Cato(NYSE) CATO

Cato sells affordable clothing and accessories for women, men, and children. Its stores and websites help families find everyday fashion needs. Credit and layaway options make shopping more flexible for budget-conscious customers.

Wardrobe Wonders: What Cato Sells

• Women's Apparel: Dresses, sportswear, coats, and lingerie for women; core focus, majority of sales.
• Accessories & Shoes: Handbags, costume jewelry, and shoes; included in main store offerings.
• Men's, Kids', and Infants' Wear: Smaller share, targeting families shopping together.
• Credit Card Services: In-house credit card; 0.4% of total revenue in 2025.
• Layaway Plans: Payment plans for customers; approximately 2.6% of retail sales in 2025.
• E-commerce: Online sales for all brands; less than 5% of total sales in 2025.

Growth Spurts and Store Shuffles

• Closed 48 stores in 2025; no new store openings that year.
• Invested in direct overseas sourcing since 2014 for better cost control.
• Launched loyalty program for credit card users in 2021.
• Continued IT and cybersecurity upgrades through 2025.
• Reduced store count from 1,311 in 2022 to 1,069 in 2026.

What Makes Cato Stand Out

Cato focuses on private label clothing, controlling design and costs. Most stores are in strip shopping centers, making them accessible to local shoppers. Direct sourcing and in-house credit options help manage pricing and customer loyalty.

Five Things You Need to Know

• Retail sales were $646.8 million in 2025, up 0.7% from 2024.
• Net loss was $5.9 million in 2025, improved from $18.1 million in 2024.
• Gross margin rose to 33.3% in 2025, up from 32.0% in 2024.
• Store count dropped to 1,069 in 2026, down from 1,311 in 2022.

Bottom Line

Cato has adapted by closing underperforming stores and focusing on cost control. Its private label strategy and flexible payment options support its position in value-focused retail.