CATO 8-K
Cato Corp (CATO)
8-K
2026-03-23
For: 2026-03-19
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
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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:
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Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities
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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 March 19, 2026, The Cato Corporation issued a press release regarding its financial results for the fourth quarter
ending January 31, 2026. 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.
March 23, 2026
/s/ John P. D. Cato
Date
John P. D. Cato
Chairman, President and
Chief Executive Officer
March 23, 2026
/s/ Charles D. Knight
Date
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 4Q AND FULL YEAR LOSS
CHARLOTTE, N.C. (March 19, 2026) – The Cato Corporation (NYSE: CATO) today reported a net loss of ($10.7)
million or ($0.55) per diluted share for the fourth quarter ended January 31, 2026, compared to a net loss of ($14.1)
million or ($0.74) per diluted share for the fourth quarter ended February 1, 2025.
Full-year fiscal 2025 net loss
was ($5.9) million or ($0.31) per diluted share compared to a net loss of ($18.1) million or ($0.97) per diluted share for
2024.
Sales for the fourth quarter ended January 31, 2026 were $150.0 million, a decrease of 3.4% from sales of $155.3 million
for the fourth quarter ended February 1, 2025. Same-store sales for the fourth quarter were flat compared to 2024.
For the
year, the Company's sales increased 0.7% to $646.8 million from 2024 sales of $642.1 million.
Year-to-date same-store
sales increased 4% compared to 2024.
"Compared to 2024,
our fiscal 2025 sales trend was encouraging although 2024 was negatively impacted by supply chain
interruptions which caused late merchandise to our stores, as well as more severe weather events including three
hurricanes,
” said John Cato, Chairman, President, and Chief Executive Officer.
“During 2025 we continued to focus on
improving our merchandise offering, serving the customer, controlling expenses, and leveraging the investments in our
store and distribution center technologies
.
”
Fourth-quarter gross margin increased from 28.0% of sales in 2024 to 29.2% of sales in 2025 primarily due to decreases
in payroll and occupancy costs, partially offset by higher sales of markdown product.
Selling, general and administrative
(SG&A) expenses decreased $1.9 million in the quarter. SG&A as a percent of sales increased slightly from 37.8% in
2024 to 37.9% in 2025 during the quarter.
Income tax benefit for the quarter was $1.1 million compare
d to expense of
$0.3 million last year.
For the full year 2025, gross margin increased from 32.0% of sales in 2024 to 33.3% of sales in 2025. This increase was in
part due to
lower payroll, distribution, and
freight costs, partially offset by higher sales of markdown product. SG&A
expenses decreased to 35.0% of sales in 2025 compared to 36.0% of sales in 2024. The SG&A decrease was primarily due
to
lower payroll costs, closed store, and impairment expenses.
For the year,
SG&A expenses decreased $5.0 million.
Income tax benefit for the year was $1.6 million compared to expense of $1.9 million las
t year.
“As we look ahead to 2026, we are focused on improving our merchandise assortment including new product offerings,
leveraging our investments in technology, especially in our stores and the distribution center, while continuing to provide
excellent customer service,” stated Mr. Cato. “Our 2026 outlook is tempered by the current economic uncertainties and
continued pressure on our customers’ disposable income.”
During 2025, the Company closed 48 stores. As of January 31, 2026, the Company operated 1,069 stores in 31 states,
compared to 1,117 stores in 31 states as of February 1, 2025. During 2026, the Company plans to open up to 10 new
stores and close up to 40 underperforming stores as leases expire. These store closings are anticipated to have minimal
financial impact.
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 events, risks or contingencies 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, inflation, 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 and taxes; 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 open new stores in attractive locations and the
ability of any such new stores to grow and perform as expected; underperformance or other factors that may lead to a
continuation or acceleration of store closures and negative affect on the Company’s profitability; adverse weather, public
health threats, acts of war or aggression 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 January 31, 2026 AND February 1, 2025
(Dollars in thousands, except per share data)
Quarter Ended
Twelve Months Ended
January 31,
%
February 1,
%
January 31,
%
February 1,
%
2
0
2
6
Sales
2
0
2
5
Sales
2
0
2
6
Sales
2
0
2
5
Sales
REVENUES
$
150,019
100.0%
$
155,292
100.0%
$
646,830
100.0%
$
642,140
100.0%
1,640
1.1%
2,617
1.7%
6,982
1.1%
7,666
1.2%
151,659
101.1%
157,909
101.7%
653,812
101.1%
649,806
101.2%
GROSS MARGIN (Memo)
43,770
29.2%
43,434
28.0%
215,279
33.3%
205,700
32.0%
COSTS AND EXPENSES, NET
106,249
70.8%
111,858
72.0%
431,551
66.7%
436,440
68.0%
56,792
37.9%
58,680
37.8%
226,462
35.0%
231,489
36.0%
2,454
1.6%
2,711
1.7%
9,986
1.5%
9,817
1.5%
(1,912)
-1.3%
(1,618)
-1.0%
(6,687)
-1.0%
(11,827)
-1.8%
163,583
109.0%
171,631
110.5%
661,312
102.2%
665,919
103.7%
Income Before Income Taxes
(11,924)
-7.9%
(13,722)
-8.8%
(7,500)
-1.2%
(16,113)
-2.5%
Income Tax Expense
(1,063)
-0.7%
330
0.2%
(1,591)
-0.2%
1,944
0.3%
Net Income (Loss)
$
(10,861)
-7.2%
$
(14,052)
-9.0%
$
(5,909)
-0.9%
$
(18,057)
-2.8%
Basic Earnings Per Share
$
(0.55)
$
(0.74)
$
(0.31)
$
(0.97)
Diluted Earnings Per Share
$
(0.55)
$
(0.74)
$
(0.31)
$
(0.97)
THE CATO CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
November 1,
February 1,
2025
2025
(Unaudited)
(Unaudited)
ASSETS
Current Assets
$
16,788
$
20,279
56,859
57,423
2,675
2,799
25,462
24,540
83,696
110,739
7,787
7,406
Total Current Assets
193,267
223,186
Property and Equipment - net
53,748
60,326
Other Assets
20,471
19,979
Right-of-Use Assets, net
153,933
148,870
$
421,419
$
452,361
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
$
102,385
$
130,684
Current Lease Liability
53,507
57,555
Noncurrent Liabilities
11,272
13,485
Lease Liability
96,941
88,341
Stockholders' Equity
157,314
162,296
$
421,419
$
452,361