EXHIBIT 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE
For Further Information Contact:
InvestorRelations@catocorp.com
CATO ANNOUNCES ADDITIONAL THIRD AND FOURTH QUARTER STORE CLOSINGS
CHARLOTTE, N.C. (September 18, 2026) – The Cato Corporation (NYSE:
CATO)
today announced that they plan to
close approximately 70 additional underperforming stores in the third and
fourth quarters bringing total planned stores
closures to approximately 120 stores in fiscal 2026.
“Annually we review approximately one-third of our stores to exercise available
lease options or negotiate an extension
based on each store’s performance including store sales trend and current and projected store profitability.
In years past,
marginal stores were renewed for an additional year to give the store more time
to improve its sales trend and
profitability,” stated John Cato, Chairman, President, and Chief Executive Officer.
“In light of the current economic
environment, especially with the negative pressure on our customers’ discretionary
income, we do not expect these
marginal stores to improve appreciably.
As a result, we are closing more stores than expected this year.
We believe that
closing these additional stores will have a positive impact on our operating
results in fiscal 2027 and beyond.”
The Company expects to incur between $1.0 million and $1.3 million
in costs to exit these additional stores through the
end of 2026.
These costs relate primarily to expenses for the disposal of external
signage and fixtures and returning store
systems back to corporate.
As these stores are all at the end of their lease term, the Company
will not be paying rent for
these locations beyond 2026.
Statements in this press release that express a belief, expectation or intention, as well as those that are not a historical
fact,
including, without limitation, statements regarding additional planned store closures and the expected costs and
potential impact on future operating results associated with these planned closures are considered “forward-looking”
within the meaning of The Private Securities Litigation Reform Act
of 1995.
Such forward-looking statements are based
on current expectations that are subject to known and unknown risks, uncertainties and other factors that could cause
actual results to differ materially from those contemplated by the forward-looking statements.
Such factors include, but
are not limited to, any actual or perceived deterioration in the conditions that drive consumer confidence and spending,
including, but not limited to, prevailing social, economic, political and public health conditions
and uncertainties, war or
similar hostilities and their collateral effects, levels of unemployment, fuel,
energy and food costs, inflation, wage rates,
tax rates, tariff rates, interest rates, home values, consumer net worth and the availability of credit; changes in laws,
regulations or government policies affecting our business, including but not limited to tariffs, taxes and
customs
enforcement; uncertainties regarding the impact of any governmental action regarding, or responses to, the foregoing
conditions; competitive factors and pricing pressures; our ability to predict and respond to rapidly changing fashion
trends and consumer demands; our ability to successfully open new stores in attractive locations and the ability of any
such new stores to grow and perform as expected; underperformance or other factors that may lead to a continuation or
acceleration of store closures and negatively affect
the Company’s
profitability, financial condition or prospects; adverse
weather,
public health threats, acts of war or aggression or similar conditions and related consequences that may affect
our sales or operations; inventory risks due to shifts in market demand,
including the ability to liquidate excess inventory