CATO REPORTS 3Q RESULTS

PR Newswire

CHARLOTTE, N.C., Nov. 20, 2025

THE CATO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED)
FOR THE PERIODS ENDED NOVEMBER 1, 2025 AND NOVEMBER 2, 2024
(Dollars in thousands, except per share data)

	Quarter Ended						Nine Months Ended

	November 1,		%	November 2,		%	November 1,		%	November 2,		%
	2025		Sales	2024		Sales	2025		Sales	2024		Sales

REVENUES
Retail sales	$	153,739	100.0 %	$	144,642	100.0 %	$	496,811	100.0 %	$	486,848	100.0 %
Other revenue (principally finance,
late fees and layaway charges)		1,663	1.1 %		1,528	1.1 %		5,342	1.1 %		5,049	1.0 %

Total revenues		155,402	101.1 %		146,170	101.1 %		502,153	101.1 %		491,897	101.0 %

GROSS MARGIN (Memo)		49,222	32.0 %		41,687	28.8 %		171,509	34.5 %		162,266	33.3 %

COSTS AND EXPENSES, NET
Cost of goods sold		104,517	68.0 %		102,955	71.2 %		325,302	65.5 %		324,582	66.7 %
Selling, general and administrative		56,974	37.1 %		57,876	40.0 %		169,670	34.2 %		172,809	35.5 %
Depreciation		2,444	1.6 %		2,737	1.9 %		7,532	1.5 %		7,106	1.5 %
Interest and other income		(2,181)	-1.4 %		(2,646)	-1.8 %		(4,775)	-1.0 %		(10,209)	-2.1 %

Costs and expenses, net		161,754	105.2 %		160,922	111.3 %		497,729	100.2 %		494,288	101.5 %


Income (Loss) Before Income Taxes		(6,352)	-4.1 %		(14,752)	-10.2 %		4,424	0.9 %		(2,391)	-0.5 %

Income Tax (Benefit) Expense		(1,163)	-0.8 %		322	0.2 %		(528)	-0.1 %		1,614	0.3 %

Net Income (Loss)	$	(5,189)	-3.4 %	$	(15,074)	-10.4 %	$	4,952	1.0 %	$	(4,005)	-0.8 %


Basic Earnings Per Share	$	(0.28)		$	(0.79)		$	0.25		$	(0.24)


Diluted Earnings Per Share	$	(0.28)		$	(0.79)		$	0.25		$	(0.24)

THE CATO CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)

	November 1,		February 1,
	2025		2025
	(Unaudited)		(Unaudited)

ASSETS
Current Assets
Cash and cash equivalents	$	22,769	$	20,279
Short-term investments		56,204		57,423
Restricted cash		2,675		2,799
Accounts receivable - net		26,093		24,540
Merchandise inventories		94,065		110,739
Other current assets		8,603		7,406

Total Current Assets		210,409		223,186

Property and Equipment - net		55,912		60,326

Other Assets		20,650		19,979

Right-of-Use Assets, net		163,261		148,870

TOTAL	$	450,232	$	452,361

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities	$	109,825	$	130,684

Current Lease Liability		42,262		57,555

Noncurrent Liabilities		12,782		13,485

Lease Liability		117,719		88,341

Stockholders' Equity		167,644		162,296

TOTAL	$	450,232	$	452,361

/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. CHARLOTTE, N.C.Nov. 20, 2025

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 atwww.catofashions.com www.shopversona.com

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 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

SOURCE The Cato Corporation