Cato Corporation Continues Store Closures Amid Declining Sales
Cato Corporation, a discount women's fashion retailer with an 80-year history, has closed 14 stores in fiscal 2026 and plans to shut down around 50 more by the end of the year. The company operates under brands like Cato, It's Fashion, and Versona and reported a net loss of store count over the past six months despite opening two new locations. As of August 1, 2026, it operated 1,057 stores across 31 states, down from 1,101 at the same time in fiscal 2025. Cato's sales for the first half of fiscal 2026 fell by 2.9% to $333.3 million compared to a year earlier due primarily to flat comparable-store sales and store closures. The company also reported net income of $10.5 million, nearly unchanged from last year but masking an 83% drop in profit during the second quarter alone. The retailer has been reducing its footprint for several years, closing about 60 stores annually since 2022 and exiting one state over this period. The closures reflect broader retail challenges including shifting consumer spending habits and competition from larger retailers like Walmart.
Topics: Cato Corporation discount fashion retail store count decline