CATO 8-K
Cato Corp (CATO)
8-K
2025-11-24
For: 2025-11-20
View Original
Added on
April 11, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
450 Fifth Street NW
Washington, D.C. 29549
Form
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
(Exact Name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction
of Incorporation
(Commission
File Number)
(IRS Employer
Identification No.)
,
,
(Address of Principal Executive Offices)
(Zip Code)
(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:
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
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
Item 2.02. Results of Operations and Financial Condition
On November 20, 2025, The Cato Corporation issued a press release regarding its financial results for the third
quarter ending November 1, 2025. A copy of this press release is hereby incorporated as Exhibit 99.1 hereto.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
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.
November 24, 2025
/s/ John P. D. Cato
Date
John P. D. Cato
Chairman, President and
Chief Executive Officer
November 24, 2025
/s/ Charles D. Knight
D
ate
Charles D. Knight
Executive Vice President
Chief Financial Officer
4
Exhibit Index
Exhibit
Exhibit
No.
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:
CATO REPORTS 3Q RESULTS
CHARLOTTE, N.C. (November 20, 2025) – 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.
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 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,
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.
* * *
THE CATO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (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
$
153,739
100.0%
$
144,642
100.0%
$
496,811
100.0%
$
486,848
100.0%
1,663
1.1%
1,528
1.1%
5,342
1.1%
5,049
1.0%
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
104,517
68.0%
102,955
71.2%
325,302
65.5%
324,582
66.7%
56,974
37.1%
57,876
40.0%
169,670
34.2%
172,809
35.5%
2,444
1.6%
2,737
1.9%
7,532
1.5%
7,106
1.5%
(2,181)
-1.4%
(2,646)
-1.8%
(4,775)
-1.0%
(10,209)
-2.1%
161,754
105.2%
160,922
111.3%
497,729
100.2%
494,288
101.5%
Income Before Income Taxes
(6,352)
-4.1%
(14,752)
-10.2%
4,424
0.9%
(2,391)
-0.5%
Income Tax 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)
-
(1)
-
-
D
iluted Earnings Per Share
$
0.35
$
0.01
$
0.51
$
0.54
THE CATO CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
November 1,
February 1,
2025
2025
(Unaudited)
(Unaudited)
ASSETS
Current Assets
$
22,769
$
20,279
56,204
57,423
2,675
2,799
26,093
24,540
94,065
110,739
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
$
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
$
450,232
$
452,361