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The Cato Corporation(CATO)Earnings, Financials & Key Ratios
CATO•NYSE
$3.31
Price updated Jul 7, 2026
AboutThe Cato Corporation, together with its subsidiaries, operates as a specialty retailer of fashion apparel and accessories primarily in the southeastern United States. It operates through two segments, Retail and Credit. The company's stores and e-commerce websites offer a range of apparel and accessories, including dressy, career, and casual sportswear; and dresses, coats, shoes, lingerie, costume jewelry, and handbags, as well as men's wear, and lines for kids and infants. It operates its stores and e-commerce websites under the Cato, Cato Fashions, Cato Plus, It's Fashion, It's Fashion Metro, and Versona names. As of January 29, 2022, the company operated 1,311 stores in 32 states. It also provides credit card services to its customers, as well as layaway plans for customers who agree to make periodic payments. The company was incorporated in 1946 and is headquartered in Charlotte, North Carolina.Show more
- Revenue$654M+0.6%
- EBITDA-$4M+75.7%
- Net Income-$6M+68.2%
- EPS (Diluted)-0.31+68.0%
- Gross Margin32.47%+3.6%
- EBITDA Margin-0.64%+75.8%
- Operating Margin-2.17%+48.0%
- Net Margin-0.9%+68.4%
- ROE-3.7%+64.8%
CATO Price & Volume
The Cato Corporation (CATO) stock price & volume — 10-year historical chart
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Persistent Operational Stagnation Challenges Retail Value Thesis
Investment Thesis • Updated 2026Q1
VerdictNegative
Growth:Mixed
Profitability:Negative
Financial:Strained
Cash Flow:Deteriorating
Primary Risk:Persistent negative operating margins
Key Thesis Takeaways
- The Cato Corporation faces a challenging outlook characterized by stagnant revenue growth of only 0.62% year-over-year and significant volatility in operating margins, which reached a low of -11.9% in 2024Q3.
- While the company maintains a substantial rural real estate footprint, its reliance on a high-fixed-cost brick-and-mortar model continues to pressure profitability and erode equity, which has declined from $196.9 million in 2024Q1 to $166.7 million in 2026Q1.
- Investors should monitor whether management can stabilize cash flows and improve inventory turnover, currently at 72 days, before considering the stock as a viable turnaround candidate.
Verdict Logic
the company's inability to maintain consistent profitability is underscored by a TTM P/E of -10.77 and persistent negative operating margins in several recent quarters.
CATO Growth Metrics
The Cato Corporation (CATO) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years-4.27%
5 Years2.6%
3 Years-4.86%
TTM-0.24%
Profit CAGR
10 Years-
5 Years-
3 Years-
TTM113.04%
EPS CAGR
10 Years-
5 Years-
3 Years-
TTM111.22%
Return on Capital
10 Years0.79%
5 Years-2.33%
3 Years-6.75%
Last Year-5.36%
Peers Comparison
Key metrics vs top competitors for The Cato Corporation (CATO)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $3.31 | $59.28M | -10.68 | 0.62% | -0.9% | -3.7% | — | |
| $3.26 | $72.49M | -0.81 | -12.8% | -9.09% | — | — | |
| $0.62 | $34.44M | -0.94 | -6.85% | -9.22% | -32.66% | — | |
| $1.86 | $185.07M | -26.84 | -9.39% | -1.28% | — | — | |
| $57.03 | $475.05M | 90.52 | 8.88% | 1.42% | 10.45% | — | |
| $30.25 | $3.05B | -9.19 | -4.26% | -156.36% | -68.97% | — |
Compare CATO vs Peers
The Cato Corporation (CATO) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
CATO SEC Filings & Documents
The Cato Corporation (CATO) SEC filings — annual & quarterly reports (10-K, 10-Q)
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CATO Frequently Asked Questions
The Cato Corporation (CATO) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is The Cato Corporation's revenue?
The Cato Corporation (CATO) reported $649.3M in revenue for fiscal year 2025. This represents a 36% increase from $477.0M in 1996.
How fast is The Cato Corporation growing?
The Cato Corporation (CATO) grew revenue by 0.6% over the past year. Growth has been modest.
Is CATO profitable?
Yes, The Cato Corporation (CATO) is profitable, generating $2.6M in net income for fiscal year 2025 (-0.9% net margin).
Dividend & Returns
What is CATO's return on equity?
The Cato Corporation (CATO) has a return on equity (ROE) of -3.7%. Negative ROE indicates the company is unprofitable.
What is The Cato Corporation's free cash flow?
The Cato Corporation (CATO) had negative free cash flow of $4.5M in fiscal year 2025, likely due to heavy capital investments.