Business
CATO REPORTS 2Q RESULTS
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.
About this update from Cato Corporation (the)
[{"type":"text","content":"CHARLOTTE, N.C., Aug. 21, 2025 /PRNewswire/ -- 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.","length":315,"tagName":"p"},{"type":"text","content":"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.","length":246,"tagName":"p"},{"type":"text","content":"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.","length":481,"tagName":"p"},{"type":"text","content":""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." ","length":498,"tagName":"p"},{"type":"text","content":"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.","length":503,"tagName":"p"},{"type":"text","content":"Year-to-date gross margin increased from 35.2% ...