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The Cato Corporation (CATO) reported a third-quarter net loss of $5.2 million, an improvement from a net loss of $15.1 million in the year-ago period. The net loss per share shrank to 28 cents, up from 79 cents year-over-year, as retail sales rose 6% to $153.7 million driven by a 10% increase in same-store sales.
As of Nov. 1, 2025, Cato closed 16 stores, bringing its total to 1,101 across 31 states. This marks a decrease from 1,167 stores a year earlier, reflecting the company’s efforts to optimize its retail footprint amid changing consumer trends. Additionally, the company’s gross margin improved to 32% from 28.8%, despite challenges from markdowns due to price sensitivity.
Despite a recent gain of 1.2% in shares since the earnings report, Cato’s stock has experienced a significant decline of 20.7% over the past month, contrasting with a 1.6% drop in the S&P 500 index during the same period.
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