The Cato Corporation reported a net income of 47 cents per share for the first quarter of 2026, a significant increase from 17 cents per share in the same quarter last year. Revenue rose 0.7% year-over-year to $169.5 million, while same-store sales increased by 3%. The gross margin expanded to 37.2% from 35.1%, bolstered by a pre-tax tariff refund claim of $5.7 million.
During the quarter ended May 2, 2026, the company also saw a substantial increase in net income to $9.3 million, compared to $3.3 million the previous year. Selling, general, and administrative expenses decreased to $53.9 million from $55.3 million. Cato’s total store count decreased to 1,065, down from 1,109 stores year-over-year, with a cash balance of $25.4 million at quarter-end.
Management noted that rising fuel prices are expected to pressure consumer discretionary spending, which could negatively impact future sales. The company opened two new stores and closed six during the quarter.
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