0001562762-26-000041
SEC filingThe Cato Corporation (CATO) reported total revenues of $653.8 million for fiscal year 2025 ending January 31, 2026, comprising $646.8 million in retail sales and $7.0 million in other revenue from finance charges, late fees, and layaway. The company posted a net loss of $5.9 million, or $0.00 basic and diluted earnings per share, with no dividends paid. Key expenses included cost of goods sold at $431.6 million, selling, general and administrative expenses at $226.3 million, and depreciation at $10.0 million, leading to costs and expenses net of $661.3 million and a loss before income taxes of $7.5 million. A tax benefit of $1.6 million partially offset the loss, resulting in comprehensive loss of $5.8 million. On the balance sheet, total assets stood at $421.4 million, with current assets of $193.3 million including $16.8 million cash and equivalents and $56.9 million short-term investments. Stockholders' equity was $157.3 million. Cash flows showed operating activities using $1.5 million, investing $1.3 million, and financing $0.9 million, for a net decrease of $3.6 million in cash, cash equivalents, and restricted cash. The company operated 1,069 stores across 31 states, down from 1,117 at FY start after closing 48 locations. Credit and layaway sales represented 6% of retail sales.
The Cato Corporation recorded total revenues of $653.8 million for FY2025 ending January 31, 2026, driven by $646.8 million retail sales and $7.0 million other revenue. The company reported a net loss of $5.9 million, or -$0.00 per basic and diluted share, compared to no prior year figures in the filing. Loss before income taxes was -$7.5 million after costs and expenses net of $661.3 million, including $431.6 million COGS, $226.3 million SG&A, and $10.0 million depreciation. Income tax benefit was -$1.6 million. Comprehensive loss totaled -$5.8 million, including $121K net unrealized gain on securities. Balance sheet showed total assets $421.4 million and equity $157.3 million. Store count ended at 1,069 after closing 48 locations.
Revenues totaled $653.8 million, with retail sales at $646.8 million and other revenue (finance charges, late fees, layaway) at $7.0 million. Credit and layaway sales were 6% of retail sales. The company operates two reportable segments: Retail and Credit, per Note 13, but no segment-specific financial metrics disclosed. Merchandise sourced from ~560 suppliers, top vendor 14% of purchases. Stores: 1,069 in 31 states, primarily southeast U.S., averaging 4,500 sq ft in strip centers.
No explicit gross or operating margins stated. Costs included COGS $431.6 million (exclusive of depreciation), SG&A $226.3 million (exclusive of depreciation), depreciation $10.0 million, interest expense $115K, offset by interest/other income $6.7 million. Bad debt expense was 4.9% of credit sales. Advertising expenditures 0.8% of retail sales.
Net cash used in operating activities: -$1.5 million, with net loss -$5.9 million adjusted for depreciation $10.0 million, share-based comp $1.7 million, inventory increase -$27.0 million, payables/accruals decrease -$30.5 million. Investing: -$1.3 million (capex $3.8M, short-term investments net -$1.6M, other sales -$867K). Financing: -$851K (stock repurchase $995K, offset by ESPP $144K). Net decrease in cash, equivalents, restricted cash: -$3.6 million; ending $23.8 million. Balance sheet: current assets $193.3 million (cash $16.8M, investments $56.9M, inventories $83.7M), property net $53.7M, ROU assets $153.9M. Current liabilities $155.9M, noncurrent lease $96.9M, other $11.3M, equity $157.3M.
No specific management guidance provided in the excerpted MD&A. Strategic focus on value pricing, strip center locations, customer service, and credit/layaway programs. Risks include supply chain disruptions, inflation, competition, high interest rates impacting discretionary spending, store closures, and cybersecurity. Company suspended dividends in November 2024. Continues store optimization, closing underperformers.