Cato Q4 revenue falls as same-store sales remain flat

Cato

19/03/2026 11:08

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    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
  
                               
                               
 Metric    Beat/Mis  Actual    Consensu
           s                   s
                               Estimate
                               
                               
 Q4                  $150.02    
 Retail              mln       
 Sales                         
 Q4 EPS              -$0.55     
 Q4 Net              -$10.86    
 Income              mln       
 Q4 Basic            -$0.55     
 EPS                           
 Q4                  -$11.92   
 Pretax              mln       
 Profit                        
    
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)