EXHIBIT 99.1

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InvestorRelations@catocorp.com

CATO REPORTS1Q EARNINGS

CHARLOTTE, N.C. (May 21, 2026) – The Cato Corporation (NYSE: CATO) today reported net income of $9.3 million

or $0.47 per diluted share for the first quarter ended May 2, 2026, comparedto net income of $3.3 million or $0.17 per

diluted share for the first quarter ended May 3, 2025.

Sales for the first quarter ended May 2, 2026 were $169.5 million, or anincrease of 0.7% from sales of $168.4 million for

the first quarter ended May 3, 2025.The Company’s same-store sales for the quarter increased 3%.

"Our results significantly benefited from the refund claimof IEEPA (International Emergency Economic Powers Act)

tariffs in the quarter.Our sales trend softened as the quarter continued in part dueto higher fuel prices pressuring our

customers’ discretionary income,” said John Cato, Chairman, Presidentand Chief Executive Officer.

”

For the foreseeable

future we expect our sales to be negatively impacted by rising inflation,especially fuel and food prices, which will reduce

our customers’ discretionary income.”

First quarter gross margin as a percentage of sales was 37.2% in 2026 and 35.1%in 2025.

The increase in gross margin as

a percentage of sales is due in part to a pre-tax $5.7 million tariff refund claimpartially offset by lower merchandise

contribution caused in part by higher sales of marked-downgoods.Selling, General and Administrative expense

decreased to $53.9 million in the first quarter of 2026 from$55.3 million in 2025 due to decreases in corporate payroll

expense, insurance costs and equipment maintenance partially offset by incentivecompensation expense.Selling, General

and Administrative expense as a percentage of sales decreased to 31.8%in 2026 compared to 32.8% in 2025.Interest and

other income were $1.2 million in both 2026 and 2025.

Income tax expense for the quarter decreased to $0.5 million in

2026 from

$0.9 million in 2025.The decrease in tax expense is primarily due to a reduction in foreign taxes.

Additionally, the Company bought back 107,823 shares during the quarter.

During the first quarter ended May 2, 2026, the Company opened twostores and closed six stores.As of May 2, 2026, the

Company operated 1,065 stores in 31 states, compared to 1,109 storesin 31 states as of May 2, 2025.

The Cato Corporation is a leading specialty retailer of value-priced fashion appareland accessories operating three

concepts, “Cato,” “Versona” and “It’sFashion.”The Company’s Cato stores offer exclusive merchandise with fashion

and quality comparable to mall specialty stores at low prices everyday.The Company also offers exclusive merchandise

found in its Cato stores at www.catofashions.com.Versonais a unique fashion destination offering apparel and

accessories including jewelry, handbags and shoes at exceptional prices every day.Select Versonamerchandise can also

be found at www.shopversona.com.It’s Fashion offers fashion with a focus on the latest trendy styles for the entire

family at low prices every day.

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 the Company’sexpected or estimated operational financial

results, activities or opportunities, and potential impacts and effects of events, risks or contingencies 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 publichealth conditions

and uncertainties, levels of unemployment, fuel, energy and food costs, inflation, wage rates, taxrates, interest rates,

home values, consumer net worth and the availability of credit; changes in laws or regulations affecting our business,

including but not limited to tariffs and taxes; 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 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 negative affect on the Company’sprofitability; adverse weather,public

health threats,acts of war or aggression or similar conditions that may affect our sales or operations; inventoryrisks due

to shifts in market demand, including the ability to liquidate excess inventoryat anticipated margins; and other factors

discussed under “Risk Factors” in Part I, Item 1Aof the Company’smost recently filed annual report on Form 10-K and

in other reports the Company files with or furnishes to the SEC from time to time.The Company does not undertake to

publicly update or revise the forward-looking statements even if experience or future changes make it clear that the

projected results expressed or implied thereinwill not be realized. The Company is not responsible for any changes made

to this press release by wire or Internet services.

CONDENSED CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)

FOR THE PERIODS ENDED May 2, 2026 AND May 3, 2025

(Dollars in thousands, except per share data)

Quarter Ended

May 2

%

May 3

%

2026

Sales

2025

Sales

Retail sales

$

169,410

100.0%

$

168,419

100.0%

Other revenue (principally finance,

late fees and layaway charges)

1,694

1.0%

1,823

1.1%

Total revenues

171,104

101.0%

170,242

101.1%

GROSS MARGIN (Memo)

63,070

37.2%

59,101

35.1%

Cost of goods sold

106,340

62.8%

109,318

64.9%

Selling, general and administrative

53,930

31.8%

55,325

32.8%

Depreciation

2,236

1.3%

2,564

1.5%

Interest and other income

(1,233)

-0.7%

(1,202)

-0.7%

Costs and expenses, net

161,273

95.2%

166,005

98.6%

Income Before Income Taxes

9,831

5.8%

4,237

2.5%

Income Tax Expense

522

0.3%

928

0.6%

Net Income

$

9,309

5.5%

$

3,309

2.0%

Basic Earnings Per Share

$

0.47

$

0.17

Diluted Earnings Per Share

$

0.47

$

0.17

(Dollars in thousands)

May 2,

January 31,

2026

2026

(Unaudited)

(Unaudited)

Current Assets

Cash and cash equivalents

$

25,412

$

16,788

Short-term investments

55,558

56,859

Restricted cash

2,675

2,675

Accounts receivable - net

33,159

25,462

Merchandise inventories

92,490

83,696

Other current assets

7,928

7,787

Total Current Assets

217,222

193,267

Property and Equipment - net

52,504

53,748

Other Assets

20,720

20,471

Right-of-Use Assets, net

148,734

153,933

TOTAL

$

439,180

$

421,419

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

$

116,130

$

102,385

Current Lease Liability

52,088

53,507

Noncurrent Liabilities

11,318

11,272

Lease Liability

92,939

96,941

Stockholders' Equity

166,705

157,314

TOTAL

$

439,180

$

421,419