Sales for the fourth quarter were reported at $150.0 million, reflecting a decrease of 3.4% from $155.3 million in the previous year’s fourth quarter. Despite the decline in sales, same-store sales remained flat compared to the previous year, suggesting stability in customer demand.
For the full fiscal year 2025, Cato reported a net loss of $5.9 million, or $0.31 per diluted share, compared to a net loss of $18.1 million, or $0.97 per diluted share, in fiscal 2024. The company’s total sales for the year increased by 0.7% to $646.8 million from $642.1 million in 2024. Year-to-date same-store sales increased by 4% compared to the previous year, indicating a positive trend in customer engagement.
John Cato, Chairman, President, and Chief Executive Officer, commented on the results, stating, "Compared to 2024, our fiscal 2025 sales trend was encouraging, although 2024 was negatively impacted by supply chain interruptions and severe weather events. During 2025, we focused on improving our merchandise offering, serving the customer, controlling expenses, and leveraging investments in our store and distribution center technologies."
The company also indicated plans to open up to 10 new stores while closing up to 40 underperforming locations as leases expire, which is expected to have minimal financial impact. Cato’s gross margin for the fourth quarter increased from 28.0% of sales in 2024 to 29.2% in 2025, primarily due to decreases in payroll and occupancy costs.
Despite the improvements, the company’s outlook for 2026 remains cautious due to ongoing economic uncertainties and pressure on customers’ disposable income. Investors will be closely monitoring Cato’s performance in the upcoming quarters as the company navigates these challenges.
