24/7 Market News Snapshot 21 August, 2025 – CATO CORP (NYSE:CATO)
DENVER, Colo., 21 August, 2025 (www.247marketnews.com) – (NYSE:CATO) are discussed in this article.
Cato Corp (CATO) has experienced an impressive surge in its stock price, opening at $3.21 and currently trading at $3.605, marking a remarkable increase of approximately 26.94% from the previous day’s closing price of $2.84. This notable rally is accompanied by a current trading volume of 557.08K, reflecting heightened investor interest and optimism surrounding the company’s performance.
The Cato Corporation recently released its financial results for the second quarter of 2025, indicating a robust recovery in both net income and sales growth. The company reported a net income of $6.8 million, equivalent to $0.35 per diluted share, up significantly from last year’s income of $0.1 million, or $0.01 per diluted share. Sales for the quarter reached $174.7 million, showcasing a 5% increase compared to $166.9 million in the same quarter of the previous year, largely driven by a 9% rise in same-store sales.
For the first half of the fiscal year, Cato’s net income was $10.1 million, or $0.51 per diluted share—slightly lower than the $11.1 million, or $0.54 per diluted share, recorded in the same period last year. Overall sales edged up to $343.1 million, reflecting a modest 0.3% increase year-over-year.
John Cato, the Chairman and CEO, expressed optimism regarding the company’s trajectory, attributing the positive sales trends to effective management of prior supply chain challenges. The firm’s commitment to stringent expense management is crucial as it anticipates overcoming potential obstacles in the latter half of 2025, particularly amidst ongoing tariff uncertainties.
Gross margin improved from 34.6% to 36.2% of sales, driven by reduced distribution and buying costs, despite facing lower merchandise margins. Additionally, selling, general, and administrative expenses decreased as a percentage of sales, from 34.9% to 32.8%, reflecting successful cost management efforts.
As of August 2, 2025, Cato operated 1,101 stores across 31 states, having closed eight locations during the quarter. The corporation remains focused on delivering value-priced fashion apparel and accessories through its three key brands: Cato, Versona, and It’s Fashion.