The Cato Corporation reported net income of $6.8 million or $0.35 per diluted share for the second quarter ended August 2, 2025.
Sales for the second quarter reached $174.7 million, marking a 5% increase from the previous year.
The company attributes the sales improvement to a 9% same-store sales increase compared to 2024.
Sales Growth
Sales increased by 5% in the second quarter compared to the previous year.
Profitability
Net income for the quarter was $6.8 million, showing significant improvement from the same period last year.
Expense Management
The company managed expenses well with lower distribution costs and decreased SG&A expenses.
Store Closures
Eight stores were closed during the quarter, impacting the total number of stores compared to the previous year.
Gross Margin
Gross margin increased from 34.6% to 36.2% in the quarter due to lower distribution costs.
- The company's sales trend improved during the second quarter attributed to supply chain disruptions impacting 2024 sales.
- The management expects challenges in the back half of 2025 due to uncertainties related to tariffs and potential impacts on product acquisition costs.
The Cato Corporation showed strong performance in the second quarter with sales growth and improved profitability. The company's focus on expense management and gross margin improvement are noteworthy.