Cato Corporation Increases 2026 Store Closures to 120

The Cato Corporation announced it will close approximately 70 additional underperforming stores during the third and fourth quarters of 2026. This decision increases the company's total planned closures for fiscal 2026 to roughly 120 locations.

John Cato, the company's Chairman, President, and CEO, attributed the expansion of the closure plan to a challenging economic environment. He noted that negative pressure on the discretionary income of customers makes it unlikely that marginal stores will improve appreciably.

The company expects to incur between $1.0 million and $1.3 million in exit costs by the end of 2026, primarily for the disposal of fixtures and signage. Because the affected stores are at the end of their lease terms, the company will not be responsible for rent beyond 2026. Management expects these closures to positively impact operating results starting in fiscal 2027.