The Cato Corporation reported a net loss of $5.2 million or ($0.28) per diluted share for the third quarter ended November 1, 2025.
Sales for the third quarter were $153.7 million, showing a 6% increase from the same quarter in 2024.
Same-store sales for the quarter increased by 10% compared to 2024.
Sales Growth
Sales for the third quarter increased by 6% from the previous year, showcasing positive growth.
Gross Margin Increase
Gross margin rose from 28.8% to 32.0% of sales, attributed to lower costs compared to the prior year.
SG&A Expenses Reduction
SG&A expenses decreased as a percent of sales, primarily due to lower payroll and insurance costs.
- The positive sales trend continued into the third quarter despite challenges faced in the previous year.
- Management anticipates a challenging fourth quarter due to slowdowns in employment growth and economic conditions.
- Strategic expense and inventory management will be critical for sustaining sales growth in the upcoming quarter.
The Cato Corporation's third-quarter results reflect a resilient performance despite external challenges. By maintaining a focus on cost efficiency and sales growth strategies, the company seeks to navigate potential economic headwinds in the coming months.