The Cato Corporation Q1 Earnings Release and Annual Meeting Results

The Cato Corporation reported its first quarter financial results for the period ending May 2, 2026. Net income was $9.3 million, or $0.47 per diluted share, a significant increase from $3.3 million, or $0.17 per diluted share, in the same quarter last year. Total sales for the quarter were $169.5 million, a 0.7% increase from the previous year, with same-store sales rising by 3%. The company's results were positively impacted by a $5.7 million refund claim for IEEPA tariffs. However, sales trends softened later in the quarter due to rising fuel prices affecting customer discretionary income. Gross margin improved to 37.2% from 35.1%, attributed to the tariff refund and a lower merchandise margin due to increased sales of marked-down items. Selling, General, and Administrative expenses decreased to $53.9 million from $55.3 million. The company also held its Annual Meeting, where directors were elected, executive compensation was approved, and PricewaterhouseCoopers LLP was ratified as the independent auditor. The company opened two stores and closed six during the quarter, ending with 1,065 stores.