Cato Q4 revenue falls as same-store sales remain flat

Overview

• US specialty apparel retailer's Q4 sales fell 3.4% yr/yr, same-store sales were flat

• Company reported Q4 net loss narrowed to $10.9 mln from $14.1 mln last year

• Company closed 48 stores in 2025, plans up to 40 more closures in 2026

Outlook

• Cato plans to open up to 10 new stores and close up to 40 in 2026

• Company says 2026 outlook is tempered by economic uncertainties and pressure on disposable income

• Cato to focus on merchandise assortment, technology investments and customer service in 2026

Result Drivers

• GROSS MARGIN IMPROVEMENT - Co said Q4 gross margin rose to 29.2% from 28.0% due to lower payroll and occupancy costs, partially offset by higher sales of markdown product

• LOWER SG&A EXPENSES - Q4 SG&A expenses fell $1.9 mln, mainly from lower payroll costs and reduced closed store and impairment expenses

Company press release: ID:nPn9yX5cZa

Key Details

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