Cato (CATO) to Close 120 Stores Amid 6% Revenue Decrease

Cato Corporation (CATO) plans to close 120 stores, approximately 15% of its total locations, due to ongoing sales struggles. The company reported a net income of $1.1 million in Q2 2026, down from $6.8 million in Q2 2025, and a 6% decrease in sales from $174.7 million to $163.9 million. This decline was attributed to a 3.7% drop in same-store sales and pressures on consumer discretionary income. The strategy to close underperforming locations comes as Cato anticipates further challenges in the second half of 2026, which may lead to continued revenue declines for ordinary investors.

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