Cato's stock surged 16% as Q4 loss narrowed due to expense reduction and operational updates.

From Zacks Investment Research: 2025-03-25 15:00:00

Shares of The Cato Corporation (CATO) have surged 15.8% since reporting earnings for the quarter ended Feb. 1, 2025, outperforming the S&P 500. Despite a 10% decline in quarterly sales to $155.3 million, the company narrowed its net loss to $14.1 million. Operational updates and expense reductions drove positive investor sentiment. Gross margin contracted to 28%, but SG&A expenses fell, improving to 37.8% of sales. CEO John Cato highlighted challenges faced due to economic headwinds and operational disruptions, but noted improvements in the fourth quarter. The company eliminated 40 corporate positions and plans to open new stores while closing underperforming locations in fiscal 2025.



Read more at Zacks Investment Research: Cato Stock Improves 16% as Q4 Loss Narrows Year Over Year – March 25, 2025