Cato (NYSE: CATO) narrows 2025 loss on better margins, store cuts

Rhea-AI Filing Summary

The Cato Corporation filed an amended report to correct the date on its balance sheet, while reaffirming results for the fourth quarter and full year ended January 31, 2026.

The company reported a fourth-quarter net loss of $10.7 million, or ($0.55) per diluted share, improving from a loss of $14.1 million, or ($0.74) per share, a year earlier. Quarterly sales fell 3.4% to $150.0 million, with same-store sales flat. For fiscal 2025, Cato posted a net loss of $5.9 million, or ($0.31) per share, compared with a $18.1 million loss in 2024, as sales inched up to $646.8 million and same-store sales rose 4%. Full-year gross margin increased to 33.3% of sales and SG&A fell to 35.0% of sales, reflecting lower payroll and store-related costs. The company closed 48 stores in 2025, ending the year with 1,069 locations, and plans to open up to 10 and close up to 40 underperforming stores in 2026.

Insights

Retail equity analyst

Cato narrowed losses in 2025 through margin gains and cost control despite soft top-line trends.

Cato shows operational progress: the full-year net loss shrank to $5.9 million from $18.1 million as gross margin improved to 33.3% and SG&A fell to 35.0% of sales. Same-store sales grew 4%, though total sales rose just 0.7%.

The improvement relies heavily on expense reductions, lower payroll, and store closures rather than robust revenue growth. Fourth-quarter sales declined 3.4% to $150.0 million, and comps were flat, underscoring demand pressures and a still-challenging customer environment.

Management plans to open up to 10 stores and close up to 40 in 2026, while citing economic uncertainty and pressure on customer disposable income. Subsequent filings for fiscal 2026 will clarify whether margin gains are sustainable alongside healthier, broad-based sales growth.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Understanding 8-K Material Events →

FALSE 0000018255 0000018255 2026-03-19 2026-03-19

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

450 Fifth Street NW

Washington, D.C. 29549

Form

8-K/A

(Amendment No. 1)

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):

March 19, 2026

THE CATO CORPORATION

(Exact Name of Registrant as Specified in Its Charter)

Delaware

1-31340

56-0484485

(State or Other Jurisdiction

of Incorporation

(Commission

File Number)

(IRS Employer

Identification No.)

8100 Denmark Road

,

Charlotte

,

North Carolina

(Address of Principal Executive Offices)

28273-5975

(Zip Code)

(704)

554-8510

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant

under any of the following provisions:

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a -12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A - Common Stock, par value $.033 per share

CATO

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities

Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for

complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

2

THE CATO CORPORATION

Explanatory Note

The Cato Corporation Inc. (the

“Company”

) filed a Current Report on Form 8-K on March 23, 2026 (the

“Initial

Report”

). This amendment (the

“Amended Report”

) to the Initial Report amends and restates in its entirety the press

release attached as exhibit 99.1 (the “Original Press Release”) to the Initial Report solely to correct a typographical

error in the date of the current year balance sheet included in the Original Press Release. The error misidentified the

current year balance sheet date as November 1, 2025 rather than the correct date of January 31, 2026. Except for

this correction to Exhibit 99.1, this Amended Report does not amend or update any other information set forth in the

Initial Report.

Item 2.02. Results of Operations and Financial Condition.

On March 19, 2026, the Company issued the Original Press Release announcing its financial results for the fourth

quarter ending January 31, 2026. A copy of the press release, as corrected, is attached as Exhibit 99.1 and

incorporated by reference herein.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit 99.1 - Press Release issued March 19, 2026, as corrected

Exhibit 104 – Cover Page Interactive Data File (embedded within Inline XBRL document)

3

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this

report to be signed on its behalf by the undersigned thereunto duly authorized.

THE CATO CORPORATION

March 25, 2026

/s/ John P. D. Cato

Date

John P. D. Cato

Chairman, President and

Chief Executive Officer

March 25, 2026

/s/ Charles D. Knight

Date

Charles D. Knight

Executive Vice President

Chief Financial Officer

4

5

Exhibit Index

Exhibit

Exhibit

No.

99.1 - Press Release issued March 19, 2026, as corrected

99.1

104 Cover page Interactive Data File (embedded within Inline

XBRL document)

104

EXHIBIT 99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE

For Further Information Contact:

Charles D. Knight

Executive Vice President

Chief Financial Officer

InvestorRelations@catocorp.com

CATO REPORTS 4Q AND FULL YEAR LOSS

CHARLOTTE, N.C. (March 19, 2026) – 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 (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%

Income Before Income Taxes

(11,924)

-7.9%

(13,722)

-8.8%

(7,500)

-1.2%

(16,113)

-2.5%

Income Tax Expense

(1,063)

-0.7%

330

0.2%

(1,591)

-0.2%

1,944

0.3%

Net Income (Loss)

$

(10,861)

-7.2%

$

(14,052)

-9.0%

$

(5,909)

-0.9%

$

(18,057)

-2.8%

Basic Earnings Per Share

$

(0.55)

$

(0.74)

$

(0.31)

$

(0.97)

Diluted Earnings 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

FAQ

How did Cato (CATO) perform in the fourth quarter of fiscal 2025?

Cato reported a fourth-quarter net loss of $10.7 million, or ($0.55) per diluted share. This compares with a loss of $14.1 million, or ($0.74) per share, as sales declined 3.4% to $150.0 million and same-store sales were flat.

What were Cato (CATO) full-year fiscal 2025 results?

For fiscal 2025, Cato posted a net loss of $5.9 million, or ($0.31) per diluted share. That improved from a $18.1 million net loss in 2024, as sales inched up to $646.8 million and year-to-date same-store sales increased 4%.

How did Cato’s margins and expenses change in 2025?

Cato’s full-year gross margin rose from 32.0% of sales in 2024 to 33.3% in 2025. Selling, general and administrative expenses declined to 35.0% of sales from 36.0%, helped by lower payroll, closed-store and impairment costs, with SG&A dollars falling by $5.0 million.

What store footprint changes did Cato (CATO) make in 2025?

During 2025, Cato closed 48 stores, ending the year with 1,069 stores in 31 states, down from 1,117 locations. For 2026, the company plans to open up to 10 new stores and close up to 40 underperforming stores as leases expire.

Why did Cato file an amended current report on its earnings release?

The company filed an amended report solely to correct a typographical error in the balance sheet date. The original press release misidentified the current year balance sheet date as November 1, 2025; the corrected date is January 31, 2026. No other information was changed.

What outlook did Cato (CATO) provide for 2026?

Management said its 2026 outlook is tempered by economic uncertainties and pressure on customers’ disposable income. Cato plans to improve merchandise assortments, leverage technology investments in stores and distribution centers, and continue emphasizing customer service while managing its store base.

Filing Exhibits & Attachments

4 documents

Press Releases

• EX-99.1 EX-99.1 59.5 KB

Other Documents

• EX-101 EX-101.SCH 1.8 KB
• EX-101 EX-101.LAB 14.0 KB
• EX-101 EX-101.PRE 10.1 KB