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Aug 02, 2025
Cato Corp-Class A Q2 2025 Earnings Report
Cato Corp-Class A reported a strong rebound in Q2 2025, driven by higher same-store sales and improved expense management.
Key Takeaways
Cato Corp delivered a solid Q2 2025 performance with net income rising significantly to $6.8 million. Sales increased 5% YoY, boosted by a 9% same-store sales uptick. Cost control measures led to improved gross and operating margins.
Net income rose to $6.8M from $95K YoY.
Sales reached $174.7M, up 5% YoY due to 9% same-store sales growth.
Gross margin improved to 36.2% from 34.6% last year.
SG&A expenses decreased as a percent of sales, driven by lower payroll and insurance costs.
Forward Guidance
The company expects the remainder of 2025 to be challenging due to continued uncertainty surrounding tariffs and their potential impact on product acquisition costs.
Positive Outlook
- Improving sales trend in Q2 2025
- 9% same-store sales growth
- Expense management contributing to margin improvement
- Gross margin improved despite lower merchandise margins
- Year-to-date SG&A as percent of sales decreased
Challenges Ahead
- Ongoing uncertainty related to tariffs
- Potential increase in product acquisition costs
- Higher advertising and corporate expenses
- Continued impact of store closures on sales
- Macroeconomic factors affecting consumer spending
Historical Earnings Impact
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Avg. Return Before/After Earnings
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