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Cato Fashions to Close 120 Stores Amid Pressure on Shoppers’ Spending
The Charlotte-based retailer said the cuts will top 10% of its store base after second-quarter net income fell to $1.1 million.
- The Cato Corporation announced it will close 120 retail stores by the end of its fiscal year, more than double the 50 closures initially planned. The Charlotte, North Carolina-based company operates more than 1,000 apparel and accessories locations across 31 states.
- John Cato, company chairman, president, and CEO, cited "negative pressure on our customers' discretionary income" as the primary driver for expanded closures. The company reviews store performance annually to determine lease extensions or closures based on profitability.
- Beyond its namesake brand, the corporation operates 90 Versona locations and 119 stores under Fashion and Fashion Metro banners. Founded in 1946, Cato focuses on budget-conscious shoppers, competing with retailers like Maxx and Ross Dress.
- In August, the company reported second-quarter net income of just $1.1 million, down from $6.8 million a year earlier. The closures affect more than 10% of its total retail footprint.
- Cato expects the store closures to improve operating results in fiscal 2027 and beyond by eliminating marginal locations. The company aims to stabilize financial performance amid challenging economic conditions affecting its price-sensitive customer base.
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26 Articles
26 Articles
Affordable fashion chain closing 120 stores after CEO says he doesn’t expect them to improve
Cato’s decision to close additional stores this year comes after an evaluation showed the underperforming locations weren’t likely to improve, company officials said.
·Cleveland, United States
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The IndependentReposted by 
The Independent (US)
The Independent (US)Cato Corporation to close 120 US stores due to inflation and soaring costs
·London, United Kingdom
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Women's apparel chain Cato shrinks its footprint after profit decline
Cato is turning its annual lease review into a broader reset of its store base, with plans to close 120 Cato Fashions locations by the end of its fiscal year. The move affects more than 10% of a chain that operates over 1,000 stores in 31 states and sharply exceeds an earlier expectation of roughly 50 closures. Lease decisions expose the weakest stores The women's apparel retailer reviews about one-third of its locations each year when lease opt…
Coverage Details
Total News Sources26
Leaning Left4Leaning Right2Center18Last UpdatedBias Distribution75% Center
Bias Distribution
- 75% of the sources are Center
75% Center
L 17%
C 75%
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