share	$	(0.55)			$	(0.74)			$	(0.31)			$	(0.97)
Diluted Loss Per Share	$	(0.55)			$	(0.74)			$	(0.31)			$	(0.97)

 

THE CATO CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
	January 31,				February 1,
	2026				2025
	(Unaudited)				(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents	$	16,788			$	20,279
Short-term investments		56,859				57,423
Restricted cash		2,675				2,799
Accounts receivable - net		25,462				24,540
Merchandise inventories		83,696				110,739
Other current assets		7,787				7,406
Total Current Assets		193,267				223,186
Property and Equipment - net		53,748				60,326
Other Assets		20,471				19,979
Right-of-Use Assets, net		153,933				148,870
TOTAL	$	421,419			$	452,361
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities	$	102,385			$	130,684
Current Lease Liability		53,507				57,555
Noncurrent Liabilities		11,272				13,485
Lease Liability		96,941				88,341
Stockholders' Equity		157,314				162,296
TOTAL	$	421,419			$	452,361

 

View original content:https://www.prnewswire.com/news-releases/cato-reports-4q-and-full-year-loss-302718113.html

SOURCE The Cato Corporation

FAQ

What was CATO's net loss for the quarter ended January 31, 2026?

CATO reported a Q4 net loss of $10.7 million for the quarter ended January 31, 2026. According to the company, the diluted loss per share was $0.55, improved from a $0.74 diluted loss in the prior-year quarter.

How did CATO's full-year 2025 sales and same-store sales perform (NYSE: CATO)?

CATO's full-year 2025 sales rose 0.7% to $646.8 million versus 2024. According to the company, year-to-date same-store sales increased 4%, reflecting improved merchandise assortment and inventory timing.

What margin and expense changes did CATO report for fiscal 2025?

Gross margin increased to 33.3% for fiscal 2025, with SG&A down by $5.0 million year-over-year. According to the company, margin gains were driven by lower payroll, distribution, and freight costs.

How many stores did CATO operate and what are its 2026 store plans (CATO)?

As of January 31, 2026, CATO operated 1,069 stores in 31 states and closed 48 stores during 2025. According to the company, it plans to open up to 10 new stores and close up to 40 underperforming locations in 2026.

Did CATO improve profitability in 2025 despite the net loss (ticker CATO)?

Yes. CATO's full-year net loss narrowed to $5.9 million in 2025 from $18.1 million in 2024, reflecting margin expansion and lower SG&A. According to the company, expense reductions and operational improvements contributed to the year-over-year improvement.