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Nov 01, 2025
Cato Corp-Class A Q3 2025 Earnings Report
Cato Corp-Class A reported a narrower net loss for Q3 2025, driven by higher sales and improved gross margin.
Key Takeaways
Cato Corp-Class A posted a Q3 2025 net loss of $5.2 million as sales rose 6% year-over-year. Gross margin improved to 32.0%, reflecting lower freight and occupancy costs. SG&A expenses also declined slightly, and same-store sales rose 10%.
Net loss narrowed to $5.2 million from $15.1 million a year ago.
Quarterly sales rose 6% to $153.7 million.
Gross margin increased to 32.0%, up from 28.8% last year.
Same-store sales rose 10% for the quarter.
Forward Guidance
The company anticipates a challenging fourth quarter due to economic headwinds but remains focused on cost controls and inventory management.
Positive Outlook
- Continued positive sales trends from Q2 into Q3.
- Improved gross margin due to cost efficiencies.
- Lower SG&A expense rate.
- Same-store sales increased 10%.
- Net loss narrowed significantly from prior year.
Challenges Ahead
- Challenging outlook for Q4 due to slowing employment growth.
- Lower expected economic growth affecting consumer spending.
- Markdowns partially offset gross margin gains.
- Still operating at a net loss in Q3.
- Store count continues to decline year-over-year.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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