center,
while continuing to provide excellent customer service,” stated
Mr.
Cato. “Our 2026 outlook is
tempered by the current economic uncertainties and continued pressure on our customers’ disposable
income.”
During 2025, the Company closed 48 stores. As of January 31, 2026, the Company operated 1,069 stores
in 31 states, compared to 1,117 stores in 31 states as of February 1, 2025. During 2026, the Company
plans to open up to 10 new stores and close up to 40 underperforming stores as leases expire. These
store closings are anticipated to have minimal financial impact.
The Cato Corporation is a leading specialty retailer of value-priced fashion apparel and accessories
operating three concepts, “Cato,”
“Versona” and “It’s Fashion.”
The Company’s Cato stores offer
exclusive merchandise with fashion and quality comparable to mall specialty stores at low prices every
day. The Company also offers
exclusive merchandise found in its Cato stores at www.catofashions.com.
Versona is a unique fashion destination offering apparel and accessories including jewelry, handbags,
and shoes at exceptional prices every day. Select Versona
merchandise can also be found at
www.shopversona.com. It’s Fashion
offers fashion with a focus on the latest trendy styles for the entire
family at low prices every day.
Statements in this press release that express a belief, expectation or intention, as well as those that are
not a historical fact, including, without limitation, statements regarding the Company’s expected or
estimated operational financial results, activities or opportunities, and potential
impacts and effects of
events, risks or contingencies are considered “forward-looking” within the meaning of The Private
Securities Litigation Reform Act of 1995.
Such forward-looking statements are based on current
expectations that are subject to known and unknown risks, uncertainties and other factors that could
cause actual results to differ materially from those contemplated by the forward-looking statements.
Such factors include, but are not limited to, any actual or perceived deterioration in the conditions that
drive consumer confidence and spending, including, but not limited to, prevailing social, economic,
political and public health conditions and uncertainties, levels of unemployment, fuel, energy and food
costs, inflation, wage rates, tax rates, interest rates, home values, consumer net worth and the
availability of credit; changes in laws or regulations affecting
our business, including but not limited to
tariffs and taxes; uncertainties regarding the impact of any governmental action regarding, or responses
to, the foregoing conditions; competitive factors and pricing pressures; our ability to predict and respond
to rapidly changing fashion trends and consumer demands; our ability to open new
stores in attractive
locations and the ability of any such new stores to grow and perform as expected; underperformance or
other factors that may lead to a continuation or acceleration of store closures and negative affect on the
Company’s profitability; adverse weather, public health threats,
acts of war or aggression or similar
conditions that may affect our sales or operations; inventory risks due to shifts in market demand,
including the ability to liquidate excess inventory at anticipated margins; and other factors discussed
under “Risk Factors” in Part I, Item 1A
of the Company’s most recently filed annual report on Form 10-K
and in other reports the Company files with or furnishes to the SEC from time to time.
The Company
does not undertake to publicly update or revise the forward-looking statements even if experience or
future changes make it clear that the projected results expressed or implied therein will not be realized.
The Company is not responsible for any changes made to this press release by wire or Internet services.
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