Cato Corp 1Q Net Income Jumps to $9.3M, Same-Store Sales Up 3%
Cato Corp reported 1Q net income of $9.3 million ($0.47 per share), up from $3.3 million ($0.17) a year earlier, on sales of $169.5 million, a 0.7% increase. Same-store sales rose 3%, gross margin improved to 37.2% from 35.1% thanks in part to a $5.7 million tariff refund.
1. First Quarter Financial Performance
Cato Corporation reported net income of $9.3 million, or $0.47 per diluted share, for the quarter ended May 2, 2026, compared with $3.3 million, or $0.17 per share, in the prior year. Total sales reached $169.5 million, a 0.7% increase, while same-store sales rose 3%.
2. Margin Improvement Drivers
Gross margin expanded to 37.2% of sales from 35.1% a year earlier, driven partly by a pre-tax $5.7 million tariff refund claim. Selling, general and administrative expenses decreased to $53.9 million, or 31.8% of sales, reflecting lower payroll and insurance costs.
3. Store Count and Repurchases
The company repurchased 107,823 shares during the quarter and adjusted its store fleet by opening two new locations and closing six, ending the period with 1,065 stores across 31 states. Management cited high fuel and food prices as ongoing headwinds for customer discretionary spending.