The Cato Corporation (NYSE:CATO) announced its financial results for the fourth quarter and full fiscal year ended January 31, 2026, showcasing a year of operational refinement and narrowed losses.
The specialty retailer of women’s fashions and accessories reported a full-year net loss of $5.9 million, a substantial improvement from the $18.1 million net loss recorded in fiscal 2024.
For the fourth quarter, net loss was $10.7 million, or $0.55 per diluted share, compared to a loss of $14.1 million in the same period last year.
While fourth-quarter sales declined 3.4% to $150 million, the company’s full-year revenue saw a modest increase of 0.7% to $646.8 million.
A primary highlight of the year was the 4% increase in year-to-date same-store sales, suggesting that the company's core product assortments and value proposition continue to resonate with its customer base despite a challenging discretionary spending environment.
Profitability metrics also trended positively throughout the year due to better inventory management and expense discipline.
Elsewhere, gross margin expanded to 29.2% in the fourth quarter and reached 33.3% for the full year.
This expansion was complemented by a concerted effort to streamline operations, resulting in a $5 million reduction in selling, general, and administrative (SG&A) expenses for the full fiscal year.