Filing Flows › Cato (CATO) › Q2 FY27
Cato (CATO) Q2 FY27 earnings results (second quarter fiscal 2027)
10-Q filed Aug 27, 2026
Cato (CATO) reported revenue of $166M for the second quarter fiscal 2027 (Q2 FY27), -6% from a year earlier and -3% from the quarter before. Operating margin was -0.4%, net earnings $1.1M (0.7% of revenue).
Cato, Q2 FY27: revenue $166M (-6% year over year), operating margin -0.4%, net earnings $1.1M, operating cash flow $14.5M. The chart follows the revenue to costs, profit and cash.
| Q2 FY27 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $166M | -3% | -6% |
| Operating profit | −$618K | -107% | -111% |
| Net earnings | $1.1M | -88% | -83% |
| Operating cash flow | $14.5M | +80% | +23% |
| Free cash flow | $13.1M | +88% | +26% |
What changed
Revenue was $165.5M in Q2 FY27, down 6% year over year and down 3% from the previous quarter. Retail Segment was the largest line at 100% of revenue. Retail Segment lost $11.0M year over year (down 6%), 100% of the total change.
Operating costs exceeded revenue by $618K, an operating margin of -0.4%. Total costs fell 3% while revenue fell 6%. Net earnings were $1.1M, down 83% year over year. The effective tax rate was 11.3%. Non-operating items added $1.9M, 148% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $14.5M (up 23% year over year), 1261% of net earnings. Non-cash charges added back $2.2M of depreciation and $394K of share-based compensation. Working capital and other items added $10.7M. Capital expenditures of $1.3M left free cash flow of $13.1M.
Questions
What was Cato's revenue in the second quarter fiscal 2027?
Cato (CATO) reported revenue of $166M for the second quarter fiscal 2027 (Q2 FY27), -6% from a year earlier and -3% from the quarter before.
Was Cato profitable in the second quarter fiscal 2027?
Operating loss was $618K (-0.4% of revenue) and net earnings $1.1M.
Source: Cato 10-Q on SEC EDGAR.