Cato Fashion reports sharp decline in Q1 net income

US fashion retailer Cato Corporation has reported a net income of 3.33 million dollars for the first quarter ended May 3, 2025. This figure marks a significant decrease compared to the net income of 11 million dollars recorded for the first quarter ended May 4, 2024.

Diluted earnings per share for the period fell to 0.17 dollars, down from 0.54 dollars in the prior year period. Total sales for the quarter reached 168.43 million dollars, representing a 4 percent decline against the same period of the previous year. Same-store sales for the quarter remained flat.

Economic uncertainty impacts consumer spending

“Our results reflect our customers' cautious approach to discretionary spending,” said John Cato, chairman, president and chief executive officer of the Charlotte-based company.

“While our sales trend improved later in the quarter, the general uncertainty regarding the economy and the potential impact of the proposed tariffs has us cautious about the remainder of the year.”

During the first quarter ended May 3, 2025, Cato Corp repurchased 294,036 shares. The retailer did not open any new locations during the period and permanently closed eight brick and mortar stores.