Cato Corporation Narrows Q4 Loss to $10.7M, YTD Sales Up 0.7%
Fourth-quarter net loss narrowed to $10.7 million ($0.55 per diluted share) from $14.1 million a year earlier, on sales of $150.0 million. Full-year sales rose 0.7% to $646.8 million and net loss improved to $5.9 million, while same-store sales gained 4% year-over-year.
1. Q4 Financial Results
Cato reported a fourth-quarter net loss of $10.7 million, or $0.55 per diluted share, compared with a $14.1 million loss in the prior year. Quarterly sales totaled $150.0 million, down 3.4%, with same-store sales essentially flat versus last year.
2. Full-Year Performance
For fiscal 2025, Cato’s sales increased 0.7% to $646.8 million from $642.1 million, while net loss narrowed to $5.9 million, or $0.31 per diluted share, versus an $18.1 million loss in 2024. Year-to-date same-store sales rose 4%.
3. Margin and Expense Improvements
Gross margin expanded to 29.2% in Q4 from 28.0% a year earlier, driven by lower payroll and occupancy costs, and full-year gross margin rose to 33.3% from 32.0%. SG&A expenses fell by $1.9 million in the quarter and $5.0 million for the year, partly reflecting closed store and lower payroll costs.
4. Store Portfolio Changes and Outlook
During fiscal 2025 Cato closed 48 stores, ending with 1,069 locations, and plans to open up to 10 new units and close up to 40 underperformers in 2026. Management expects minimal financial impact from these changes while noting economic uncertainties may pressure consumer spending.