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CATO

The Cato Corporation

CATO

The Cato Corporation • NYSE
$3.50 ▲ 0.29% (+0.01)
Market Cap $65.92 M
52w High $4.92
52w Low $2.19
Dividend Yield 0.17%
P/E -7.29
Volume 11.20K
Outstanding Shares 18.83M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $155.402M ▼ $56.974M ▼ $-5.189M ▼ -3.339% ▼ $-0.28 ▼ $-3.908M ▼
Q2-2025 $176.509M ▲ $57.371M ▲ $6.513M ▲ 3.69% ▲ $0.37 ▲ $9.064M ▲
Q1-2025 $170.242M ▲ $55.325M ▼ $3.117M ▲ 1.831% ▲ $0.17 ▲ $6.801M ▲
Q4-2024 $157.909M ▲ $58.68M ▲ $-14.052M ▲ -8.899% ▲ $-0.73 ▲ $-11.011M ▲
Q3-2024 $146.17M $57.876M $-15.274M -10.449% $-0.79 $-12.015M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $78.973M ▼ $450.232M ▲ $282.588M ▲ $167.644M ▼
Q2-2025 $90.775M ▲ $436.886M ▼ $264.705M ▼ $172.181M ▲
Q1-2025 $79.955M ▲ $440.806M ▼ $275.889M ▼ $164.917M ▲
Q4-2024 $77.702M ▼ $452.361M ▲ $290.065M ▲ $162.296M ▼
Q3-2024 $86.21M $424.405M $247.306M $177.099M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-5.189M ▼ $0 ▼ $0 ▲ $0 ▲ $-36.9M ▼ $0 ▼
Q2-2025 $6.832M ▲ $11.772M ▲ $-8.833M ▼ $-60K ▲ $2.879M ▼ $10.429M ▲
Q1-2025 $3.309M ▲ $3.868M ▲ $7.948M ▲ $-873K ▲ $10.943M ▲ $2.849M ▲
Q4-2024 $-14.052M ▲ $-6.479M ▲ $7.465M ▼ $-1.479M ▲ $-493K ▲ $-7.842M ▲
Q3-2024 $-15.074M $-22.102M $14.827M $-3.48M $-10.755M $-23.812M

Revenue by Products

Product Q3-2022Q4-2022Q1-2023Q4-2023
Credit Card
Credit Card
 $0 ▲$0 ▲$10.00M ▲$20.00M ▲
ReportableSegmentsMemberCredit
ReportableSegmentsMemberCredit
 $0 ▲$0 ▲$0 ▲$0 ▲
ReportableSegmentsMemberRetail
ReportableSegmentsMemberRetail
 $180.00M ▲$180.00M ▲$0 ▼$0 ▲

Five-Year Company Overview

Income Statement

Income Statement Sales bounced back strongly after the pandemic and then have drifted lower for several years in a row. Profitability has slipped from a solid profit in 2021 to small but persistent losses more recently, as rising costs and discounting seem to have squeezed margins. Overall, the business looks stuck around break‑even, with little sign in these figures of sustained earnings momentum.

Balance Sheet

Balance Sheet The company still has a straightforward, mostly traditional retail balance sheet: moderate assets, modest debt, and a shrinking equity base. Cash on hand has not grown, while book value has edged down as losses accumulate, leaving a thinner financial cushion than a few years ago. Debt has been trimmed somewhat, but the drop in equity means the balance sheet is gradually becoming less robust, even if not overly stretched yet.

Cash Flow

Cash Flow Cash generation from the core business has been inconsistent, with only one recent year showing clearly healthy operating cash flow. Free cash flow has been slightly negative in most years despite fairly restrained spending on new stores and equipment, which suggests operational weakness rather than heavy investment is the main drag. This pattern leaves less internal cash to fund upgrades, digital initiatives, or shareholder returns without drawing on the balance sheet.

Competitive Edge

Competitive Edge Cato competes in a crowded, discount‑focused apparel market but has carved out a niche with value‑oriented women’s fashion in smaller, often underserved towns. Its large store base, private‑label brands, and focus on familiar, budget‑friendly styles give it some loyalty with its core customer. At the same time, it faces intense pressure from big‑box retailers, fast‑fashion chains, and online‑only players, making it hard to grow or raise prices without losing traffic.

Innovation and R&D

Innovation and R&D The company’s approach to innovation is practical rather than cutting‑edge. It has built basic e‑commerce sites, improved inventory and supply‑chain systems, and fine‑tuned merchandise selection, but there is little sign of heavy investment in advanced technology or data‑driven retailing. Future progress will likely come from gradual improvements in the online experience, better product assortments, and careful pruning of weaker stores, rather than bold, transformative bets.

Summary

Cato is a mature value retailer that knows its niche but is struggling to turn that positioning into steady profits. Revenues have softened since their post‑pandemic rebound, margins have narrowed, and recent years show small losses and uneven cash flow. The balance sheet is still serviceable but slowly weakening as equity erodes and cash does not build. Its advantage lies in focused, lower‑income markets, private labels, and a long‑standing store network; its challenge is adapting this model to a tougher, more online‑driven apparel landscape without the benefit of strong growth or abundant free cash to invest. Overall, the story is one of stability under pressure, with execution and cost control doing most of the work to offset structural headwinds in the sector.

NEWS

November 20, 2025 · 7:00 AM UTC

CATO REPORTS 3Q RESULTS

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