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The Cato's gross profit for the
three
months ended in Jul. 2026 was $55.3 Mil. The Cato's gross profit for the trailing twelve months (TTM) ended in Jul. 2026 was $216.4 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. The Cato's gross profit for the
three
months ended in Jul. 2026 was $55.3 Mil. The Cato's Revenue for the
three
months ended in Jul. 2026 was $165.5 Mil. Therefore, The Cato's Gross Margin % for the quarter that ended in Jul. 2026 was 33.43%.
The Cato had a gross margin of 33.43% for the quarter that ended in Jul. 2026 => Competition eroding margins
During the past 13 years, the highestGross Margin % of The Cato was 41.10%. The lowest was 24.68%. And the median was 34.68%.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
The Cato had a gross margin of 33.43% for the quarter that ended in Jul. 2026 => Competition eroding margins
The Cato Gross Profit Related Terms
The Cato Gross Profit Historical Data
* Premium members only.
The historical data trend for The Cato's Gross Profit can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Apparel Retail subindustry, The Cato's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Cato Gross Profit vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Cato's Gross Profit distribution charts can be found below:
* The bar in red indicates where The Cato's Gross Profit falls into.
Gross Profit for the trailing twelve months (TTM) ended in Jul. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $216.4 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
The Cato (CATO) has a Gross Profit of $216.4 Mil as of Jul. 2026. Gross Profit equals net sales less total cost of goods sold. View historical data on The Cato and its competitors.
Is The Cato's Gross Profit too high?
The Cato's current Gross Profit is $216.4 Mil. Overall, The Cato has a GF Score™ of 59/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Cato's Gross Profit compare to LVLU and BRIA?
The Cato's Gross Profit of $216.4 Mil can be compared against companies in the Retail - Cyclical industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Profit for a Retail - Cyclical company?
A good Gross Profit depends on the Retail - Cyclical industry context. However, Gross Profit should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Profit mean?
A high Gross Profit can signal that a stock is expensive relative to its fundamentals. Gross Profit equals net sales less total cost of goods sold. View historical data on The Cato and its competitors. The Cato's current Gross Profit is $216.4 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Cato stock overvalued right now?
Based on GuruFocus' analysis, The Cato (CATO) is currently considered Modestly Undervalued. The stock's GF Value™ is $3.61, compared to a current price of $2.62 — trading 27.4% below its estimated fair value. The current Gross Profit is $216.4 Mil. The Cato's overall GF Score™ is 59/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Profit calculated?
Gross Profit is calculated from a company's financial statements. For The Cato (CATO), the current Gross Profit is $216.4 Mil as of Jul. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Cato (CATO) Overvalued in 2026?
Based on GuruFocus' analysis, The Cato stock appears to be undervalued.
The current stock price of $2.62 is trading 27.4% below its estimated GF Value™ of $3.61.
GuruFocus considers The Cato to be Modestly Undervalued.
Key valuation signals for CATO:
Gross Profit: $216.4 Mil
GF Value™: $3.61 vs. price of $2.62 (27.4% below fair value)
No single metric tells the full story. See the CATO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Cato Corp seeks to offer quality fashion apparel and accessories at low prices every day, in junior/missy and plus sizes. The Cato concept's stores and e-commerce website feature a broad assortment of apparel and accessories, including dressy, career, and casual sportswear, dresses, coats, shoes, lingerie, costume jewelry, and handbags. Management believes the Company's success is dependent upon its ability to differentiate its stores from department stores, mass merchandise discount stores, and competing specialty stores. The key elements of the Company's business are: Merchandise Assortment, Value Pricing, Strip Shopping Center Location, Customer Service, Credit and Layaway Programs.
59GF Score
Get the complete analysis for CATO
Gross Profit is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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