Cato Q1 net income more than doubles on tariff refund

Cato Corporation Class A

CATO

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Overview

US apparel retailer's Q1 sales rose 0.7% yr/yr, net income more than doubled
Profitability boosted by $5.7 mln tariff refund and lower SG&A expenses
Company repurchased 107,823 shares and closed four more stores than it opened in Q1

Outlook

Company expects sales to be negatively impacted by rising inflation, especially fuel and food prices

Result Drivers

TARIFF REFUND - Q1 results benefited from a $5.7 mln pre-tax refund claim related to IEEPA tariffs
SOFTENING SALES TREND - Sales trend weakened as the quarter progressed, with higher fuel prices pressuring customers' discretionary income, per CEO John Cato
LOWER SG&A EXPENSES - SG&A expenses fell due to decreases in corporate payroll, insurance costs and equipment maintenance

Company press release: ID:nPnDHjqla

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Retail Sales		$169.41 mln
Q1 EPS		$0.47
Q1 Net Income		$9.31 mln
Q1 Basic EPS		$0.47
Q1 Pretax Profit		$9.83 mln

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