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Cato Corporation (The) Class A (CATO-12.07%) has filed its annual report on Form 10-K for the fiscal year ended February 1, 2025. The document is available for review filing.
The filing reveals that Cato Corporation operated 1,117 fashion specialty stores as of February 1, 2025, primarily in the southeastern United States. The stores operate under various brand names, including Cato, Cato Fashions, Cato Plus, It's Fashion, It's Fashion Metro, and Versona.
The company reported total revenues of $649.8 million for fiscal 2024, a decrease from $708.1 million in fiscal 2023. Retail sales accounted for $642.1 million of the total revenue, reflecting an 8.3% decrease compared to the previous fiscal year.
Cost of goods sold for fiscal 2024 was $436.4 million, which was 68.0% of retail sales, up from 66.3% in fiscal 2023. The increase in cost ratio was attributed to higher distribution and freight costs and increased sales of markdown-priced goods.
The company reported a net loss of $18.1 million for fiscal 2024, compared to a net loss of $23.9 million in fiscal 2023.
Cato Corporation's management discussed several factors impacting its financial performance, including inflationary pressures, high interest rates, and supply chain disruptions affecting merchandise costs and availability.
The filing also details the company's financial position, including cash, cash equivalents, and short-term investments totaling $77.7 million as of February 1, 2025.
Cato Corporation's annual report includes a discussion of risk factors, highlighting potential challenges such as changes in consumer spending habits, competition in the retail apparel industry, and geopolitical risks affecting its supply chain.
The company has an asset-backed revolving credit facility of $35 million, which was established on March 13, 2025, to provide funding for ongoing working capital and general corporate purposes.
Management's discussion and analysis in the filing emphasize the company's strategies for managing inventory, controlling costs, and navigating economic uncertainties to improve financial performance in the coming fiscal year.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Cato Corporation (The) Class A annual 10-K report dated March 31, 2025. To report an error, please email earnings@qz.com.