Overview

• Cato Q2 net income rises to $6.8 mln from $0.1 mln last year

• Sales for Q2 up 5% to $174.7 mln, driven by 9% same-store sales increase

• Gross margin improved due to lower distribution and buying costs

• Company closed eight stores, reducing total to 1,101

Outlook

• Cato anticipates challenges in H2 2025 due to tariff uncertainties

• Company plans to tightly manage expenses

Result Drivers

• SAME-STORE SALES - 9% increase in same-store sales drove revenue growth, attributed to resolution of 2024 supply chain disruptions

• EXPENSE MANAGEMENT - SG&A expenses as a percentage of sales decreased due to lower payroll and insurance costs, despite higher advertising and corporate costs

• GROSS MARGIN - Improved gross margin due to lower distribution and buying costs, partially offset by lower merchandise margins

Key Details

Press Release: ID:nPn472l7Ya

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)