The Cato (CATO) Q4 2025 earnings summary

Executive summary

• Reported a net loss of ($14.1) million or ($0.74) per diluted share for Q4 2024, improving from a net loss of ($23.4) million or ($1.14) per share in Q4 2023.

• Full-year 2024 net loss was ($18.1) million or ($0.97) per share, compared to ($23.9) million or ($1.17) per share in 2023.

• Sales for Q4 2024 were $155.3 million, down 10.0% from Q4 2023; full-year sales decreased 8.3% to $642.1 million.

• Same-store sales declined 0.8% in Q4 and 3.1% for the year on a comparable basis.

• Store count reduced to 1,117 as of February 1, 2025, with 62 closures and 1 opening during 2024.

Financial highlights

• Q4 gross margin fell to 28.0% from 31.0% last year; full-year gross margin decreased to 32.0% from 33.7%.

• Q4 SG&A expenses as a percent of sales improved to 37.8% from 39.2%; full-year SG&A rate slightly decreased to 36.0%.

• Q4 income tax expense was $0.3 million, down from $10.9 million last year due to prior non-cash valuation allowance.

• Cash and cash equivalents at year-end were $20.3 million, down from $23.9 million a year ago.

• Stockholders' equity declined to $162.3 million from $192.3 million year-over-year.

Outlook and guidance

• Cautious outlook for 2025 due to economic uncertainty, new tariffs, and potential for additional tariffs.

• Plans to open up to 15 new stores and close up to 50 underperforming stores in 2025; closures expected to have minimal financial impact.

• Ongoing focus on expense reduction, including elimination of ~40 corporate positions and further distribution and freight cost cuts.

• Continued initiatives to improve merchandise assortment and introduce new offerings.