Cato(US:CATO)2025-03-24 19:00Financial Performance - Cato Corporation reported a net loss of $14.1 million or $0.74 per diluted share for Q4 2024, an improvement from a net loss of $23.4 million or $1.14 per diluted share in Q4 2023[2]. - Total sales for Q4 2024 were $155.3 million, a decrease of 10.0% from $172.1 million in Q4 2023; on a comparable 13-week basis, total sales decreased 5.1%[3]. - For the full year 2024, sales decreased 8.3% to $642.1 million from $700.3 million in 2023, with same-store sales down 3.1%[3]. - Gross margin for Q4 2024 decreased to 28.0% from 31.0% in Q4 2023, attributed to increased markdowns and higher distribution costs[4]. - Income tax expense for Q4 2024 was $0.3 million, significantly lower than $10.9 million in Q4 2023, due to a non-cash valuation allowance recorded last year[4]. Expenses and Cost Management - Selling, general and administrative (SG&A) expenses as a percentage of sales decreased from 39.2% in Q4 2023 to 37.8% in Q4 2024, with total SG&A expenses down by $8.8 million[4]. - The company eliminated approximately 40 corporate positions in February 2025 as part of its focus on reducing expenses[5]. Asset Management - Cato Corporation's total current assets decreased to $223.2 million as of February 1, 2025, down from $243.1 million as of February 3, 2024[11]. - Cato Corporation's stockholders' equity decreased to $162.3 million as of February 1, 2025, compared to $192.3 million as of February 3, 2024[11]. Future Plans - The company plans to open up to 15 new stores and close up to 50 underperforming stores in 2025, anticipating minimal financial impact from these closures[6].