Cato Reports 9% Increase in Sales for Fiscal Q2
Earnings Performance: Cato reported a significant increase in earnings per share (GAAP) to $0.35 from $0.01 in Q2 FY2025, with net income rising to $6.8 million, driven by a 9% increase in same-store sales.
Cost Management and Risks: The company improved its gross margin to 36.2% and reduced selling, general, and administrative expenses as a percentage of sales; however, management expressed caution due to ongoing tariff and supply cost uncertainties.
Store Closures and Strategy: Cato closed 8 stores during the quarter, reducing its total locations to 1,101, indicating a focus on consolidating operations rather than expanding.
Financial Outlook: Without formal guidance for future quarters, Cato's management emphasized the need for vigilant cost management amidst external pressures, including potential challenges from tariffs and sourcing costs.
Trade with 70% Backtested Accuracy
Analyst Views on CATO
About CATO
About the author
Cato Reports Reduced Year-Over-Year Loss in Q3 Fueled by Growth in Same-Store Sales
Cato Corporation's Earnings Performance: Cato Corporation reported a net loss of 28 cents per share for Q3 2025, an improvement from a loss of 79 cents per share a year earlier, while retail sales rose 6% year-over-year to $153.7 million.
Stock Market Reaction: Despite the earnings report, Cato's shares have declined 20.7% over the past month, underperforming the S&P 500 index, which rose 1.5% during the same period, indicating ongoing investor concerns.
Operational Improvements: The company achieved a gross margin increase to 32% from 28.8% due to cost reductions, although higher markdowns affected overall performance. SG&A expenses also decreased, reflecting tighter expense management.
Store Closures and Future Outlook: Cato closed 16 stores year-to-date, reducing its footprint to 1,101 stores, as part of efforts to optimize operations amid changing consumer behavior, while management anticipates challenges in the upcoming quarter due to economic factors.
Cato Reports GAAP EPS of -$0.28 and Revenue of $153.7 Million
- Q3 Financial Performance: Cato reported a Q3 GAAP EPS of -$0.28 and revenue of $153.7 million.
- Investment Outlook: The company is viewed as a turnaround play with significant near-term upside potential, receiving a "Strong Buy" rating from Seeking Alpha’s Quant.
UBS, Newmont, McKesson, and The Cato Featured in Zacks Analyst Blog
Zacks Analyst Blog Highlights: The Zacks Equity Research team has featured stocks including UBS Group AG, Newmont Corp., McKesson Corp., and The Cato Corp. in their daily research reports, emphasizing their recent performance and market outlook.
Company Performance Insights: UBS has shown strong earnings but faces litigation risks; Newmont is benefiting from growth projects despite rising production costs; McKesson is expanding margins but contends with regulatory challenges; and Cato has rebounded in earnings but faces structural headwinds.
Cato Reports Year-Over-Year Increase in Q2 Earnings Driven by Same-Store Sales Growth
Stock Performance: Cato Corporation's shares have risen 39.1% since its fiscal second-quarter results on August 2, 2025, significantly outperforming the S&P 500's 0.8% growth during the same period.
Financial Results: The company reported a net income of 35 cents per share, up from 1 cent last year, with sales increasing by 5% to $174.7 million, driven by a 9% rise in same-store sales.
Profitability Improvements: Gross margin improved to 36.2%, attributed to lower distribution and buying costs, while SG&A expenses decreased as a percentage of sales despite higher advertising costs.
Future Outlook: Management expressed caution regarding potential uncertainties in the second half of 2025 due to tariffs and inflationary pressures, while also noting ongoing store closures as part of their strategy to optimize operations.
Cato Reports 9% Increase in Sales for Fiscal Q2
Earnings Performance: Cato reported a significant increase in earnings per share (GAAP) to $0.35 from $0.01 in Q2 FY2025, with net income rising to $6.8 million, driven by a 9% increase in same-store sales.
Cost Management and Risks: The company improved its gross margin to 36.2% and reduced selling, general, and administrative expenses as a percentage of sales; however, management expressed caution due to ongoing tariff and supply cost uncertainties.
Store Closures and Strategy: Cato closed 8 stores during the quarter, reducing its total locations to 1,101, indicating a focus on consolidating operations rather than expanding.
Financial Outlook: Without formal guidance for future quarters, Cato's management emphasized the need for vigilant cost management amidst external pressures, including potential challenges from tariffs and sourcing costs.
Cato: Overview of Fiscal Q2 Earnings
Company Earnings: Cato Corp. reported earnings of $6.8 million for its fiscal second quarter.
Profit Per Share: The company announced a profit of 35 cents per share.
Revenue Figures: Cato Corp. generated revenue of $176.5 million during the same period.
Source of Information: The report was generated by Automated Insights using data from Zacks Investment Research.
Cato Reports Reduced Year-Over-Year Loss in Q3 Fueled by Growth in Same-Store Sales
Cato Corporation's Earnings Performance: Cato Corporation reported a net loss of 28 cents per share for Q3 2025, an improvement from a loss of 79 cents per share a year earlier, while retail sales rose 6% year-over-year to $153.7 million.
Stock Market Reaction: Despite the earnings report, Cato's shares have declined 20.7% over the past month, underperforming the S&P 500 index, which rose 1.5% during the same period, indicating ongoing investor concerns.
Operational Improvements: The company achieved a gross margin increase to 32% from 28.8% due to cost reductions, although higher markdowns affected overall performance. SG&A expenses also decreased, reflecting tighter expense management.
Store Closures and Future Outlook: Cato closed 16 stores year-to-date, reducing its footprint to 1,101 stores, as part of efforts to optimize operations amid changing consumer behavior, while management anticipates challenges in the upcoming quarter due to economic factors.
Cato Reports GAAP EPS of -$0.28 and Revenue of $153.7 Million
- Q3 Financial Performance: Cato reported a Q3 GAAP EPS of -$0.28 and revenue of $153.7 million.
- Investment Outlook: The company is viewed as a turnaround play with significant near-term upside potential, receiving a "Strong Buy" rating from Seeking Alpha’s Quant.
UBS, Newmont, McKesson, and The Cato Featured in Zacks Analyst Blog
Zacks Analyst Blog Highlights: The Zacks Equity Research team has featured stocks including UBS Group AG, Newmont Corp., McKesson Corp., and The Cato Corp. in their daily research reports, emphasizing their recent performance and market outlook.
Company Performance Insights: UBS has shown strong earnings but faces litigation risks; Newmont is benefiting from growth projects despite rising production costs; McKesson is expanding margins but contends with regulatory challenges; and Cato has rebounded in earnings but faces structural headwinds.
Cato Reports Year-Over-Year Increase in Q2 Earnings Driven by Same-Store Sales Growth
Stock Performance: Cato Corporation's shares have risen 39.1% since its fiscal second-quarter results on August 2, 2025, significantly outperforming the S&P 500's 0.8% growth during the same period.
Financial Results: The company reported a net income of 35 cents per share, up from 1 cent last year, with sales increasing by 5% to $174.7 million, driven by a 9% rise in same-store sales.
Profitability Improvements: Gross margin improved to 36.2%, attributed to lower distribution and buying costs, while SG&A expenses decreased as a percentage of sales despite higher advertising costs.
Future Outlook: Management expressed caution regarding potential uncertainties in the second half of 2025 due to tariffs and inflationary pressures, while also noting ongoing store closures as part of their strategy to optimize operations.
Cato Reports 9% Increase in Sales for Fiscal Q2
Earnings Performance: Cato reported a significant increase in earnings per share (GAAP) to $0.35 from $0.01 in Q2 FY2025, with net income rising to $6.8 million, driven by a 9% increase in same-store sales.
Cost Management and Risks: The company improved its gross margin to 36.2% and reduced selling, general, and administrative expenses as a percentage of sales; however, management expressed caution due to ongoing tariff and supply cost uncertainties.
Store Closures and Strategy: Cato closed 8 stores during the quarter, reducing its total locations to 1,101, indicating a focus on consolidating operations rather than expanding.
Financial Outlook: Without formal guidance for future quarters, Cato's management emphasized the need for vigilant cost management amidst external pressures, including potential challenges from tariffs and sourcing costs.
Cato: Overview of Fiscal Q2 Earnings
Company Earnings: Cato Corp. reported earnings of $6.8 million for its fiscal second quarter.
Profit Per Share: The company announced a profit of 35 cents per share.
Revenue Figures: Cato Corp. generated revenue of $176.5 million during the same period.
Source of Information: The report was generated by Automated Insights using data from Zacks Investment Research.
