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Cato Corp. to close stores and cut jobs in response to financial struggles
Cato Fashions retail store Credits: Billy Blume via Dreamstime.com The Cato Corporation reported a net loss of 14.1 million dollars or 74 cents per diluted share for the fourth quarter ended February 1, 2025. Sales for the quarter of 155.3 million dollars, decreased 10 percent and comparable sales also decreased 5.1 percent. "Our fiscal 2024 sales trend was negatively impacted by continued pressure on our customers' discretionary spending levels, and a difficult third quarter which included three hurricanes and supply chain interruptions," said John Cato, chairman, president and CEO. However, Cato noted an improvement in fourth-quarter sales trends compared to the full year and third quarter. "This was partly due to improvements in our supply chain and our distribution center (DC) efficiency as we worked through our DC automation conversion issues,” he added. Looking ahead to 2025, the company remains cautious amid economic challenges, including newly implemented tariffs and uncertainty over potential additional tariffs. "In 2025, we will continue our focus on reducing expenses. To this end, we eliminated approximately 40 corporate positions in February," Cato said. As of February 3, 2024, the company operated 1,117 stores across 31 states. In the current fiscal year, it plans to open up to 15 new stores while closing up to 50 underperforming locations.
The Cato Corporation reported a net loss of 14.1 million dollars or 74 cents per diluted share for the fourth quarter ended February 1, 2025. Sales for the quarter of 155.3 million dollars, decreased 10 percent and comparable sales also decreased 5.1 percent.
"Our fiscal 2024 sales trend was negatively impacted by continued pressure on our customers' discretionary spending levels, and a difficult third quarter which included three hurricanes and supply chain interruptions," said John Cato, chairman, president and CEO.
However, Cato noted an improvement in fourth-quarter sales trends compared to the full year and third quarter. "This was partly due to improvements in our supply chain and our distribution center (DC) efficiency as we worked through our DC automation conversion issues,” he added.
Looking ahead to 2025, the company remains cautious amid economic challenges, including newly implemented tariffs and uncertainty over potential additional tariffs. "In 2025, we will continue our focus on reducing expenses. To this end, we eliminated approximately 40 corporate positions in February," Cato said.
As of February 3, 2024, the company operated 1,117 stores across 31 states. In the current fiscal year, it plans to open up to 15 new stores while closing up to 50 underperforming locations.
