- The Cato Corporation reported **net income of $6.8 million** or **$0.35 per diluted share** on **sales of $174.7 million** for the second quarter ended August 2, 2025.  **[18255_0001562762-25-000220_exhibit991.htm:0]**  This represents a **5% increase in sales** and a **9% same-store sales increase** compared to the second quarter ended August 3, 2024.  **[18255_0001562762-25-000220_exhibit991.htm:0]** 
- For the second quarter ended August 2, 2025, gross margin increased to **36.2% of sales** from 34.6%, and selling, general, and administrative (SG&A) expenses decreased to **32.8% of sales** from 34.9% in the prior year quarter.  **[18255_0001562762-25-000220_exhibit991.htm:0]** 
- As of August 2, 2025, the company operated **1,101 stores** in 31 states, having closed **eight stores** during the second quarter.  **[18255_0001562762-25-000220_exhibit991.htm:0]** 
- John Cato, Chairman, President, and CEO, stated that the sales trend continued to improve, partly due to 2024 sales being impacted by supply chain disruptions, and anticipates the second half of 2025 to be challenging due to continued uncertainty regarding tariffs.  **[18255_0001562762-25-000220_exhibit991.htm:0]**

CATO (CATO)