Shares of The Cato Corporation (CATO) have decreased by 5.1% since the company’s earnings report for the quarter ending January 31, 2026, underperforming the S&P 500, which declined 0.7% in the same timeframe. Cato reported a fourth-quarter net loss of 55 cents per share, an improvement from a loss of 74 cents per share a year prior. The company’s quarterly retail sales fell 3.4% to $150 million, and total revenues, including other income sources, decreased to $151.7 million from $157.9 million.
For the full fiscal year, retail sales rose 0.7% to $646.8 million, with same-store sales increasing by 4%. Cato’s annual net loss narrowed significantly to $5.9 million from $18.1 million, and gross margin improved to 33.3% from 32% due to reduced payroll and operational costs. Looking ahead, the company plans to open up to 10 new stores while closing up to 40 underperforming locations as part of its strategy to optimize its footprint amidst economic uncertainties.
