CATO 8-K
Cato Corp (CATO)
8-K
2025-08-26
For: 2025-08-21
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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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 August 21, 2025 The Cato Corporation issued a press release regarding its financial results for the second quarter
ending August 2, 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.
August 26, 2025
/s/ John P. D. Cato
Date
John P. D. Cato
Chairman, President and
Chief Executive Officer
August 26, 2025
/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 2Q RESULTS
CHARLOTTE, N.C. (August 21, 2025) – The Cato Corporation (NYSE: CATO) today reported net income of $6.8
million or $0.35 per diluted share for the second quarter ended August 2, 2025, compared to net income of $0.1 million or
$0.01 per diluted share for the second quarter ended August 3, 2024.
Sales for the second quarter ended August 2, 2025 were $174.7 million, or an increase of 5% from sales of $166.9 million
for the second quarter ended August 3, 2024 primarily due to a 9% same-store sales increase for the quarter compared to
2024.
For the six months ended August 2, 2025, the Company reported net income of $10.1 million or $0.51 per diluted share,
compared to net income of $11.1 million or $0.54 for the six months ended August 3, 2024. Sales for the six months
ended August 2, 2025 were $343.1 million, an increase of 0.3% from sales of $342.2 million for the six months ended
August 3, 2024 primarily due to a 4% same-store sales increase compared to 2024, mostly offset by the impact of closed
stores.
“Our sales trend continued to improve during the second quarter. We attribute this improvement in part due to 2024 sales
being impacted by supply chain disruptions,” stated John Cato, Chairman, President, and Chief Executive Officer. “We
will continue to tightly manage our expenses as we anticipate the back half of 2025 to be challenging due to the continued
uncertainty regarding tariffs and the potential negative impact on our product acquisition costs.”
Gross margin increased from 34.6% to 36.2% of sales in the quarter due to lower distribution and buying costs, partially
offset by lower merchandise margins. SG&A expenses as a percent of sales decreased from 34.9% to 32.8% of sales
during the quarter primarily due to lower payroll and insurance costs, partially offset by higher advertising and general
corporate costs. Income tax benefit for the quarter was $0.3 million versus an income tax expense of $0.6 million in the
prior year.
Year -to-date gross margin increased from 35.2% of sales to 35.6% primarily due to lower distribution and buying costs,
partially offset by lower merchandise margins. Year-to-date SG&A expenses were 32.8% as a percent of sales versus
33.6% in the prior year primarily due to lower payroll and insurance costs, partially offset by higher advertising expenses
and general corporate costs. Income tax expense for the first half decreased to $0.6 million from $1.3 million last year.
During the second quarter ended August 2, 2025, the Company closed eight stores. As of August 2, 2025, the Company
had 1,101 stores in 31 states, compared to 1,166 stores in 31 states as of August 3, 2024.
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 interest rates, inflation or other factors that may
affect our customers’ discretionary spending or our costs 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, or continuation of negative trends 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, regulations or government policies 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;
underperformance or other factors that may lead to, or affect the volume of, store closures; adverse weather, public
health threats (including the global coronavirus (COVID-19) outbreak), acts of war or aggression or similar conditions
that may affect our merchandise supply chain, sales or operations; inventory risks due to shifts in market demand,
including the ability to liquidate excess inventory at anticipated margins; adverse developments or volatility affecting the
financial services industry or broader financial markets; 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 August 2, 2025 AND August 3, 2024
(Dollars in thousands, except per share data)
Quarter Ended
Six Months Ended
August 2,
%
Auust 3,
%
August 2,
%
Auust 3,
%
2025
Sales
2024
Sales
2025
Sales
2024
Sales
REVENUES
$
174,653
100.0%
$
166,934
100.0%
$
343,072
100.0%
$
342,206
100.0%
1,856
1.1%
1,694
1.0%
3,679
1.1%
3,521
1.0%
176,509
101.1%
168,628
101.0%
346,751
101.1%
345,727
101.0%
GROSS MARGIN (Memo)
63,186
36.2%
57,812
32.5%
122,288
35.6%
120,579
35.2%
COSTS AND EXPENSES, NET
111,467
63.8%
109,122
67.5%
220,784
64.4%
221,627
64.8%
57,371
32.8%
58,181
39.4%
112,696
32.8%
114,933
33.6%
2,525
1.4%
2,329
1.6%
5,089
1.5%
4,369
1.3%
(1,393)
-0.8%
(1,742)
-1.0%
(2,594)
-0.8%
(7,563)
-2.2%
169,970
97.3%
167,890
107.6%
335,975
97.9%
333,366
97.4%
Income Before Income Taxes
6,539
3.7%
738
-6.6%
10,776
3.1%
12,361
3.6%
Income Tax Expense
(293)
-0.2%
643
-2.7%
635
0.2%
1,292
0.4%
Net Income (Loss)
$
6,832
3.9%
$
95
-3.9%
$
10,141
3.0%
$
11,069
3.2%
Basic Earnings Per Share
$
0.35
$
0.01
$
0.51
$
0.54
Diluted Earnings Per Share
$
0.35
$
0.01
$
0.51
$
0.54
THE CATO CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
August 2,
February 1,
2025
2025
(Unaudited)
(Unaudited)
ASSETS
Current Assets
$
34,225
$
20,279
56,550
57,423
2,675
2,799
26,152
24,540
97,273
110,739
8,941
7,406
Total Current Assets
225,816
223,186
Property and Equipment - net
57,641
60,326
Other Assets
20,201
19,979
Right-of-Use Assets, net
133,228
148,870
$
436,886
$
452,361
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
$
121,470
$
130,684
Current Lease Liability
53,877
57,555
Noncurrent Liabilities
13,340
13,485
Lease Liability
76,018
88,341
Stockholders' Equity
172,181
162,296
$
436,886
$
452,361