--- title: "Cato | 10-Q: FY2027 Q1 Revenue: USD 171.1 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/287940991.md" datetime: "2026-05-28T15:02:39.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/287940991.md) - [en](https://longbridge.com/en/news/287940991.md) - [zh-HK](https://longbridge.com/zh-HK/news/287940991.md) generator: "portal-rs" --- # Cato | 10-Q: FY2027 Q1 Revenue: USD 171.1 M Revenue: As of FY2027 Q1, the actual value is USD 171.1 M. EPS: As of FY2027 Q1, the actual value is USD 0.47. EBIT: As of FY2027 Q1, the actual value is USD 8.598 M. ### Retail Segment #### Revenues Revenues for the three months ended May 2, 2026, were $170,439 thousand, compared to $169,577 thousand for the three months ended May 3, 2025. #### Cost of Goods Sold Cost of Goods Sold was $106,340 thousand for the three months ended May 2, 2026, down from $109,318 thousand for the three months ended May 3, 2025. The decrease in cost of goods sold as a percentage of sales was partly due to a pre-tax tariff refund claim of $5.7 million and lower freight costs, partially offset by increased sales of marked-down goods. #### Selling, General, and Administrative Expenses (SG&A) SG&A expenses were $38,717 thousand for the three months ended May 2, 2026, compared to $39,159 thousand for the three months ended May 3, 2025. These expenses were lower primarily due to reduced corporate payroll, insurance costs, and equipment maintenance, partially offset by increased incentive compensation expense. #### Depreciation Depreciation was $2,236 thousand for the three months ended May 2, 2026, compared to $2,564 thousand for the three months ended May 3, 2025, with the decrease attributed to fully depreciated older stores. #### Interest and Other Income, Net Interest and other income, net, was - $87 thousand for the three months ended May 2, 2026, compared to - $105 thousand for the three months ended May 3, 2025. #### Segment Income Before Income Taxes Segment income before income taxes was $8,417 thousand for the three months ended May 2, 2026, significantly up from $2,862 thousand for the three months ended May 3, 2025. #### Capital Expenditures Capital expenditures were $1,067 thousand for the three months ended May 2, 2026, compared to $1,019 thousand for the three months ended May 3, 2025. ### Credit Segment #### Revenues Revenues for the three months ended May 2, 2026, were $665 thousand, remaining flat compared to $665 thousand for the three months ended May 3, 2025. Credit revenue represented 0.4% of total revenues in the first quarter of fiscal 2026, consistent with 2025. #### Selling, General, and Administrative Expenses (SG&A) SG&A expenses totaled $397 thousand for the three months ended May 2, 2026, compared to $387 thousand for the three months ended May 3, 2025. Related expenses, primarily payroll, postage, and other administrative costs, were $0.4 million in the first quarter of 2026, flat compared to 2025. #### Interest and Other Income, Net Interest and other income, net, was - $270 thousand for the three months ended May 2, 2026, compared to - $303 thousand for the three months ended May 3, 2025. #### Segment Income Before Income Taxes Segment income before income taxes was $538 thousand for the three months ended May 2, 2026, compared to $581 thousand for the three months ended May 3, 2025. ### Consolidated Financial Metrics #### Total Revenues Total revenues were $171,104 thousand for the three months ended May 2, 2026, compared to $170,242 thousand for the three months ended May 3, 2025. #### Corporate Overhead Corporate overhead was $14,816 thousand for the three months ended May 2, 2026, down from $15,779 thousand for the three months ended May 3, 2025. #### Corporate Interest and Other Income Corporate interest and other income was - $876 thousand for the three months ended May 2, 2026, compared to - $794 thousand for the three months ended May 3, 2025. #### Income Before Income Taxes Income before income taxes was $9,831 thousand for the three months ended May 2, 2026, a significant increase from $4,237 thousand for the three months ended May 3, 2025. #### Income Tax Expense Income tax expense was $522 thousand for the three months ended May 2, 2026, compared to $928 thousand for the three months ended May 3, 2025. The effective tax rate for the first quarter of fiscal 2026 was 5.3%, down from 21.9% in the prior year, primarily due to lower foreign income taxes. #### Net Income Net income was $9,309 thousand for the three months ended May 2, 2026, compared to $3,309 thousand for the three months ended May 3, 2025. #### Net Cash Provided by Operating Activities Net cash provided by operating activities was $8,049 thousand for the first three months of fiscal 2026, an increase of $4.2 million compared to $3,868 thousand for the first three months of fiscal 2025. This increase was mainly due to higher net income and changes in accounts payable, partially offset by increases in accounts receivable and inventory. #### Net Cash Provided by Investing Activities Net cash provided by investing activities was $809 thousand for the first three months of fiscal 2026, down from $7,948 thousand in the comparable period of fiscal 2025, primarily due to increased purchases of short-term investments. #### Net Cash Used in Financing Activities Net cash used in financing activities was - $234 thousand for the first three months of fiscal 2026, compared to - $873 thousand in the comparable period of fiscal 2025. This was mainly due to lower stock repurchases, with The Cato Corporation repurchasing 107,823 shares in the first quarter of 2026 and 572,917 shares remaining in open authorizations as of May 2, 2026. #### Working Capital Working capital was $49.0 million at May 2, 2026, up from $37.4 million at January 31, 2026, due to increases in cash, inventory, and accounts receivable, partially offset by higher accounts payable. #### ABL Credit Facility As of May 2, 2026, The Cato Corporation had no borrowings outstanding and $27.0 million in available borrowing capacity under its $35.0 million asset-backed revolving credit facility. ### Future Outlook and Strategy The Cato Corporation expects to invest approximately $7.4 million in capital expenditures for the full fiscal year 2026. The company plans to open up to 15 new stores and close approximately 35 stores in fiscal 2026. The Cato Corporation anticipates that its current cash, cash equivalents, short-term investments, cash flows from operations, and asset-backed revolving line of credit will be sufficient to fund operating requirements and expected capital expenditures for the next 12 months. ### Related Stocks - [CATO.US](https://longbridge.com/en/quote/CATO.US.md) ## Related News & Research - [Flexsteel Q4 2026 Earnings Preview](https://longbridge.com/en/news/296031749.md) - [REG - UIL Limited UIL Finance Ltd - Purchase of 2026 ZDP Shares](https://longbridge.com/en/news/296518280.md) - [Algorhythm Holdings Reports Second Quarter 2026 Financial Results](https://longbridge.com/en/news/296124832.md) - [REG - UIL Limited UIL Finance Ltd - Purchase of 2026 ZDP Shares](https://longbridge.com/en/news/296129742.md) - [Baker Hughes declares Q3 2026 dividend of R$ 0.81 per unit](https://longbridge.com/en/news/296392545.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**