Cato(US:CATO)2025-11-24 20:03Financial Performance - Cato Corporation reported a net loss of $5.2 million or ($0.28) per diluted share for Q3 2025, an improvement from a net loss of $15.1 million or ($0.79) per diluted share in Q3 2024[2][11]. - Sales for Q3 2025 were $153.7 million, a 6% increase from $144.6 million in Q3 2024, with same-store sales rising by 10%[3][11]. - For the nine months ended November 1, 2025, net income was $5.0 million or $0.25 per diluted share, compared to a net loss of $4.0 million or ($0.24) per diluted share in the same period of 2024[4][11]. - Year-to-date sales reached $496.8 million, a 2% increase from $486.8 million in the prior year, with same-store sales up by 6%[4][11]. Cost Management - Gross margin improved to 32.0% in Q3 2025 from 28.8% in Q3 2024, driven by lower freight and distribution costs[5][11]. - Year-to-date gross margin increased to 34.5% from 33.3% in the prior year, reflecting improved cost management[6][11]. - Selling, general and administrative (SG&A) expenses decreased to $57.0 million in Q3 2025, down from $57.9 million in Q3 2024, representing 37.1% of sales compared to 40.0%[5][11]. Store Operations - The company closed 16 stores year-to-date, operating 1,101 stores as of November 1, 2025, down from 1,167 stores a year earlier[7]. Tax and Economic Outlook - The tax benefit for Q3 2025 was $1.2 million, compared to a tax expense of $0.3 million in the prior year, mainly due to reduced foreign income taxes[5][11]. - Cato Corporation anticipates challenges in Q4 2025 due to expected economic slowdown and will focus on managing expenses and inventory levels[5].