Cato Corp
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Cato Corp (CATO) Stock News
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- Benzinga·
CATO REPORTS 1Q EARNINGS
CHARLOTTE, N.C. , May 21, 2026 /PRNewswire/ -- The Cato Corporation (NYSE: CATO ) today reported net income of $9.3 million or $0.47 per diluted share for the first quarter ended May 2, 2026, compared to net income of $3.3 million or $0.17 per diluted share for the first quarter ended May 3, 2025. Sales for the first quarter ended May 2, 2026 were $169.5 million, or an increase of 0.7% from sales of $168.4 million for the first quarter ended May 3, 2025. The Company's same-store sales for the quarter increased 3%. "Our results significantly benefited from the refund claim of IEEPA (International Emergency Economic Powers Act) tariffs in the quarter. Our sales trend softened as the quarter continued in part due to higher fuel prices pressuring our customers' discretionary income," said John Cato, Chairman, President and Chief Executive Officer. " For the foreseeable future we expect our sales to be negatively impacted by rising inflation, especially fuel and food prices, which will reduce our customers' discretionary income." First quarter gross margin as a percentage of sales was 37.2% in 2026 and 35.1% in 2025. The increase in gross margin as a percentage of sales is due in part to a pre-tax $5.7 million tariff refund claim partially offset by lower merchandise contribution caused in part by higher sales of marked-down goods. Selling, General and Administrative expense decreased to $53.9 million in the first quarter of 2026 from $55.3 million in 2025 due to decreases in corporate payroll expense, insurance costs and equipment maintenance partially offset by incentive compensation expense. Selling, General and Administrative expense as a percentage of sales decreased to 31.8% in 2026 compared to 32.8% in 2025. Interest and other income were $1.2 million in both 2026 and 2025. Income tax expense for the quarter decreased to $0.5 million in 2026 from $0.9 million in 202