10-Q

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[X]	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended November 3, 2018
OR
[  ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________________to__________________
Commission file number                1-31340

THE CATO CORPORATION
(Exact name of registrant as specified in its charter)
Delaware	56-0484485
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
8100 Denmark Road, Charlotte, North Carolina 28273-5975
(Address of principal executive offices) (Zip Code)
(704) 554-8510
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes X No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes X No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.  (Check one):

Large accelerated filer  ¨  Accelerated filer  þ  Non-accelerated filer  ¨  Smaller reporting company  ¨  Emerging growth company  ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes No X

As of November 3, 2018, there were 22,844,871 shares of Class A common stock and 1,763,652 shares of Class B common stock outstanding.

THE CATO CORPORATION

FORM 10-Q

Quarter Ended November 3, 2018

Table of Contents

				Page No.
PART I – FINANCIAL INFORMATION (UNAUDITED)
	Item 1.		Financial Statements (Unaudited):
	Condensed Consolidated Statements of Income and Comprehensive Income			3
		For the Three Months and Nine Months Ended November 3, 2018 and October 28, 2017
	Condensed Consolidated Balance Sheets			4
		At November 3, 2018 and February 3, 2018
	Condensed Consolidated Statements of Cash Flows			5
		For the Nine Months Ended November 3, 2018 and October 28, 2017
	Notes to Condensed Consolidated Financial Statements			6 – 18
		For the Three Months and Nine Months Ended November 3, 2018 and October 28, 2017
	Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations	19 –25
	Item 3.		Quantitative and Qualitative Disclosures About Market Risk	26
	Item 4.		Controls and Procedures	26
PART II – OTHER INFORMATION
	Item 1.		Legal Proceedings	27
	Item 1A.		Risk Factors	27
	Item 2.		Unregistered Sales of Equity Securities and Use of Proceeds	27
	Item 3.		Defaults Upon Senior Securities	27
	Item 4.		Mine Safety Disclosures	28
	Item 5.		Other Information	28
	Item 6.		Exhibits	28
	Signatures			29

3

Table of Contents

PART I FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

THE CATO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND

COMPREHENSIVE INCOME

(UNAUDITED)

		Three Months Ended			Nine Months Ended
	November 3, 2018		October 28, 2017		November 3, 2018		October 28, 2017
		(Dollars in thousands, except per share data)
REVENUES
Retail sales	$	187,892	$	188,368	$	630,765	$	631,049
Other revenue (principally finance charges, late fees and
layaway charges)		2,120		1,905		6,464		5,926
Total revenues		190,012		190,273		637,229		636,975
COSTS AND EXPENSES, NET
Cost of goods sold (exclusive of depreciation shown below)		123,014		124,462		395,102		411,503
Selling, general and administrative (exclusive of depreciation
shown below)		61,765		62,100		196,616		190,162
Depreciation		4,094		5,047		12,470		14,989
Interest and other income		(1,374)		(1,200)		(3,559)		(3,472)
Cost and expenses, net		187,499		190,409		600,629		613,182
Income/(Loss) before income taxes		2,513		(136)		36,600		23,793
Income tax (benefit)/expense		(1,287)		(2,830)		2,907		(252)
Net income/(loss)	$	3,800	$	2,694	$	33,693	$	24,045
Basic earnings/(loss) per share	$	0.16	$	0.11	$	1.36	$	0.93
Diluted earnings/(loss) per share	$	0.16	$	0.11	$	1.36	$	0.93
Dividends per share	$	0.33	$	0.33	$	0.99	$	0.99
Comprehensive income:
Net income/(loss)	$	3,800	$	2,694	$	33,693	$	24,045
Unrealized gain (loss) on available-for-sale securities, net of
deferred income taxes of ($117) and ($141) for the three and
nine months ended November 3, 2018 and ($101) and $272 for
the three and nine months ended October 28, 2017, respectively		(373)		(170)		(451)		455
Comprehensive income/(loss)	$	3,427	$	2,524	$	33,242	$	24,500

See notes to condensed consolidated financial statements (unaudited).

4

Table of Contents

THE CATO CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	November 3, 2018		February 3, 2018
ASSETS	(Dollars in thousands)
Current Assets:
Cash and cash equivalents	$	26,668	$	78,047
Short-term investments		183,241		118,836
Restricted cash		3,662		3,217
Restricted short-term investments		106		505
Accounts receivable, net of allowance for doubtful accounts of
$849 and $1,148 at November 3, 2018 and February 3, 2018, respectively		37,016		28,018
Merchandise inventories		113,046		121,535
Prepaid expenses and other current assets		11,195		22,322
Total Current Assets		374,934		372,480
Property and equipment – net		99,308		109,368
Noncurrent deferred income taxes		11,155		12,570
Other assets		21,496		21,658
Total Assets	$	506,893	$	516,076
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	72,606	$	82,605
Accrued expenses		54,395		52,825
Accrued bonus and benefits		10,333		2,971
Accrued income taxes		779		680
Total Current Liabilities		138,113		139,081
Other noncurrent liabilities		42,580		50,642
Stockholders' Equity:
Preferred stock, $100 par value per share, 100,000 shares
authorized, none issued		-		-
Class A common stock, $.033 par value per share, 50,000,000
shares authorized; issued 22,844,871 shares and 23,045,039 shares
at November 3, 2018 and February 3, 2018, respectively		767		774
Convertible Class B common stock, $.033 par value per share,
15,000,000 shares authorized; issued 1,763,652 shares and 1,755,601 shares
at November 3, 2018 and February 3, 2018, respectively		59		58
Additional paid-in capital		104,300		99,948
Retained earnings		221,846		225,894
Accumulated other comprehensive income/(loss)		(772)		(321)
Total Stockholders' Equity		326,200		326,353
Total Liabilities and Stockholders' Equity	$	506,893	$	516,076

See notes to condensed consolidated financial statements (unaudited).

5

Table of Contents

THE CATO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

		Nine Months Ended
	November 3, 2018		October 28, 2017
		(Dollars in thousands)
Operating Activities:
Net income	$	33,693	$	24,045
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation		12,470		14,989
Provision for doubtful accounts		301		466
Purchase premium and premium amortization of investments		420		2,747
Share-based compensation		3,697		3,002
Deferred income taxes		1,556		1,015
Loss on disposal of property and equipment		530		611
Changes in operating assets and liabilities which provided
(used) cash:
Accounts receivable		(9,288)		(497)
Merchandise inventories		8,489		17,919
Prepaid and other assets		11,115		(1,232)
Accrued income taxes		99		-
Accounts payable, accrued expenses and other liabilities		(8,855)		(24,752)
Net cash provided by operating activities		54,227		38,313
Investing Activities:
Expenditures for property and equipment		(3,224)		(8,762)
Purchase of short-term investments		(122,819)		(15,771)
Sales of short-term investments		58,113		79,764
Purchase of other assets		(143)		(657)
Sales of other assets		4		6
Net cash (used)/provided in investing activities		(68,069)		54,580
Financing Activities:
Dividends paid		(24,455)		(25,466)
Repurchase of common stock		(13,344)		(35,708)
Proceeds from line of credit		-		21,000
Payments to line of credit		-		(21,000)
Proceeds from employee stock purchase plan		518		443
Proceeds from stock options exercised		189		95
Net cash used in financing activities		(37,092)		(60,636)
Net increase/(decrease) in cash, cash equivalents, and restricted cash		(50,934)		32,257
Cash, cash equivalents, and restricted cash at beginning of period		81,264		49,618
Effect of exchange rate on cash		-		-
Cash, cash equivalents, and restricted cash at end of period	$	30,330	$	81,875
Non-cash activity:
Accrued other assets and property and equipment	$	360	$	1,012
Accrued treasury stock		-		195

See notes to condensed consolidated financial statements (unaudited).

6

Table of Contents

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS ANDNINE MONTHS ENDED NOVEMBER 3, 2018 AND OCTOBER 28, 2017

NOTE 1 - GENERAL:

The condensed consolidated financial statements have been prepared from the accounting records of The Cato Corporation and its wholly-owned subsidiaries (the “Company”), and all amounts shown as of and for the periods ended November 3, 2018 and October 28, 2017 are unaudited.  In the opinion of management, all adjustments considered necessary for a fair statement have been included.  All such adjustments are of a normal, recurring nature unless otherwise noted.  The results of the interim period may not be indicative of the results expected for the entire year.

The interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 3, 2018.  Amounts as of February 3, 2018 have been derived from the audited balance sheet, but do not include all disclosures required by accounting principles generally accepted in the United States of America.

On November 20, 2018, the Board of Directors maintained the quarterly dividend at $0.33 per share and increased, by 2 million shares, the authorization to purchase shares under the Company’s share repurchase program.

Recently Adopted Accounting Policies

In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” that supersedes most current revenue recognition guidance and modifies the accounting treatment for certain costs associated with revenue generation. The core principle of the revised revenue recognition standard is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those good or services, and provides several steps to apply to achieve that principle. In addition, the new guidance enhances disclosure requirements to include more information about specific revenue contracts entered into by the entity. Effective at the beginning of fiscal 2018 the Company adopted this new standard. 

The Company has elected the modified retrospective approach to transition to Topic 606.  As required by this expedient, the Company assessed its open contracts with customers at February 3, 2018 to determine the cumulative effect of initially applying this standard.  The Company concluded that the cumulative effect of initially applying this standard is not material.  In addition, the Company assessed the financial line items impacted by adopting this standard compared to the previous revenue guidance.  The Company concluded that any differences in financial statement line items are not material. Please refer to Note 11, Revenue Recognition, for incremental disclosures related to this adoption.

In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force)." This standard requires that restricted cash and restricted cash equivalents be included in cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown in the statement of cash flows. The Company adopted the provisions of ASU 2016-18 in the first quarter of 2018 using the retrospective transition method.  The new guidance did not have a material impact on the financial statements.

6

Table of Contents

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS ANDNINE MONTHS ENDED NOVEMBER 3, 2018 AND OCTOBER 28, 2017

NOTE 2 - EARNINGS PER SHARE:

Accounting Standard Codification (“ASC”) 260 – Earnings Per Share requires dual presentation of basic and diluted Earnings Per Share (“EPS”) on the face of all income statements for all entities with complex capital structures.  The Company has presented one basic EPS and one diluted EPS amount for all common shares in the accompanying Condensed Consolidated Statements of Income and Comprehensive Income.  While the Company’s certificate of incorporation provides the right for the Board of Directors to declare dividends on Class A shares without declaration of commensurate dividends on Class B shares, the Company has historically paid the same dividends to both Class A and Class B shareholders and the Board of Directors has resolved to continue this practice.  Accordingly, the Company’s allocation of income for purposes of the EPS computation is the same for Class A and Class B shares and the EPS amounts reported herein are applicable to both Class A and Class B shares.

Basic EPS is computed as net income less earnings allocated to non-vested equity awards divided by the weighted average number of common shares outstanding for the period.  Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock options and the Employee Stock Purchase Plan.   

				Three Months Ended				Nine Months Ended
				November 3, 2018		October 28, 2017		November 3, 2018		October 28, 2017
		(Dollars in thousands)
Numerator
	Net earnings/(loss)		$	3,800	$	2,694	$	33,693	$	24,045
	Earnings/(loss) allocated to non-vested equity awards			(107)		(56)		(951)		(531)
	Net earnings/(loss) available to common stockholders		$	3,693	$	2,638	$	32,742	$	23,514
Denominator
	Basic weighted average common shares outstanding			23,820,477		24,537,974		24,051,185		25,150,377
	Diluted weighted average common shares outstanding			23,820,477		24,537,974		24,051,185		25,150,377
Net income/(loss) per common share
	Basic earnings/(loss) per share		$	0.16	$	0.11	$	1.36	$	0.93
	Diluted earnings/(loss) per share		$	0.16	$	0.11	$	1.36	$	0.93

7

Table of Contents

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS ANDNINE MONTHS ENDED NOVEMBER 3, 2018 AND OCTOBER 28, 2017

NOTE 3 – ACCUMULATED OTHER COMPREHENSIVE INCOME:

The following table sets forth information regarding the reclassification out of Accumulated other comprehensive income (in thousands) for the three months ended November 3, 2018:

	Changes in Accumulated Other
	Comprehensive Income (a)
			Unrealized Gains
			and (Losses) on
			Available-for-Sale
			Securities
Beginning Balance at August 4, 2018		$	(399)
Other comprehensive income before
reclassification			(373)
Amounts reclassified from accumulated
other comprehensive income (b)			-
Net current-period other comprehensive income			(373)
Ending Balance at November 3, 2018		$	(772)
(a) All amounts are net-of-tax. Amounts in parentheses indicate a debit/reduction to other comprehensive income.
(b) Includes $0 impact of accumulated other comprehensive income reclassifications into Interest and other income for net gains on available-for-sale securities. The tax impact of this reclassification was $0.

The following table sets forth information regarding the reclassification out of Accumulated other comprehensive income (in thousands) for the nine months ended November 3, 2018:

	Changes in Accumulated Other
	Comprehensive Income (a)
			Unrealized Gains
			and (Losses) on
			Available-for-Sale
			Securities
Beginning Balance at February 3, 2018		$	(321)
Other comprehensive income before
reclassification			(504)
Amounts reclassified from accumulated
other comprehensive income (b)			53
Net current-period other comprehensive income			(451)
Ending Balance at November 3, 2018		$	(772)
(a) All amounts are net-of-tax. Amounts in parentheses indicate a debit/reduction to other comprehensive income.
(b) Includes $70 impact of accumulated other comprehensive income reclassifications into Interest and other income for net gains on available-for-sale securities. The tax impact of this reclassification was $17.

8

Table of Contents

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS ANDNINE MONTHS ENDED NOVEMBER 3, 2018 AND OCTOBER 28, 2017

NOTE 3 – ACCUMULATED OTHER COMPREHENSIVE INCOME (CONTINUED):

The following table sets forth information regarding the reclassification out of Accumulated other comprehensive income (in thousands) for the three months ended October 28, 2017:

	Changes in Accumulated Other
	Comprehensive Income (a)
			Unrealized Gains
			and (Losses) on
			Available-for-Sale
			Securities
Beginning Balance at July 29, 2017		$	411
Other comprehensive income before
reclassifications			(144)
Amounts reclassified from accumulated
other comprehensive income (b)			(26)
Net current-period other comprehensive income			(170)
Ending Balance at October 28, 2017		$	241
(a) All amounts are net-of-tax. Amounts in parentheses indicate a debit/reduction to other comprehensive income.
(b) Includes ($41) impact of Accumulated other comprehensive income reclassifications into Interest and other income for net gains on available-for-sale securities. The tax impact of this reclassification was ($15).

The following table sets forth information regarding the reclassification out of Accumulated other comprehensive income (in thousands) for the nine months ended October 28, 2017:

	Changes in Accumulated Other
	Comprehensive Income (a)
			Unrealized Gains
			and (Losses) on
			Available-for-Sale
			Securities
Beginning Balance at January 28, 2017		$	(214)
Other comprehensive income before
reclassifications			478
Amounts reclassified from accumulated
other comprehensive income (b)			(23)
Net current-period other comprehensive income			455
Ending Balance at October 28, 2017		$	241
(a) All amounts are net-of-tax. Amounts in parentheses indicate a debit/reduction to other comprehensive income.
(b) Includes ($36) impact of Accumulated other comprehensive income reclassifications into Interest and other income for net gains on available-for-sale securities. The tax impact of this reclassification was ($13).

9

Table of Contents

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS ANDNINE MONTHS ENDED NOVEMBER 3, 2018 AND OCTOBER 28, 2017

NOTE 4 – FINANCING ARRANGEMENTS:

As of November 3, 2018, the Company had an unsecured revolving credit agreement to borrow $35.0 million less the balance of any revocable letters of credit as discussed below.  The revolving credit agreement is committed until August 2019.  The credit agreement contains various financial covenants and limitations, including the maintenance of specific financial ratios with which the Company was in compliance as of November 3, 2018.  There were no borrowings outstanding under this credit facility during the periods ended November 3, 2018 or February 3, 2018.  The weighted average interest rate under the credit facility was zero at November 3, 2018 due to no borrowings outstanding.

At November 3, 2018 and February 3, 2018, the Company had no outstanding revocable letters of credit relating to purchase commitments.

NOTE 5 – REPORTABLE SEGMENT INFORMATION:

The Company has determined that it has four operating segments, as defined under ASC 280-10, including Cato, It’s Fashion, Versona and Credit.  As outlined in ASC 280-10, the Company has two reportable segments: Retail and Credit.  The Company has aggregated its three retail operating segments, including e-commerce, based on the aggregation criteria outlined in ASC 280-10, which states that two or more operating segments may be aggregated into a single reportable segment if aggregation is consistent with the objective and basic principles of ASC 280-10, which require the segments to have similar economic characteristics, products, production processes, clients and methods of distribution. 

The Company’s retail operating segments have similar economic characteristics and similar operating, financial and competitive risks.  They are similar in nature of product, as they all offer women’s apparel, shoes and accessories.  Merchandise inventory for the Company’s retail operating segments is sourced from the same countries and some of the same vendors, using similar production processes.  Merchandise for the Company’s operating segments is distributed to retail stores in a similar manner through the Company’s single distribution center and is subsequently distributed to clients in a similar manner.

The Company operates its women’s fashion specialty retail stores in 33 states as of November 3, 2018, principally in the southeastern United States. The Company offers its own credit card to its customers and all credit authorizations, payment processing and collection efforts are performed by a separate subsidiary of the Company.

10

Table of Contents

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS ANDNINE MONTHS ENDED NOVEMBER 3, 2018 AND OCTOBER 28, 2017

NOTE 5 – REPORTABLE SEGMENT INFORMATION (CONTINUED):

The following schedule summarizes certain segment information (in thousands):

Three Months Ended				Nine Months Ended
November 3, 2018	Retail	Credit	Total	November 3, 2018	Retail	Credit	Total
Revenues	$189,055	$957	$190,012	Revenues	$634,360	$2,869	$637,229
Depreciation	4,088	6	4,094	Depreciation	12,452	18	12,470
Interest and other income	(1,374)	-	(1,374)	Interest and other income	(3,559)	-	(3,559)
Income/(Loss) before    income taxes	2,140	373	2,513	Income/(Loss) before    income taxes	35,159	1,441	36,600
Capital expenditures	1,345	-	1,345	Capital expenditures	3,224	-	3,224
Three Months Ended				Nine Months Ended
October 28, 2017	Retail	Credit	Total	October 28, 2017	Retail	Credit	Total
Revenues	$189,263	$1,010	$190,273	Revenues	$633,816	$3,159	$636,975
Depreciation	5,039	8	5,047	Depreciation	14,958	31	14,989
Interest and other income	(1,200)	-	(1,200)	Interest and other income	(3,472)	-	(3,472)
Income/(Loss) before    income taxes	(313)	177	(136)	Income/(Loss) before    income taxes	22,872	921	23,793
Capital expenditures	2,337	-	2,337	Capital expenditures	8,762	-	8,762
	Retail	Credit	Total
Total assets as of November 3, 2018	$437,711	$69,182	$506,893
Total assets as of February 3, 2018	469,652	46,424	516,076

The Company evaluates segment performance based on income before taxes.  The Company does not allocate certain corporate expenses or income taxes to the credit segment.

The following schedule summarizes the direct expenses of the credit segment, which are reflected in Selling, general and administrative expenses (in thousands):

	Three Months Ended				Nine Months Ended
		November 3, 2018		October 28, 2017		November 3, 2018		October 28, 2017
Bad debt expense	$	-	$	208	$	-	$	466
Payroll		179		210		571		654
Postage		128		133		379		406
Other expenses		271		274		460		681
Total expenses	$	578	$	825	$	1,410	$	2,207

11

Table of Contents

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS ANDNINE MONTHS ENDED NOVEMBER 3, 2018 AND OCTOBER 28, 2017

NOTE 6 – STOCK-BASED COMPENSATION:

As of November 3, 2018, the Company had four long-term compensation plans pursuant to which stock-based compensation was outstanding or could be granted. The Company’s 1987 Non-Qualified Stock Option Plan is for the granting of options to officers and key employees.  As of November 3, 2018, there were no available stock options for grant. The 2018 Incentive Compensation Plan, 2013 Incentive Compensation Plan and 2004 Amended and Restated Incentive Compensation Plan are for the granting of various forms of equity-based awards, including restricted stock and stock options for grant, to officers, directors and key employees. Effective May 24, 2018 and May 23, 2013, shares for grant were no longer available under the 2013 Incentive Compensation Plan and 2004 Amended and Restated Incentive Compensation Plan, respectively.

The following table presents the number of options and shares of restricted stock initially authorized and available for grant under each of the plans as of November 3, 2018:

	1987	2004	2013	2018
	Plan	Plan	Plan	Plan	Total
Options and/or restricted stock initially authorized	5,850,000	1,350,000	1,500,000	4,725,000	13,425,000
Options and/or restricted stock available for grant:
November 3, 2018	-	-	-	4,503,140	4,503,140

In accordance with ASC 718, the fair value of current restricted stock awards is estimated on the date of grant based on the market price of the Company’s stock and is amortized to compensation expense on a straight-line basis over the related vesting periods. As of November 3, 2018 and February 3, 2018, there was  $13,373,000 and $11,727,000, respectively, of total unrecognized compensation expense related to nonvested restricted stock awards, which had a remaining weighted-average vesting period of 2.4 years and 2.0 years, respectively. The total fair value of the shares recognized as compensation expense during the three and nine months ended November 3, 2018 was $1,233,000 and $3,601,000, respectively, compared to $1,185,000 and $2,911,000, respectively, for the three and nine months ended October 28, 2017. These expenses are classified as a component of Selling, general and administrative expenses in the Condensed Consolidated Statements of Income and Comprehensive Income.

The following summary shows the changes in the shares of unvested restricted stock outstanding during the nine months ended November 3, 2018:

			Weighted Average
	Number of		Grant Date Fair
	Shares		Value Per Share
Restricted stock awards at February 3, 2018	595,179	$	30.33
Granted	354,385		16.20
Vested	(139,669)		29.87
Forfeited or expired	(27,033)		25.73
Restricted stock awards at November 3, 2018	782,862	$	24.17

12

Table of Contents

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS ANDNINE MONTHS ENDED NOVEMBER 3, 2018 AND OCTOBER 28, 2017

NOTE 6 – STOCK BASED-COMPENSATION (CONTINUED):

The Company’s Employee Stock Purchase Plan allows eligible full-time employees to purchase a limited number of shares of the Company’s Class A Common Stock during each semi-annual offering period at a 15% discount through payroll deductions. During the nine months ended November 3, 2018 and October 28, 2017, the Company sold 40,477 and 31,466 shares to employees at an average discount of $2.26 and $2.50 per share, respectively, under the Employee Stock Purchase Plan. The compensation expense recognized for the 15% discount given under the Employee Stock Purchase Plan was approximately $91,000 and $79,000 for the nine months ended November 3, 2018 and October 28, 2017, respectively. These expenses are classified as a component of Selling, general and administrative expenses.

NOTE 7 – FAIR VALUE MEASUREMENTS:

The following tables set forth information regarding the Company’s financial assets and liabilities that are measured at fair value (in thousands) as of November 3, 2018 and February 3, 2018:

			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	November 3, 2018		Assets		Inputs		Inputs
Description			Level 1		Level 2		Level 3
Assets:
State/Municipal Bonds	$	59,495	$	-	$	59,495	$	-
Corporate Bonds		90,428		-		90,428		-
U.S. Treasury Notes		5,958		5,958		-		-
Cash Surrender Value of Life Insurance		8,918		-		-		8,918
Asset-backed Securities (ABS)		24,031		-		24,031		-
Corporate Equities		708		708		-		-
Certificates of Deposit		507		507		-		-
Total Assets	$	190,045	$	7,173	$	173,954	$	8,918
Liabilities:
Deferred Compensation		(8,866)		-		-		(8,866)
Total Liabilities	$	(8,866)	$	-	$	-	$	(8,866)

			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
		February 3, 2018	Assets		Inputs		Inputs
Description			Level 1		Level 2		Level 3
Assets:
State/Municipal Bonds	$	95,983	$	-	$	95,983	$	-
Corporate Bonds		22,535		-		22,535		-
U.S. Treasury Notes		404		404		-		-
Cash Surrender Value of Life Insurance		8,900		-		-		8,900
Asset-backed Securities (ABS)		318		-		318		-
Corporate Equities		798		798		-		-
Certificates of Deposit		100		100		-		-
Total Assets	$	129,038	$	1,302	$	118,836	$	8,900
Liabilities:
Deferred Compensation		(8,951)		-		-		(8,951)
Total Liabilities	$	(8,951)	$	-	$	-	$	(8,951)

13

Table of Contents

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS ANDNINE MONTHS ENDED NOVEMBER 3, 2018 AND OCTOBER 28, 2017

The Company’s investment portfolio was primarily invested in corporate bonds and tax-exempt and taxable governmental debt securities held in managed accounts with underlying ratings of A or better at November 3, 2018 and February 3, 2018.  The state, municipal and corporate bonds have contractual maturities which range from 12 days to  29.0 years. The U.S. Treasury Notes and Certificates of Deposit have contractual maturities of five months. These securities are classified as available-for-sale and are recorded as Short-term investments, Restricted cash and investments and Other assets on the accompanying Condensed Consolidated Balance Sheets. These assets are carried at fair value with unrealized gains and losses reported net of taxes in Accumulated other comprehensive income. The asset-backed securities are bonds comprised of auto loans and bank credit cards that carry AAA ratings. The auto loan asset-backed securities are backed by static pools of auto loans that were originated and serviced by captive auto finance units, banks or finance companies.  The bank credit card asset-backed securities are backed by revolving pools of credit card receivables generated by account holders of cards from American Express, Citibank, JPMorgan Chase, Capital One, and Discover.

Additionally, at November 3, 2018, the Company had $0.7 million of corporate equities and deferred compensation plan assets of $8.9 million.  At February 3, 2018, the Company had $0.8 million of corporate equities and deferred compensation plan assets of $8.9 million.  All of these assets are recorded within Other assets in the Condensed Consolidated Balance Sheets.

Level 1 category securities are measured at fair value using quoted active market prices.  Level 2 investment securities include corporate bonds, municipal bonds and asset-backed securities for which quoted prices may not be available on active exchanges for identical instruments.  Their fair value is principally based on market values determined by management with assistance of a third-party pricing service.  Since quoted prices in active markets for identical assets are not available, these prices are determined by the pricing service using observable market information such as quotes from less active markets and/or quoted prices of securities with similar characteristics, among other factors.

Deferred compensation plan assets consist of life insurance policies. These life insurance policies are valued based on the cash surrender value of the insurance contract, which is determined based on such factors as the fair value of the underlying assets and discounted cash flow and are therefore classified within Level 3 of the valuation hierarchy. The Level 3 liability associated with the life insurance policies represents a deferred compensation obligation, the value of which is tracked via underlying insurance funds. These funds are designed to mirror existing mutual funds and money market funds that are observable and actively traded. Cash surrender values are provided by third parties and reviewed for reasonableness by the Company.

14

Table of Contents

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS ANDNINE MONTHS ENDED NOVEMBER 3, 2018 AND OCTOBER 28, 2017

The following tables summarize the change in fair value of the Company’s financial assets and liabilities measured using Level 3 inputs as of November 3, 2018 and February 3, 2018 (in thousands):

	Fair Value
	Measurements Using
	Significant Unobservable
	Asset Inputs (Level 3)
	Cash Surrender Value
Beginning Balance at February 3, 2018	$	8,900
Additions		429
Total gains or (losses)
Included in interest and other income (or changes in net assets)		(411)
Included in other comprehensive income		-
Ending Balance at November 3, 2018	$	8,918
	Fair Value
	Measurements Using
	Significant Unobservable
	Liability Inputs (Level 3)
	Deferred Compensation
Beginning Balance at February 3, 2018	$	(8,951)
Additions		(136)
Total (gains) or losses
Included in interest and other income (or changes in net assets)		221
Included in other comprehensive income		-
Ending Balance at November 3, 2018	$	(8,866)

15

Table of Contents

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS ANDNINE MONTHS ENDED NOVEMBER 3, 2018 AND OCTOBER 28, 2017

	Fair Value
	Measurements Using
	Significant Unobservable
	Asset Inputs (Level 3)
	Cash Surrender Value
Beginning Balance at January 28, 2017	$	7,973
Additions		307
Total gains or (losses)
Included in interest and other income (or changes in net assets)		620
Included in other comprehensive income		-
Ending Balance at February 3, 2018	$	8,900
	Fair Value
	Measurements Using
	Significant Unobservable
	Liability Inputs (Level 3)
	Deferred Compensation
Beginning Balance at January 28, 2017	$	(7,649)
Additions		(443)
Total (gains) or losses
Included in interest and other income (or changes in net assets)		(859)
Included in other comprehensive income		-
Ending Balance at February 3, 2018	$	(8,951)

16

Table of Contents

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS ANDNINE MONTHS ENDED NOVEMBER 3, 2018 AND OCTOBER 28, 2017

NOTE 8 – RECENT ACCOUNTING PRONOUNCEMENTS:

In November 2015, the Financial Accounting Standards Board issued an effective date for ASU 2016-02, “Leases (Topic 842),” a new leasing standard that will require substantially all leases to be recorded on the balance sheet. The standard is effective for the Company’s first quarter of its 2019 fiscal year; early adoption is permitted as of the beginning of an interim or annual reporting period. The Company is assessing what impacts this new standard will have on its Consolidated Financial Statements and expects assets and liabilities to increase. We will continue evaluating the practical expedients as they are issued.  However, the adoption of this standard will result in the recognition of a lease liability and related right-of-use asset and will materially impact our balance sheet.

NOTE 9 – INCOME TAXES:

The Company had an effective tax rate for the first nine months of 2018 of 7.9% compared to a tax benefit for the first nine months of 2017. The increase in the effective tax rate for the first nine months is attributable to higher pre-tax earnings and a higher proportion of income being generated from jurisdictions with higher tax rates, partially offset by ongoing savings from tax initiatives. The tax benefit for the three months ended November 3, 2018 was due to favorable discrete items, partially offset by taxes from jurisdictions with lower tax rates.  Our estimated annual effective tax rate for the current year includes the impact of the new tax on Global Intangible Low Taxed Income (“GILTI”).  We continue evaluating the accounting policy election for deferred taxes under GILTI.

NOTE 10 – COMMITMENTS AND CONTINGENCIES:

The Company is, from time to time, involved in routine matters including litigation incidental to the conduct of our business.  These matters may include merchandise that we sell, intellectual property, personal injuries upon premises under our control, various employment matters, including alleged discrimination, wage and hour matters, including present or former employees. During the quarter, the Company favorably settled certain litigation matters which is reflected in Selling, general and administrative expenses in the Condensed Consolidated Statements of Income and Comprehensive Income. The Company has approximately $7.2 million in accrued expenses at November 3, 2018 for these matters.

Although such matters are routine and incidental to the conduct of our business, as with any business of our size with a significant number of employees and significant merchandise sales, such litigation could result in large monetary awards. Based on information currently available, management does not believe that any reasonably possible losses arising from current pending litigation will have a material adverse effect on our condensed consolidated financial statements. However, given the inherent uncertainties involved in such matters, an adverse outcome in one or more such matters could materially and adversely affect the Company’s financial condition, results of operations and cash flows in any particular reporting period. We accrue for these matters when the liability is deemed probable and reasonably estimable.         

NOTE 11 – REVENUE RECOGNITION:

On February 3, 2018, the Company adopted ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“Topic 606”) using the modified retrospective method applied to contracts which were pending as of February 3, 2018. Financial results included in the Company’s Condensed Consolidated Statement of Income for the nine months ended November 3, 2018 are presented under Topic 606, while prior year amounts have not been restated and continue to be reported in accordance with ASC 605, “Revenue Recognition” (“Topic 605”).  As a result of adopting Topic 606, the Company did not adjust opening retained earnings.

17

Table of Contents

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS ANDNINE MONTHS ENDED NOVEMBER 3, 2018 AND OCTOBER 28, 2017

The Company recognizes sales at the point of purchase when the customer takes possession of the merchandise and pays for the purchase, generally with cash or credit. Sales from purchases made with Cato credit, gift cards and layaway sales from stores are also recorded when the customer takes possession of the merchandise. E-commerce sales are recorded when the risk of loss is transferred to the customer. Gift cards are recorded as deferred revenue until they are redeemed or forfeited. Layaway sales are recorded as deferred revenue until the customer takes possession or forfeits the merchandise. Gift cards do not have expiration dates. A provision is made for estimated merchandise returns based on sales volumes and the Company’s experience; actual returns have not varied materially from historical amounts. A provision is made for estimated write-offs associated with sales made with the Company’s proprietary credit card.  Amounts related to shipping and handling billed to customers in a sales transaction are classified as Other revenue and the costs related to shipping product to customers (billed and accrued) are classified as Cost of goods sold.

The Company offers its own proprietary credit card to customers. All credit activity is performed by the Company’s wholly-owned subsidiaries. None of the credit card receivables are secured.  The Company estimated uncollectible amounts of $681,000 and $666,000 for the nine months ended November 3, 2018 and October 28, 2017, respectively, on sales purchased on the Company’s proprietary credit card of $20.8 million and $20.1 million for the nine months ended November 3, 2018 and October 28, 2017, respectively.

The following table provides information about receivables and contract liabilities from contracts with customers (in thousands):

	Balance as of
		November 3, 2018		February 3, 2018
Proprietary Credit Card Receivables, net	$	16,380	$	16,857
Gift Card Liability	$	4,798	$	7,565

18

Table of Contents

THE CATO CORPORATION

ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS

FORWARD-LOOKING INFORMATION:

The following information should be read along with the unaudited Condensed Consolidated Financial Statements, including the accompanying Notes appearing in this report. Any of the following are “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended: (1) statements in this Form 10-Q that reflect projections or expectations of our future financial or economic performance; (2) statements that are not historical information; (3) statements of our beliefs, intentions, plans and objectives for future operations, including those contained in “Management’s Discussion and Analysis of Financial Condition and Results of Operations”; (4) statements relating to our operations or activities for our fiscal year ending February 2, 2019 (“fiscal 2018”) and beyond, including, but not limited to, statements regarding expected amounts of capital expenditures and store openings, relocations, remodels and closures; and (5) statements relating to our future contingencies. When possible, we have attempted to identify forward-looking statements by using words such as “will,” “expects,” “anticipates,” “approximates,” “believes,” “estimates,” “hopes,” “intends,” “may,” “plans,” “could,” “would,” “should” and any variations or negative formations of such words and similar expressions. We can give no assurance that actual results or events will not differ materially from those expressed or implied in any such forward-looking statements. Forward-looking statements included in this report are based on information available to us as of the filing date of this report, but 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, the following:  any actual or perceived deterioration in the conditions that drive consumer confidence and spending, including, but not limited to, levels of unemployment, fuel, energy and food costs, wage rates, tax rates, interest rates, home values, consumer net worth and the availability of credit; changes in laws or regulations affecting our business including tariffs; uncertainties regarding the impact of any governmental responses to the foregoing conditions; competitive factors and pricing pressures; our ability to predict and respond to rapidly changing fashion trends and consumer demands; adverse weather or similar conditions that may affect our sales or operations; inventory risks due to shifts in market demand, including the ability to liquidate excess inventory at anticipated margins; and other factors discussed under “Risk Factors” in Part I, Item 1A of our annual report on Form 10-K for the fiscal year ended February 3, 2018 (“fiscal 2017”), as amended or supplemented, and in other reports we file with or furnish to the Securities and Exchange Commission (“SEC”) from time to time.  We do not undertake, and expressly decline, any obligation to update any such forward-looking information contained in this report, whether as a result of new information, future events, or otherwise. 

20

Table of Contents

THE CATO CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

CRITICAL ACCOUNTING POLICIES:

The Company’s accounting policies are more fully described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for the fiscal year ended February 3, 2018. As disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” the preparation of the Company’s financial statements in conformity with generally accepted accounting principles in the United States (“GAAP”) requires management to make estimates and assumptions about future events that affect the amounts reported in the financial statements and accompanying notes. Future events and their effects cannot be determined with absolute certainty. Therefore, the determination of estimates requires the exercise of judgment. Actual results inevitably will differ from those estimates, and such differences may be material to the financial statements. The most significant accounting estimates inherent in the preparation of the Company’s financial statements include the allowance for doubtful accounts, inventory shrinkage, the calculation of potential asset impairment, workers’ compensation, general and auto insurance liabilities, reserves relating to self-insured health insurance, and uncertain tax positions.

The Company’s critical accounting policies and estimates are discussed with the Audit Committee.

21

Table of Contents

THE CATO CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

RESULTS OF OPERATIONS:

The following table sets forth, for the periods indicated, certain items in the Company's unaudited Condensed Consolidated Statements of Income as a percentage of total retail sales:

	Three Months Ended				Nine Months Ended
	November 3, 2018		October 28, 2017		November 3, 2018		October 28, 2017
Total retail sales	100.0	%	100.0	%	100.0	%	100.0	%
Other revenue	1.1		1.0		1.0		0.9
Total revenues	101.1		101.0		101.0		100.9
Cost of goods sold (exclusive of depreciation)	65.5		66.1		62.6		65.2
Selling, general and administrative (exclusive of depreciation)	32.9		33.0		31.2		30.1
Depreciation	2.2		2.7		2.0		2.4
Interest and other income	(0.7)		(0.6)		(0.6)		(0.6)
Income/(loss) before income taxes	1.3		(0.1)		5.8		3.8
Net income/(loss)	2.0		1.4		5.3		3.8

22

Table of Contents

THE CATO CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

RESULTS OF OPERATIONS (CONTINUED):

Comparison of the Three and Nine Months ended November 3, 2018 with October 28, 2017

Total retail sales for the third quarter were $187.9 million compared to last year’s third quarter sales of $188.4 million, a 0.3% decrease. The Company’s slight sales decrease in the third quarter of fiscal 2018 is primarily due to closed stores and the impact of the shift in weeks for the quarter partially offset by a 1% increase in same-store sales. For the nine months ended November 3, 2018, total retail sales were $630.8 million compared to last year’s comparable nine month sales of $631.0 million. Sales in the first nine months of fiscal 2018 decreased slightly primarily due to the impact of the shift in weeks for the nine months ended November 3, 2018 and October 28, 2017, partially offset by a 1% increase in same-store sales. Same-store sales include stores that have been open more than 15 months.  Stores that have been relocated or expanded are also included in the same-store sales calculation after they have been open more than 15 months.  The method of calculating same-store sales varies across the retail industry.  As a result, our same-store sales calculation may not be comparable to similarly titled measures reported by other companies. E-commerce sales were less than 2.5% of sales for the nine months ended November 3, 2018 and are included in the same-store sales calculation.  Total revenues, comprised of retail sales and other revenue (principally finance charges and late fees on customer accounts receivable, gift card breakage and layaway fees), were $190.0 million and $637.2 million for the three and nine months ended November 3, 2018, compared to $190.3 million and $637.0 million for the three and nine months ended October 28, 2017, respectively. The Company operated 1,350 stores at November 3, 2018 compared to 1,370 stores at the end of last year’s third quarter.  For the first nine months of fiscal 2018, the Company relocated one store and closed one store.  In total, the Company currently expects to relocate one store and close 35 stores in fiscal 2018.

Credit revenue of $1.0 million represented 0.5% of total revenues in the third quarter of fiscal 2018, compared to 2017 credit revenue of $1.0 million or 0.5% of total revenues.  Credit revenue decreased slightly for the most recent comparable period due to lower finance charge income under the Company’s proprietary credit card. Credit revenue is comprised of interest earned on the Company’s private label credit card portfolio and related fee income.  Related expenses principally include bad debt expense, payroll, postage and other administrative expenses and totaled $0.6 million in the third quarter of fiscal 2018, compared to last year’s third quarter expense of $0.8 million.

Other revenue in total, as included in total revenues, was $2.1 million and $6.5 million for the three and nine months ended November 3, 2018, compared to $1.9 million and $5.9 million for the prior year’s comparable three and nine month periods. The overall increase in the three and nine months ended November 3, 2018 is primarily due to including gift card breakage income as prescribed in Topic 606.

Cost of goods sold was $123.0 million, or 65.5% of retail sales and $395.1 million or 62.6% of retail sales for the three and nine months ended November 3, 2018, compared to $124.5 million, or 66.1% of retail sales and $411.5 million, or 65.2% of retail sales for the comparable three and nine month periods of fiscal 2017.  The overall decrease in cost of goods sold as a percent of retail sales for the third quarter of fiscal 2018 resulted primarily from higher sales of regular priced goods. In addition, occupancy, purchasing and sourcing costs as a percent of retail sales decreased. Cost of goods sold includes merchandise costs (net of discounts and allowances), buying costs, distribution costs, occupancy costs, freight and inventory shrinkage.  Net merchandise costs and in-bound freight are capitalized as inventory costs.  Buying and distribution costs include payroll, payroll-related costs and operating expenses for the buying departments and distribution center.  Occupancy costs include rent, real estate taxes, insurance, common area maintenance, utilities and maintenance for stores and distribution facilities. Total gross margin dollars (retail sales less cost of goods sold exclusive of depreciation) increased by 1.6% to $64.9 million for the third quarter of fiscal 2018 and increased by 7.4% to $235.7 million for the first nine months of fiscal 2018 compared to $63.9 million and $219.5 million for the prior year’s comparable three and nine months of fiscal 2017.  Gross margin as presented may not be comparable to those of other entities.

23

Table of Contents

THE CATO CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

Selling, general and administrative expenses (“SG&A”) primarily include corporate and store payroll, related payroll taxes and benefits, insurance, supplies, advertising, bank and credit card processing fees and bad debts.  SG&A expenses were $61.8 million, or 32.9% of retail sales and $196.6 million, or 31.2% of retail sales for the third quarter and first nine months of fiscal 2018, respectively, compared to $62.1 million, or 33.0% of retail sales and $190.2 million, or 30.1% of retail sales for the prior year’s comparable three and nine month periods.  The slight decrease in SG&A expense for the third quarter was primarily attributable to a reduction in litigation expense, partially  offset by an increase in incentive compensation. The increase in SG&A for the first nine months of fiscal 2018 was primarily attributable to higher incentive compensation and insurance costs, partially offset by favorable litigation settlements.

Depreciation expense was $4.1 million, or 2.2% of retail sales and $12.5 million, or 2.0% of retail sales for the third quarter and first nine months of fiscal 2018, respectively, compared to $5.0 million, or 2.7% of retail sales and $15.0 million or 2.4% of retail sales for the comparable three and nine month periods of fiscal 2017, respectively. 

Interest and other income was $1.4 million, or 0.7% of retail sales and $3.6 million, or 0.6% of retail sales for the three and nine months ended November 3, 2018, respectively, compared to $1.2 million, or 0.6% of retail sales and $3.5 million, or 0.6% of retail sales for the comparable three and nine month periods of fiscal 2017, respectively.  The increase for the first nine months of fiscal 2018 compared to 2017 is primarily attributable to an increase in short-term investments, partially offset by gift card breakage income being included in fiscal 2017.

Income tax benefit was $1.3 million and income tax expense was $2.9 million for the third quarter and first nine months of fiscal 2018, respectively, compared to an income tax benefit of $2.8 million and $0.3 million for the comparable three and nine month periods of fiscal 2017, respectively. For the first nine months of 2018, the Company’s effective tax rate was 7.9%. The increase in the effective tax rate for the first nine months is attributable to higher pre-tax earnings and a higher proportion of income being generated from jurisdictions with higher tax rates, partially offset by ongoing savings from tax initiatives. Our estimated annual effective tax rate for the current year includes the impact of the new tax on Global Intangible Low Taxed Income (“GILTI”).  We continue evaluating the accounting policy election for deferred taxes under GILTI.

LIQUIDITY, CAPITAL RESOURCES AND MARKET RISK:

The Company has consistently maintained a strong liquidity position. Cash provided by operating activities during the first nine months of fiscal 2018 was $54.2 million as compared to $38.3 million in the first nine months of fiscal 2017. These amounts enable the Company to fund its regular operating needs, capital expenditure program, cash dividend payments and share repurchases.  In addition, the Company maintains a $35.0 million unsecured revolving credit facility for short-term financing of seasonal cash needs. There were no outstanding borrowings on this facility at November 3, 2018 and February 3, 2018.

Cash provided by operating activities for the first nine months of fiscal 2018 was primarily generated by earnings adjusted for depreciation and changes in working capital. The increase of $15.9 million for the first nine months of fiscal 2018 as compared to the first nine months of fiscal 2017 was primarily due to an increase in net income and a decrease in prepaid and other assets, partially offset by an increase in accounts receivable.

24

Table of Contents

THE CATO CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

The Company believes that its cash, cash equivalents and short-term investments, together with cash flows from operations and borrowings available under its revolving credit agreement, will be adequate to fund the Company’s regular operating requirements, expected capital expenditures, dividends and share repurchases for fiscal 2018 and the next 12 months.

At November 3, 2018, the Company had working capital of $236.8 million compared to $233.4 million at February 3, 2018.

At November 3, 2018 and February 3, 2018, the Company had an unsecured revolving credit agreement, which provides for borrowings of up to $35.0 million, less the value of revocable letters of credit discussed below.  The revolving credit agreement is committed until August 2019. The credit agreement contains various financial covenants and limitations, including the maintenance of specific financial ratios with which the Company was in compliance as of November 3, 2018. There were no borrowings outstanding under the credit facility as of November 3, 2018 and February 3, 2018.

At November 3, 2018 and February 3, 2018, the Company had no outstanding revocable letters of credit relating to purchase commitments.

Expenditures for property and equipment totaled $3.2 million in the first nine months of fiscal 2018, compared to $8.8 million in last fiscal year’s first nine months.  The expenditures for the first nine months of fiscal 2018 were primarily for additional investments in existing stores and information technology. For the full fiscal 2018 year, the Company expects to invest approximately $5.0 million for capital expenditures.

Net cash used by investing activities totaled $68.1 million in the first nine months of fiscal 2018 compared to net cash of $54.6 million provided by investing activities in the comparable period of 2017.  Net cash used in 2018 is primarily attributable to higher net purchases of short term investments, partially offset by lower capital expenditures.

Net cash used in financing activities totaled $37.1 million in the first nine months of fiscal 2018 compared to $60.6 million used in the comparable period of fiscal 2017.  The decrease was primarily due to lower share repurchase amounts.

As of November 3, 2018, the Company had 19,002 shares remaining in open authorizations under its share repurchase program. 

On November 20, 2018, the Board of Directors maintained the quarterly dividend at $0.33 per share and increased, by 2 million shares, the authorization to purchase shares under the Company’s shares repurchase program. 

The Company does not use derivative financial instruments.

The Company’s investment portfolio was primarily invested in corporate bonds and tax-exempt and taxable governmental debt securities held in managed accounts with underlying ratings of A or better at November 3, 2018 and February 3, 2018.  The state, municipal and corporate bonds have contractual maturities which range from 12 days to 29.0 years. The U.S. Treasury Notes and Certificates of Deposit have contractual maturities of five months. These securities are classified as available-for-sale and are recorded as Short-term investments, Restricted cash and investments and Other assets on the accompanying Condensed Consolidated Balance Sheets. These assets are carried at fair value with unrealized gains and losses reported net of taxes in Accumulated other comprehensive income. The asset-backed securities are bonds comprised of auto loans and bank credit cards that carry AAA ratings. The auto loan asset-backed securities are backed by static pools of auto loans that were originated and serviced by captive auto finance units, banks or finance companies.  The bank credit card asset-backed securities are backed by revolving pools of credit card receivables generated by account holders of cards from American Express, Citibank, JPMorgan Chase, Capital One, and Discover.

25

Table of Contents

THE CATO CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

Additionally, at November 3, 2018, the Company had $0.7 million of corporate equities and deferred compensation plan assets of $8.9 million.  At February 3, 2018, the Company had $0.8 million of corporate equities and deferred compensation plan assets of $8.9 million.  All of these assets are recorded within Other assets in the Condensed Consolidated Balance Sheets.

See Note 7, Fair Value Measurements.

RECENT ACCOUNTING PRONOUNCEMENTS:

See Note 8, Recent Accounting Pronouncements.

26

Table of Contents

THE CATO CORPORATION

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK:

The Company is subject to market rate risk from exposure to changes in interest rates based on its financing, investing and cash management activities, but the Company does not believe such exposure is material.

ITEM 4. CONTROLS AND PROCEDURES:

We carried out an evaluation, with the participation of our Principal Executive Officer and Principal Financial Officer, of the effectiveness of our disclosure controls and procedures as of November 3, 2018.  Based on this evaluation, our Principal Executive Officer and Principal Financial Officer concluded that, as of November 3, 2018, our disclosure controls and procedures, as defined in Rule 13a-15(e), under the Securities Exchange Act of 1934 (the “Exchange Act”), were effective to ensure that information we are required to disclose in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to our management, including our Principal Executive Officer and Principal Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING:

No change in the Company’s internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f)) has occurred during the Company’s fiscal quarter ended November 3, 2018 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

27

Table of Contents

THE CATO CORPORATION

PART II OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS:

            Not Applicable

ITEM 1A.  RISK FACTORS:

            In addition to the other information in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for our fiscal year ended February 3, 2018.  These risks could materially affect our business, financial condition or future results; however, they are not the only risks we face.  Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially adversely affect our business, financial condition or results of operations.

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS:

      The following table summarizes the Company’s purchases of its common stock for the three months ended November 3, 2018:

ISSUER PURCHASES OF EQUITY SECURITIES

				Total Number of	Maximum Number
				Shares Purchased as	(or Approximate Dollar
	Total Number		Average	Part of Publicly	Value) of Shares that may
Fiscal	of Shares		Price Paid	Announced Plans or	Yet be Purchased Under
Period	Purchased		per Share (1)	Programs (2)	The Plans or Programs (2)
August 2018	79,300	$	24.40	79,300
September 2018	-		-	-
October 2018	-		-	-
Total	79,300	$	24.40	79,300	19,002

(1)Prices include trading costs.

(2)As of August 4, 2018, the Company’s share repurchase program had 98,302 shares remaining in open authorizations. During the third quarter ending November 3, 2018, the Company repurchased and retired 79,300 shares under this program for approximately $1,934,872 or an average market price of $24.40 per share. As of the third quarter ended November 3, 2018, the Company had 19,002 shares remaining in open authorizations. On November 20, 2018, the Board of Directors increased, by 2 million shares, the authorization to purchase shares under the Company’s share repurchase program. There is no specified expiration date for the Company’s repurchase program.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES:

      Not Applicable

28

Table of Contents

THE CATO CORPORATION

PART II OTHER INFORMATION

ITEM 4.  MINE SAFETY DISCLOSURES:

      Not Applicable

ITEM 5.  OTHER INFORMATION:

      Not Applicable

ITEM 6.  EXHIBITS:

Exhibit No.	Item
3.1	Registrant’s Restated Certificate of Incorporation dated March 6, 1987, incorporated by reference to Exhibit 4.1 to Form S-8 of the Registrant filed February 7, 2000 (SEC File No. 333-96283).
3.2	Registrant’s By Laws, incorporated by reference to Exhibit 99.2 to Form 8-K of the Registrant Filed December 10, 2007.
31.1*	Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer.
31.2*	Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer.
32.1*	Section 1350 Certification of Principal Executive Officer.
32.2*	Section 1350 Certification of Principal Financial Officer.
101.1*	The following materials from Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended November 3, 2018, formatted in XBRL:  (i) Condensed Consolidated Statements of Income and Comprehensive Income for the Three Months and Nine Months Ended November 3, 2018 and October 28, 2017;  (ii) Condensed Consolidated Balance Sheets at November 3, 2018 and February 3, 2018;  (iii) Condensed Consolidated Statements of Cash Flows for the Nine Months Ended November 3, 2018 and October 28, 2017; and (iv) Notes to Condensed Consolidated Financial Statements.

                      * Submitted electronically herewith.      

29

Table of Contents

THE CATO CORPORATION

PART II OTHER INFORMATION

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

                                                                                    THE CATO CORPORATION

November 30, 2018	/s/ John P. D. Cato
Date	John P. D. Cato Chairman, President and Chief Executive Officer
November 30, 2018	/s/ John R. Howe
Date	John R. Howe Executive Vice President Chief Financial Officer

30

EX-31

EXHIBIT 31.1

PRINCIPAL EXECUTIVE OFFICER CERTIFICATION PURSUANT TO

SECURITIES EXCHANGE ACT OF 1934 RULE 13a-14(a)/15d-14(a), AS ADOPTED

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, John P. D. Cato, certify that:

1.	I have reviewed this report on Form 10-Q of The Cato Corporation (the “registrant”);
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 30, 2018

/s/ John P. D. Cato

John P. D. Cato

Chairman, President and

Chief Executive Officer

EX-31

EXHIBIT 31.2

PRINCIPAL FINANCIAL OFFICER CERTIFICATION PURSUANT TO

SECURITIES EXCHANGE ACT OF 1934 RULE 13a-14(a)/15d-14(a), AS ADOPTED

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, John R. Howe, certify that:

1.	I have reviewed this report on Form 10-Q of The Cato Corporation (the “registrant”);
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 30, 2018

/s/ John R. Howe

John R. Howe

Executive Vice President

Chief Financial Officer

EX-32

EXHIBIT 32.1

CERTIFICATION OF PERIODIC REPORT

I, John P. D. Cato, Chairman, President and Chief Executive Officer of The Cato Corporation (the “Company”), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that on the date of this Certification:

1.the Form 10-Q of the Company for the quarter ended November 3, 2018 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: November 30, 2018

/s/ John P. D. Cato

John P. D. Cato

Chairman, President and

Chief Executive Officer

EX-32

EXHIBIT 32.2

CERTIFICATION OF PERIODIC REPORT

I, John R. Howe, Executive Vice President, Chief Financial Officer of The Cato Corporation (the “Company”), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that on the date of this Certification:

1.the Form 10-Q of the Company for the quarter ended November 3, 2018 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.  the information contained in the Report fairly presents, in all material respects, the financial condition and
     results of operations of the Company.

Dated: November 30, 2018

/s/ John R. Howe

John R. Howe

Executive Vice President

Chief Financial Officer

XML

Document and Entity Information	3 Months Ended
	Nov. 03, 2018 shares
Document and Entity Information [Abstract]
Entity Registrant Name	Cato Corp
Entity Central Index Key	0000018255
Document Type	10-Q
Document Period End Date	Nov. 03, 2018
Amendment Flag	false
Current Fiscal Year End Date	--02-02
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Class of Stock [Line Items]
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Entity Emerging Growth Company	false
Entity Small Business	false
Common Class A [Member]
Class of Stock [Line Items]
Entity Common Stock, Shares Outstanding (actual number)	22,844,871
Common Class B [Member]
Class of Stock [Line Items]
Entity Common Stock, Shares Outstanding (actual number)	1,763,652

XML

Condensed Consolidated Income Statements Of Income and Comprehensive Income - USD ($)	3 Months Ended		9 Months Ended
	Nov. 03, 2018	Oct. 28, 2017	Nov. 03, 2018	Oct. 28, 2017
Revenues
Retail sales	$ 187,892,000	$ 188,368,000	$ 630,765,000	$ 631,049,000
Other Revenue (principally finance charges, late fees and layaway charges)	2,120,000	1,905,000	6,464,000	5,926,000
Total revenues	190,012,000	190,273,000	637,229,000	636,975,000
COSTS AND EXPENSES, NET
Cost of goods sold (exclusive of depreciation shown below)	123,014,000	124,462,000	395,102,000	411,503,000
Selling, general and administrative (exclusive of depreciation shown below)	61,765,000	62,100,000	196,616,000	190,162,000
Depreciation	4,094,000	5,047,000	12,470,000	14,989,000
Interest and other income	1,374,000	1,200,000	3,559,000	3,472,000
Cost and expenses, net	187,499,000	190,409,000	600,629,000	613,182,000
Income before income taxes	2,513,000	(136,000)	36,600,000	23,793,000
Income tax expense	(1,287,000)	(2,830,000)	2,907,000	(252,000)
Net income	$ 3,800,000	$ 2,694,000	$ 33,693,000	$ 24,045,000
Basic earnings per share	$ 0.16	$ 0.11	$ 1.36	$ 0.93
Diluted earnings per share	0.16	0.11	1.36	0.93
Dividends per share	$ 0.33	$ 0.33	$ 0.99	$ 0.99
Comprehensive income
Net income	$ 3,800,000	$ 2,694,000	$ 33,693,000	$ 24,045,000
Unrealized gain on available-for-sale securities, net of deferred income taxes	(373,000)	(170,000)	(451,000)	455,000
Comprehensive Income	$ 3,427,000	$ 2,524,000	$ 33,242,000	$ 24,500,000

XML

Condensed Consolidated Income Statements Of Income and Comprehensive Income (Parenthetical) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 03, 2018	Oct. 28, 2017	Nov. 03, 2018	Oct. 28, 2017
OtherComprehensiveIncomeLossTaxParentheticalDisclosuresAbstract
Tax Effect of Unrealized Gains (Losses) On Available-For-Sale Securities	$ (117,000)	$ (101,000)	$ (141,000)	$ 272,000

XML

Consolidated Balance Sheets - USD ($)	Nov. 03, 2018	Feb. 03, 2018
Current Assets:
Cash and cash equivalents	$ 26,668,000	$ 78,047,000
Short-term investments	183,241,000	118,836,000
Restricted Cash	3,662,000	3,217,000
Restricted Short term Investments	106,000	505,000
Accounts receivable, net of allowance for doubtful accounts	37,016,000	28,018,000
Merchandise inventories	113,046,000	121,535,000
Deferred income taxes	0	0
Prepaid expenses	11,195,000	22,322,000
Total Current Assets	374,934,000	372,480,000
Property and equipment - net	99,308,000	109,368,000
DeferredTaxAssetsNetNoncurrent	11,155,000	12,570,000
Other assets	21,496,000	21,658,000
Total Assets	506,893,000	516,076,000
Current Liabilities:
Accounts payable	72,606,000	82,605,000
Accrued expenses	54,395,000	52,825,000
Accrued benefits	10,333,000	2,971,000
Accrued income taxes	779,000	680,000
Total Current Liabilities	138,113,000	139,081,000
Deferred tax liabilities noncurrent	0	0
Other noncurrent liabilities (primarily deferred rent)	42,580,000	50,642,000
Stockholders' Equity:
Preferred stock, $100 par value per share, 100,000 shares authorized, none issued	0	0
Class of Stock [Line Items]
Common stock	826,000	832,000
Additional paid-in capital	104,300,000	99,948,000
Retained earnings	221,846,000	225,894,000
Accumulated other comprehensive income	(772,000)	(321,000)
Total Stockholders' Equity	326,200,000	326,353,000
Liabilities And Stockholders Equity	506,893,000	516,076,000
Common Class A [Member]
Class of Stock [Line Items]
Common stock	767,000	774,000
Common Class B [Member]
Class of Stock [Line Items]
Common stock	$ 59,000	$ 58,000

XML

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Nov. 03, 2018	Feb. 03, 2018
Class of Stock [Line Items]
Allowance For Doubtful Accounts Receivable Current	$ 849	$ 1,148
Preferred Stock Par Or Stated Value Per Share	$ 100	$ 100
Preferred Stock Shares Authorized	100,000	100,000
Preferred Stock Shares Issued	0	0
Common Class B [Member]
Class of Stock [Line Items]
Common Stock Shares Authorized	15,000,000	15,000,000
Common Stock Shares Issued	1,763,652	1,755,601
Common Stock Par Or Stated Value Per Share	$ 0.033	$ 0.033
Common Class A [Member]
Class of Stock [Line Items]
Common Stock Shares Authorized	50,000,000	50,000,000
Common Stock Shares Issued	22,844,871	23,045,039
Common Stock Par Or Stated Value Per Share	$ 0.033	$ 0.033

XML

Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Nov. 03, 2018	Oct. 28, 2017
OPERATING ACTIVITIES
Net income	$ 33,693,000	$ 24,045,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	12,470,000	14,989,000
Provision For Doubtful Accounts	301,000	466,000
Purchase premium and premium amortization	420,000	2,747,000
Share Based Compensation	3,697,000	3,002,000
Excess tax benefits from share-based compensation	0	0
Deferred income taxes	1,556,000	1,015,000
Loss on disposal of property and equipment	530,000	611,000
Changes in operating assets and liabilities which provided (used) cash:
Accounts receivable	(9,288,000)	(497,000)
Merchandise inventories	8,489,000	17,919,000
Prepaid and other assets	11,115,000	(1,232,000)
Accrued income taxes	99,000	0
Accounts payable, accrued expenses and other liabilities	(8,855,000)	(24,752,000)
Net cash provided by operating activities	54,227,000	38,313,000
INVESTING ACTIVITIES
Capital expenditures	(3,224,000)	(8,762,000)
Purchase of short-term investments	(122,819,000)	(15,771,000)
Sales of short-term investments	58,113,000	79,764,000
Payments to Acquire Projects	(143,000)	(657,000)
Proceeds from Sale of Investment Projects	(4,000)	(6,000)
Change in restricted cash and investments	0	0
Net cash used in investing activities	(68,069,000)	54,580,000
FINANCING ACTIVITIES
Dividends paid	(24,455,000)	(25,466,000)
Repurchase of common stock	(13,344,000)	(35,708,000)
Proceeds from lines of credit	0	21,000,000
Payments to lines of credit	0	21,000,000
Proceeds from employee stock purchase plan	518,000	443,000
Excess tax benefits from share-based compensation financing activities	0	0
Proceeds From Stock Options Exercised	189,000	95,000
Net cash provided used in financing activities	(37,092,000)	(60,636,000)
Net increase in cash and cash equivalents	(50,934,000)	32,257,000
Cash, Cash Equivalents and Restricted Cash at Beginning of Period	81,264,000	49,618,000
Effect of Exchange Rate on Cash	0	0
Cash, Cash Equivalents and Restricted Cash at End of Period	30,330,000	81,875,000
Change in Accrued PPE	$ 360,000	$ 1,012,000

XML

General - Notes to Financial Statements

9 Months Ended

Nov. 03, 2018

General Dsiclosure [Abstract]

Summary of Significant Account Policies

The condensed consolidated financial statements have been prepared from the accounting records of The Cato Corporation and its wholly-owned subsidiaries (the “Company”), and all amounts shown as of and for the periods ended November 3, 2018 and October 28, 2017 are unaudited. In the opinion of management, all adjustments considered necessary for a fair statement have been included. All such adjustments are of a normal, recurring nature unless otherwise noted. The results of the interim period may not be indicative of the results expected for the entire year.

The interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 3, 2018. Amounts as of February 3, 2018 have been derived from the audited balance sheet, but do not include all disclosures required by accounting principles generally accepted in the United States of America.

On November 20, 2018, the Board of Directors maintained the quarterly dividend at $0.33 per share and increased, by 2 million shares, the authorization to purchase shares under the Company’s share repurchase program.

Recently Adopted Accounting Policies

In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” that supersedes most current revenue recognition guidance and modifies the accounting treatment for certain costs associated with revenue generation. The core principle of the revised revenue recognition standard is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those good or services, and provides several steps to apply to achieve that principle. In addition, the new guidance enhances disclosure requirements to include more information about specific revenue contracts entered into by the entity. Effective at the beginning of fiscal 2018 the Company adopted this new standard.

The Company has elected the modified retrospective approach to transition to Topic 606. As required by this expedient, the Company assessed its open contracts with customers at February 3, 2018 to determine the cumulative effect of initially applying this standard. The Company concluded that the cumulative effect of initially applying this standard is not material. In addition, the Company assessed the financial line items impacted by adopting this standard compared to the previous revenue guidance. The Company concluded that any differences in financial statement line items are not material. Please refer to Note 11, Revenue Recognition, for incremental disclosures related to this adoption.

In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force)." This standard requires that restricted cash and restricted cash equivalents be included in cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown in the statement of cash flows. The Company adopted the provisions of ASU 2016-18 in the first quarter of 2018 using the retrospective transition method. The new guidance did not have a material impact on the financial statements.

XML

Earnings Per Share - Notes to Financial Statements

3 Months Ended

Nov. 03, 2018

Earnings Per Share Disclosure [Abstract]

Earnings Per Share

NOTE 2 - EARNINGS PER SHARE:

Accounting Standard Codification (“ASC”) 260 – Earnings Per Share requires dual presentation of basic and diluted Earnings Per Share (“EPS”) on the face of all income statements for all entities with complex capital structures. The Company has presented one basic EPS and one diluted EPS amount for all common shares in the accompanying Condensed Consolidated Statements of Income and Comprehensive Income. While the Company’s certificate of incorporation provides the right for the Board of Directors to declare dividends on Class A shares without declaration of commensurate dividends on Class B shares, the Company has historically paid the same dividends to both Class A and Class B shareholders and the Board of Directors has resolved to continue this practice. Accordingly, the Company’s allocation of income for purposes of the EPS computation is the same for Class A and Class B shares and the EPS amounts reported herein are applicable to both Class A and Class B shares.

Basic EPS is computed as net income less earnings allocated to non-vested equity awards divided by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock options and the Employee Stock Purchase Plan.

				Three Months Ended				Nine Months Ended
				November 3, 2018		October 28, 2017		November 3, 2018		October 28, 2017
		(Dollars in thousands)
Numerator
	Net earnings/(loss)		$	3,800	$	2,694	$	33,693	$	24,045
	Earnings/(loss) allocated to non-vested equity awards			(107)		(56)		(951)		(531)
	Net earnings/(loss) available to common stockholders		$	3,693	$	2,638	$	32,742	$	23,514
Denominator
	Basic weighted average common shares outstanding			23,820,477		24,537,974		24,051,185		25,150,377
	Diluted weighted average common shares outstanding			23,820,477		24,537,974		24,051,185		25,150,377
Net income/(loss) per common share
	Basic earnings/(loss) per share		$	0.16	$	0.11	$	1.36	$	0.93
	Diluted earnings/(loss) per share		$	0.16	$	0.11	$	1.36	$	0.93

XML

Accumulated Other Comprehensive Income

3 Months Ended

9 Months Ended

Nov. 03, 2018

Oct. 28, 2017

Nov. 03, 2018

Oct. 28, 2017

AccumulatedOtherComprehensiveIncomeLossDisclosure[Abstract]

Accumulated Other Comprehensive Income (Loss)

NOTE 3 – ACCUMULATED OTHER COMPREHENSIVE INCOME:

The following table sets forth information regarding the reclassification out of Accumulated other comprehensive income (in thousands) for the three months endedNovember 3, 2018:

	Changes in Accumulated Other
	Comprehensive Income (a)
			Unrealized Gains
			and (Losses) on
			Available-for-Sale
			Securities
Beginning Balance at August 4, 2018		$	(399)
Other comprehensive income before
reclassification			(373)
Amounts reclassified from accumulated
other comprehensive income (b)			-
Net current-period other comprehensive income			(373)
Ending Balance at November 3, 2018		$	(772)
(a) All amounts are net-of-tax. Amounts in parentheses indicate a debit/reduction to other comprehensive income.
(b) Includes $0 impact of accumulated other comprehensive income reclassifications into Interest and other income for net gains on available-for-sale securities. The tax impact of this reclassification was $0.

NOTE 3 – ACCUMULATED OTHER COMPREHENSIVE INCOME (CONTINUED):

The following table sets forth information regarding the reclassification out of Accumulated other comprehensive income (in thousands) for the three months endedOctober 28, 2017:

	Changes in Accumulated Other
	Comprehensive Income (a)
			Unrealized Gains
			and (Losses) on
			Available-for-Sale
			Securities
Beginning Balance at July 29, 2017		$	411
Other comprehensive income before
reclassifications			(144)
Amounts reclassified from accumulated
other comprehensive income (b)			(26)
Net current-period other comprehensive income			(170)
Ending Balance at October 28, 2017		$	241
(a) All amounts are net-of-tax. Amounts in parentheses indicate a debit/reduction to other comprehensive income.
(b) Includes ($41) impact of Accumulated other comprehensive income reclassifications into Interest and other income for net gains on available-for-sale securities. The tax impact of this reclassification was ($15).

The following table sets forth information regarding the reclassification out of Accumulated other comprehensive income (in thousands)for the nine months ended November 3, 2018:

	Changes in Accumulated Other
	Comprehensive Income (a)
			Unrealized Gains
			and (Losses) on
			Available-for-Sale
			Securities
Beginning Balance at February 3, 2018		$	(321)
Other comprehensive income before
reclassification			(504)
Amounts reclassified from accumulated
other comprehensive income (b)			53
Net current-period other comprehensive income			(451)
Ending Balance at November 3, 2018		$	(772)
(a) All amounts are net-of-tax. Amounts in parentheses indicate a debit/reduction to other comprehensive income.
(b) Includes $70 impact of accumulated other comprehensive income reclassifications into Interest and other income for net gains on available-for-sale securities. The tax impact of this reclassification was $17.

The following table sets forth information regarding the reclassification out of Accumulated other comprehensive income (in thousands) for the nine months ended October 28, 2017:

	Changes in Accumulated Other
	Comprehensive Income (a)
			Unrealized Gains
			and (Losses) on
			Available-for-Sale
			Securities
Beginning Balance at January 28, 2017		$	(214)
Other comprehensive income before
reclassifications			478
Amounts reclassified from accumulated
other comprehensive income (b)			(23)
Net current-period other comprehensive income			455
Ending Balance at October 28, 2017		$	241
(a) All amounts are net-of-tax. Amounts in parentheses indicate a debit/reduction to other comprehensive income.
(b) Includes ($36) impact of Accumulated other comprehensive income reclassifications into Interest and other income for net gains on available-for-sale securities. The tax impact of this reclassification was ($13).

XML

Financing Arrangements - Notes to Financial Statements

9 Months Ended

Nov. 03, 2018

Financing Arrangements [Abstract]

Financing Arrangements

NOTE 4 – FINANCING ARRANGEMENTS:

As of November 3, 2018, the Company had an unsecured revolving credit agreement to borrow $35.0 million less the balance of any revocable letters of credit as discussed below. The revolving credit agreement is committed until August 2019. The credit agreement contains various financial covenants and limitations, including the maintenance of specific financial ratios with which the Company was in compliance as of November 3, 2018. There were no borrowings outstanding under this credit facility during the periods ended November 3, 2018 or February 3, 2018. The weighted average interest rate under the credit facility was zero at November 3, 2018 due to no borrowings outstanding.

At November 3, 2018 and February 3, 2018, the Company had no outstanding revocable letters of credit relating to purchase commitments.

XML

Reportable Segment Information - Notes to Financial Statements

9 Months Ended

Nov. 03, 2018

Reportable Segment Information [Abstract]

Reportable Segment Information

NOTE 5 – REPORTABLE SEGMENT INFORMATION:

The Company has determined that it has four operating segments, as defined under ASC 280-10, including Cato, It’s Fashion, Versona and Credit. As outlined in ASC 280-10, the Company has two reportable segments: Retail and Credit. The Company has aggregated its three retail operating segments, including e-commerce, based on the aggregation criteria outlined in ASC 280-10, which states that two or more operating segments may be aggregated into a single reportablesegment if aggregation is consistent with the objective and basic principles of ASC 280-10, which require the segments to have similar economic characteristics, products, production processes, clients and methods of distribution.

The Company’s retail operating segments have similar economic characteristics and similar operating, financial and competitive risks. They are similar in nature of product, as they all offer women’s apparel, shoes and accessories. Merchandise inventory for the Company’s retail operating segments is sourced from the same countries and some of the same vendors, using similar production processes. Merchandise for the Company’s operating segments is distributed to retail stores in a similar manner through the Company’s single distribution center and is subsequently distributed to clients in a similar manner.

The Company operates its women’s fashion specialty retail stores in 33states as of November 3, 2018, principally in the southeastern United States. The Company offers its own credit card to its customers and all credit authorizations, payment processing and collection efforts are performed by a separate subsidiary of the Company.

NOTE 5 – REPORTABLE SEGMENT INFORMATION (CONTINUED):

The following schedule summarizes certain segment information (in thousands):

Three Months Ended				Nine Months Ended
November 3, 2018	Retail	Credit	Total	November 3, 2018	Retail	Credit	Total
Revenues	$189,055	$957	$190,012	Revenues	$634,360	$2,869	$637,229
Depreciation	4,088	6	4,094	Depreciation	12,452	18	12,470
Interest and other income	(1,374)	-	(1,374)	Interest and other income	(3,559)	-	(3,559)
Income/(Loss) before income taxes	2,140	373	2,513	Income/(Loss) before income taxes	35,159	1,441	36,600
Capital expenditures	1,345	-	1,345	Capital expenditures	3,224	-	3,224
Three Months Ended				Nine Months Ended
October 28, 2017	Retail	Credit	Total	October 28, 2017	Retail	Credit	Total
Revenues	$189,263	$1,010	$190,273	Revenues	$633,816	$3,159	$636,975
Depreciation	5,039	8	5,047	Depreciation	14,958	31	14,989
Interest and other income	(1,200)	-	(1,200)	Interest and other income	(3,472)	-	(3,472)
Income/(Loss) before income taxes	(313)	177	(136)	Income/(Loss) before income taxes	22,872	921	23,793
Capital expenditures	2,337	-	2,337	Capital expenditures	8,762	-	8,762
	Retail	Credit	Total
Total assets as of November 3, 2018	$437,711	$69,182	$506,893
Total assets as of February 3, 2018	469,652	46,424	516,076

The Company evaluates segment performance based on income before taxes. The Company does not allocate certain corporate expenses or income taxes to the credit segment.

The following schedule summarizes the direct expenses of the credit segment, which are reflected in Selling, general and administrative expenses (in thousands):

	Three Months Ended				Nine Months Ended
		November 3, 2018		October 28, 2017		November 3, 2018		October 28, 2017
Bad debt expense	$	-	$	208	$	-	$	466
Payroll		179		210		571		654
Postage		128		133		379		406
Other expenses		271		274		460		681
Total expenses	$	578	$	825	$	1,410	$	2,207

XML

Stock Based Compensation - Notes to Financial Statements

9 Months Ended

Nov. 03, 2018

Disclosure Of Compensation Related Costs Sharebased Payments Abstract

Stock Based Compensation

NOTE 6 – STOCK-BASED COMPENSATION:

As of November 3, 2018, the Company had four long-term compensation plans pursuant to which stock-based compensation was outstanding or could be granted. The Company’s 1987 Non-Qualified Stock Option Plan is for the granting of options to officers and key employees. As of November 3, 2018, there were no available stock options for grant. The 2018 Incentive Compensation Plan, 2013 Incentive Compensation Plan and 2004 Amended and Restated Incentive Compensation Plan are for the granting of various forms of equity-based awards, including restricted stock and stock options for grant, to officers, directors and key employees. Effective May 24, 2018 and May 23, 2013, shares for grant were no longer available under the 2013 Incentive Compensation Plan and 2004 Amended and Restated Incentive Compensation Plan, respectively.

The following table presents the number of options and shares of restricted stock initially authorized and available for grant under each of the plans as of November 3, 2018:

	1987	2004	2013	2018
	Plan	Plan	Plan	Plan	Total
Options and/or restricted stock initially authorized	5,850,000	1,350,000	1,500,000	4,725,000	13,425,000
Options and/or restricted stock available for grant:
November 3, 2018	-	-	-	4,503,140	4,503,140

In accordance with ASC 718, the fair value of current restricted stock awards is estimated on the date of grant based on the market price of the Company’s stock and is amortized to compensation expense on a straight-line basis over the related vesting periods. As of November 3, 2018 and February 3, 2018, there was $13,373,000 and $11,727,000, respectively, of total unrecognized compensation expense related to nonvested restricted stock awards, which had a remaining weighted-average vesting period of 2.4 years and2.0 years, respectively. The total fair value of the shares recognized as compensation expense during the three and nine months endedNovember 3, 2018 was $1,233,000 and $3,601,000, respectively, compared to $1,185,000 and $2,911,000, respectively, for the three and nine months endedOctober 28, 2017. These expenses are classified as a component of Selling, general and administrative expenses in the Condensed Consolidated Statements of Income and Comprehensive Income.

The following summary shows the changes in the shares of unvested restricted stock outstanding during the nine months endedNovember 3, 2018:

			Weighted Average
	Number of		Grant Date Fair
	Shares		Value Per Share
Restricted stock awards at February 3, 2018	595,179	$	30.33
Granted	354,385		16.20
Vested	(139,669)		29.87
Forfeited or expired	(27,033)		25.73
Restricted stock awards at November 3, 2018	782,862	$	24.17

NOTE 6 – STOCK BASED-COMPENSATION (CONTINUED):

The Company’s Employee Stock Purchase Plan allows eligible full-time employees to purchase a limited number of shares of the Company’s Class A Common Stock during each semi-annual offering period at a 15% discount through payroll deductions. During the nine months endedNovember 3, 2018 and October 28, 2017, the Company sold 40,477 and 31,466 shares to employees at an average discount of $2.26 and $2.50per share, respectively, under the Employee Stock Purchase Plan. The compensation expense recognized for the 15% discount given under the Employee Stock Purchase Plan was approximately $91,000 and $79,000for the nine months endedNovember 3, 2018 and October 28, 2017, respectively. These expenses are classified as a component of Selling, general and administrative expenses.

XML

Fair Value Measurements - Notes to Financial Statements

9 Months Ended

12 Months Ended

Nov. 03, 2018

Feb. 03, 2018

Fair Value Measurements [Abstract]

Fair Value Disclosures Text Block

NOTE 7 – FAIR VALUE MEASUREMENTS:

The following tables set forth information regarding the Company’s financial assets and liabilities that are measured at fair value (in thousands) as of November 3, 2018 and February 3, 2018

			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	November 3, 2018		Assets		Inputs		Inputs
Description			Level 1		Level 2		Level 3
Assets:
State/Municipal Bonds	$	59,495	$	-	$	59,495	$	-
Corporate Bonds		90,428		-		90,428		-
U.S. Treasury Notes		5,958		5,958		-		-
Cash Surrender Value of Life Insurance		8,918		-		-		8,918
Asset-backed Securities (ABS)		24,031		-		24,031		-
Corporate Equities		708		708		-		-
Certificates of Deposit		507		507		-		-
Total Assets	$	190,045	$	7,173	$	173,954	$	8,918
Liabilities:
Deferred Compensation		(8,866)		-		-		(8,866)
Total Liabilities	$	(8,866)	$	-	$	-	$	(8,866)

The Company’s investment portfolio was primarily invested in corporate bonds and tax-exempt and taxable governmental debt securities held in managed accounts with underlying ratings of A or better at November 3, 2018 and February 3, 2018. The state, municipal and corporate bonds have contractual maturities which range from 12 days to 29.0 years. The U.S. Treasury Notes and Certificates of Deposit have contractual maturities of five months. These securities are classified as available-for-sale and are recorded as Short-term investments, Restricted cash and investments and Other assets on the accompanying Condensed Consolidated Balance Sheets. These assets are carried at fair value with unrealized gains and losses reported net of taxes in Accumulated other comprehensive income. The asset-backed securities are bonds comprised of auto loans and bank credit cards that carry AAA ratings. The auto loan asset-backed securities are backed by static pools of auto loans that were originated and serviced by captive auto finance units, banks or finance companies. The bank credit card asset-backed securities are backed by revolving pools of credit card receivables generated by account holders of cards from American Express, Citibank, JPMorgan Chase, Capital One, and Discover.

Additionally, at November 3, 2018, the Company had $0.7 million of corporate equities and deferred compensation plan assets of $8.9 million. At February 3, 2018, the Company had $0.8 million of corporate equities and deferred compensation plan assets of $8.9 million. All of these assets are recorded within Other assets in the Condensed Consolidated Balance Sheets.

Level 1 category securities are measured at fair value using quoted active market prices. Level 2 investment securities include corporate bonds, municipal bonds and asset-backed securities for which quoted prices may not be available on active exchanges for identical instruments. Their fair value is principally based on market values determined by management with assistance of a third-party pricing service. Since quoted prices in active markets for identical assets are not available, these prices are determined by the pricing service using observable market information such as quotes from less active markets and/or quoted prices of securities with similar characteristics, among other factors.

Deferred compensation plan assets consist of life insurance policies. These life insurance policies are valued based on the cash surrender value of the insurance contract, which is determined based on such factors as the fair value of the underlying assets and discounted cash flow and are therefore classified within Level 3 of the valuation hierarchy. The Level 3 liability associated with the life insurance policies represents a deferred compensation obligation, the value of which is tracked via underlying insurance funds. These funds are designed to mirror existing mutual funds and money market funds that are observable and actively traded. Cash surrender values are provided by third parties and reviewed for reasonableness by the Company.

The following tables summarize the change in fair value of the Company’s financial assets and liabilities measured using Level 3 inputs as of November 3, 2018 and February 3, 2018 (in thousands):

	Fair Value
	Measurements Using
	Significant Unobservable
	Asset Inputs (Level 3)
	Cash Surrender Value
Beginning Balance at February 3, 2018	$	8,900
Additions		429
Total gains or (losses)
Included in interest and other income (or changes in net assets)		(411)
Included in other comprehensive income		-
Ending Balance at November 3, 2018	$	8,918
	Fair Value
	Measurements Using
	Significant Unobservable
	Liability Inputs (Level 3)
	Deferred Compensation
Beginning Balance at February 3, 2018	$	(8,951)
Additions		(136)
Total (gains) or losses
Included in interest and other income (or changes in net assets)		221
Included in other comprehensive income		-
Ending Balance at November 3, 2018	$	(8,866)

			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
		February 3, 2018	Assets		Inputs		Inputs
Description			Level 1		Level 2		Level 3
Assets:
State/Municipal Bonds	$	95,983	$	-	$	95,983	$	-
Corporate Bonds		22,535		-		22,535		-
U.S. Treasury Notes		404		404		-		-
Cash Surrender Value of Life Insurance		8,900		-		-		8,900
Asset-backed Securities (ABS)		318		-		318		-
Corporate Equities		798		798		-		-
Certificates of Deposit		100		100		-		-
Total Assets	$	129,038	$	1,302	$	118,836	$	8,900
Liabilities:
Deferred Compensation		(8,951)		-		-		(8,951)
Total Liabilities	$	(8,951)	$	-	$	-	$	(8,951)

	Fair Value
	Measurements Using
	Significant Unobservable
	Asset Inputs (Level 3)
	Cash Surrender Value
Beginning Balance at January 28, 2017	$	7,973
Additions		307
Total gains or (losses)
Included in interest and other income (or changes in net assets)		620
Included in other comprehensive income		-
Ending Balance at February 3, 2018	$	8,900
	Fair Value
	Measurements Using
	Significant Unobservable
	Liability Inputs (Level 3)
	Deferred Compensation
Beginning Balance at January 28, 2017	$	(7,649)
Additions		(443)
Total (gains) or losses
Included in interest and other income (or changes in net assets)		(859)
Included in other comprehensive income		-
Ending Balance at February 3, 2018	$	(8,951)

XML

Recent Accounting Pronouncements - Notes to Financial Statements

9 Months Ended

Nov. 03, 2018

Recent Accounting Pronouncements [Abstract]

Recent Accounting Pronouncements

In November 2015, the Financial Accounting Standards Board issued an effective date for ASU 2016-02, “Leases (Topic 842),” a new leasing standard that will require substantially all leases to be recorded on the balance sheet. The standard is effective for the Company’s first quarter of its 2019 fiscal year; early adoption is permitted as of the beginning of an interim or annual reporting period. The Company is assessing what impacts this new standard will have on its Consolidated Financial Statements and expects assets and liabilities to increase. We will continue evaluating the practical expedients as they are issued. However, the adoption of this standard will result in the recognition of a lease liability and related right-of-use asset and will materially impact our balance sheet.

XML

Income Tax - Notes to the Financial Statements

9 Months Ended

Nov. 03, 2018

IncomeTaxDisclosureAbstract

Income Tax Disclosure [Text Block]

The Company had an effective tax rate for the first nine months of 2018 of 7.9% compared to a tax benefit for the first nine months of 2017. The increasein the effective tax rate for the first nine months is attributable to higher pre-tax earnings and a higher proportion of income being generated from jurisdictions with higher tax rates, partially offset by ongoing savings from tax initiatives. The tax benefit for the three months ended November 3, 2018 was due to favorable discrete items, partially offset by taxes from jurisdictions with lower tax rates. Our estimated annual effective tax rate for the current year includes the impact of the new tax on Global Intangible Low Taxed Income (“GILTI”). We continue evaluating the accounting policy election for deferred taxes under GILTI.

XML

Income Taxes

9 Months Ended

Nov. 03, 2018

IncomeTaxDisclosureAbstract

Income Taxes

The Company had an effective tax rate for the first nine months of 2018 of 7.9% compared to a tax benefit for the first nine months of 2017. The increasein the effective tax rate for the first nine months is attributable to higher pre-tax earnings and a higher proportion of income being generated from jurisdictions with higher tax rates, partially offset by ongoing savings from tax initiatives. The tax benefit for the three months ended November 3, 2018 was due to favorable discrete items, partially offset by taxes from jurisdictions with lower tax rates. Our estimated annual effective tax rate for the current year includes the impact of the new tax on Global Intangible Low Taxed Income (“GILTI”). We continue evaluating the accounting policy election for deferred taxes under GILTI.

XML

Commitments and Contingencies - Notes to the Financial Statements

9 Months Ended

Nov. 03, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

The Company is, from time to time, involved in routine matters including litigation incidental to the conduct of our business. These matters may include merchandise that we sell, intellectual property, personal injuries upon premises under our control, various employment matters, including alleged discrimination, wage and hour matters, including present or former employees. During the quarter, the Company favorably settled certain litigation matters which is reflected in Selling, general and administrative expenses in the Condensed Consolidated Statements of Income and Comprehensive Income. The Company has approximately $7.2 million in accrued expenses at November 3, 2018 for these matters.

Although such matters are routine and incidental to the conduct of our business, as with any business of our size with a significant number of employees and significant merchandise sales, such litigation could result in large monetary awards. Based on information currently available, management does not believe that any reasonably possible losses arising from current pending litigation will have a material adverse effect on our condensed consolidated financial statements. However, given the inherent uncertainties involved in such matters, an adverse outcome in one or more such matters could materially and adversely affect the Company’s financial condition, results of operations and cash flows in any particular reporting period. We accrue for these matters when the liability is deemed probable and reasonably estimable.

XML

Revenue Recognition Footnote

9 Months Ended

Nov. 03, 2018

RevenueRecognitionAndDeferredRevenueAbstract

Rvenue Recognition

NOTE 11 – REVENUE RECOGNITION:

On February 3, 2018, the Company adopted ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“Topic 606”) using the modified retrospective method applied to contracts which were pending as of February 3, 2018. Financial results included in the Company’s Condensed Consolidated Statement of Income for the nine months ended November 3, 2018 are presented under Topic 606, while prior year amounts have not been restated and continue to be reported in accordance with ASC 605, “Revenue Recognition” (“Topic 605”). As a result of adopting Topic 606, the Company did not adjust opening retained earnings.

The Company recognizes sales at the point of purchase when the customer takes possession of the merchandise and pays for the purchase, generally with cash or credit. Sales from purchases made with Cato credit, gift cards and layaway sales from stores are also recorded when the customer takes possession of the merchandise. E-commerce sales are recorded when the risk of loss is transferred to the customer. Gift cards are recorded as deferred revenue until they are redeemed or forfeited. Layaway sales are recorded as deferred revenue until the customer takes possession or forfeits the merchandise. Gift cards do not have expiration dates. A provision is made for estimated merchandise returns based on sales volumes and the Company’s experience; actual returns have not varied materially from historical amounts. A provision is made for estimated write-offs associated with sales made with the Company’s proprietary credit card. Amounts related to shipping and handling billed to customers in a sales transaction are classified as Other revenue and the costs related to shipping product to customers (billed and accrued) are classified as Cost of goods sold.

The Company offers its own proprietary credit card to customers. All credit activity is performed by the Company’s wholly-owned subsidiaries. None of the credit card receivables are secured. The Company estimated uncollectible amounts of $681,000 and $666,000 for the nine months ended November 3, 2018 and October 28, 2017, respectively, on sales purchased on the Company’s proprietary credit card of $20.8 million and $20.1 million for the nine months ended November 3, 2018 and October 28, 2017, respectively.

The following table provides information about receivables and contract liabilities from contracts with customers (in thousands):

	Balance as of
		November 3, 2018		February 3, 2018
Proprietary Credit Card Receivables, net	$	16,380	$	16,857
Gift Card Liability	$	4,798	$	7,565

XML

Earnings Per Share - (Tables)

3 Months Ended

Nov. 03, 2018

Earnings Per Share Disclosure [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

				Three Months Ended				Nine Months Ended
				November 3, 2018		October 28, 2017		November 3, 2018		October 28, 2017
		(Dollars in thousands)
Numerator
	Net earnings/(loss)		$	3,800	$	2,694	$	33,693	$	24,045
	Earnings/(loss) allocated to non-vested equity awards			(107)		(56)		(951)		(531)
	Net earnings/(loss) available to common stockholders		$	3,693	$	2,638	$	32,742	$	23,514
Denominator
	Basic weighted average common shares outstanding			23,820,477		24,537,974		24,051,185		25,150,377
	Diluted weighted average common shares outstanding			23,820,477		24,537,974		24,051,185		25,150,377
Net income/(loss) per common share
	Basic earnings/(loss) per share		$	0.16	$	0.11	$	1.36	$	0.93
	Diluted earnings/(loss) per share		$	0.16	$	0.11	$	1.36	$	0.93

XML

Changes in Accumulated Other Comprehensive Income (Tables)

3 Months Ended

9 Months Ended

Nov. 03, 2018

Oct. 28, 2017

Nov. 03, 2018

Oct. 28, 2017

AccumulatedOtherComprehensiveIncomeLossDisclosure[Abstract]

Schedule Of Accumulated Other Comprehensive Income Loss Table Text Block

NOTE 3 – ACCUMULATED OTHER COMPREHENSIVE INCOME:

The following table sets forth information regarding the reclassification out of Accumulated other comprehensive income (in thousands) for the three months endedNovember 3, 2018:

	Changes in Accumulated Other
	Comprehensive Income (a)
			Unrealized Gains
			and (Losses) on
			Available-for-Sale
			Securities
Beginning Balance at August 4, 2018		$	(399)
Other comprehensive income before
reclassification			(373)
Amounts reclassified from accumulated
other comprehensive income (b)			-
Net current-period other comprehensive income			(373)
Ending Balance at November 3, 2018		$	(772)
(a) All amounts are net-of-tax. Amounts in parentheses indicate a debit/reduction to other comprehensive income.
(b) Includes $0 impact of accumulated other comprehensive income reclassifications into Interest and other income for net gains on available-for-sale securities. The tax impact of this reclassification was $0.

NOTE 3 – ACCUMULATED OTHER COMPREHENSIVE INCOME (CONTINUED):

The following table sets forth information regarding the reclassification out of Accumulated other comprehensive income (in thousands) for the three months endedOctober 28, 2017:

	Changes in Accumulated Other
	Comprehensive Income (a)
			Unrealized Gains
			and (Losses) on
			Available-for-Sale
			Securities
Beginning Balance at July 29, 2017		$	411
Other comprehensive income before
reclassifications			(144)
Amounts reclassified from accumulated
other comprehensive income (b)			(26)
Net current-period other comprehensive income			(170)
Ending Balance at October 28, 2017		$	241
(a) All amounts are net-of-tax. Amounts in parentheses indicate a debit/reduction to other comprehensive income.
(b) Includes ($41) impact of Accumulated other comprehensive income reclassifications into Interest and other income for net gains on available-for-sale securities. The tax impact of this reclassification was ($15).

The following table sets forth information regarding the reclassification out of Accumulated other comprehensive income (in thousands)for the nine months ended November 3, 2018:

	Changes in Accumulated Other
	Comprehensive Income (a)
			Unrealized Gains
			and (Losses) on
			Available-for-Sale
			Securities
Beginning Balance at February 3, 2018		$	(321)
Other comprehensive income before
reclassification			(504)
Amounts reclassified from accumulated
other comprehensive income (b)			53
Net current-period other comprehensive income			(451)
Ending Balance at November 3, 2018		$	(772)
(a) All amounts are net-of-tax. Amounts in parentheses indicate a debit/reduction to other comprehensive income.
(b) Includes $70 impact of accumulated other comprehensive income reclassifications into Interest and other income for net gains on available-for-sale securities. The tax impact of this reclassification was $17.

The following table sets forth information regarding the reclassification out of Accumulated other comprehensive income (in thousands) for the nine months ended October 28, 2017:

	Changes in Accumulated Other
	Comprehensive Income (a)
			Unrealized Gains
			and (Losses) on
			Available-for-Sale
			Securities
Beginning Balance at January 28, 2017		$	(214)
Other comprehensive income before
reclassifications			478
Amounts reclassified from accumulated
other comprehensive income (b)			(23)
Net current-period other comprehensive income			455
Ending Balance at October 28, 2017		$	241
(a) All amounts are net-of-tax. Amounts in parentheses indicate a debit/reduction to other comprehensive income.
(b) Includes ($36) impact of Accumulated other comprehensive income reclassifications into Interest and other income for net gains on available-for-sale securities. The tax impact of this reclassification was ($13).

XML

Reportable Segment Information - (Tables)

9 Months Ended

Nov. 03, 2018

Reportable Segment Information [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Three Months Ended				Nine Months Ended
November 3, 2018	Retail	Credit	Total	November 3, 2018	Retail	Credit	Total
Revenues	$189,055	$957	$190,012	Revenues	$634,360	$2,869	$637,229
Depreciation	4,088	6	4,094	Depreciation	12,452	18	12,470
Interest and other income	(1,374)	-	(1,374)	Interest and other income	(3,559)	-	(3,559)
Income/(Loss) before income taxes	2,140	373	2,513	Income/(Loss) before income taxes	35,159	1,441	36,600
Capital expenditures	1,345	-	1,345	Capital expenditures	3,224	-	3,224
Three Months Ended				Nine Months Ended
October 28, 2017	Retail	Credit	Total	October 28, 2017	Retail	Credit	Total
Revenues	$189,263	$1,010	$190,273	Revenues	$633,816	$3,159	$636,975
Depreciation	5,039	8	5,047	Depreciation	14,958	31	14,989
Interest and other income	(1,200)	-	(1,200)	Interest and other income	(3,472)	-	(3,472)
Income/(Loss) before income taxes	(313)	177	(136)	Income/(Loss) before income taxes	22,872	921	23,793
Capital expenditures	2,337	-	2,337	Capital expenditures	8,762	-	8,762
	Retail	Credit	Total
Total assets as of November 3, 2018	$437,711	$69,182	$506,893
Total assets as of February 3, 2018	469,652	46,424	516,076

	Three Months Ended				Nine Months Ended
		November 3, 2018		October 28, 2017		November 3, 2018		October 28, 2017
Bad debt expense	$	-	$	208	$	-	$	466
Payroll		179		210		571		654
Postage		128		133		379		406
Other expenses		271		274		460		681
Total expenses	$	578	$	825	$	1,410	$	2,207

XML

Sechedule Of Restricted Stock Outstanding - (Tables)

9 Months Ended

Nov. 03, 2018

Disclosure Of Compensation Related Costs Sharebased Payments Abstract

Schedule Of Changes In Restricted Stock Outstanding

	1987	2004	2013	2018
	Plan	Plan	Plan	Plan	Total
Options and/or restricted stock initially authorized	5,850,000	1,350,000	1,500,000	4,725,000	13,425,000
Options and/or restricted stock available for grant:
November 3, 2018	-	-	-	4,503,140	4,503,140

XML

Stock Option Changes - (Tables)

9 Months Ended

Nov. 03, 2018

Disclosure Of Compensation Related Costs Sharebased Payments Abstract

Schedule of Stock Options Outstanding

			Weighted Average
	Number of		Grant Date Fair
	Shares		Value Per Share
Restricted stock awards at February 3, 2018	595,179	$	30.33
Granted	354,385		16.20
Vested	(139,669)		29.87
Forfeited or expired	(27,033)		25.73
Restricted stock awards at November 3, 2018	782,862	$	24.17

XML

Fair Value Measurements - Assets at Fairvalue - (Tables)

9 Months Ended

12 Months Ended

Nov. 03, 2018

Feb. 03, 2018

Fair Value Measurements [Abstract]

Fair Value Disclosures

			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	November 3, 2018		Assets		Inputs		Inputs
Description			Level 1		Level 2		Level 3
Assets:
State/Municipal Bonds	$	59,495	$	-	$	59,495	$	-
Corporate Bonds		90,428		-		90,428		-
U.S. Treasury Notes		5,958		5,958		-		-
Cash Surrender Value of Life Insurance		8,918		-		-		8,918
Asset-backed Securities (ABS)		24,031		-		24,031		-
Corporate Equities		708		708		-		-
Certificates of Deposit		507		507		-		-
Total Assets	$	190,045	$	7,173	$	173,954	$	8,918
Liabilities:
Deferred Compensation		(8,866)		-		-		(8,866)
Total Liabilities	$	(8,866)	$	-	$	-	$	(8,866)

			Quoted
			Prices in
			Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
		February 3, 2018	Assets		Inputs		Inputs
Description			Level 1		Level 2		Level 3
Assets:
State/Municipal Bonds	$	95,983	$	-	$	95,983	$	-
Corporate Bonds		22,535		-		22,535		-
U.S. Treasury Notes		404		404		-		-
Cash Surrender Value of Life Insurance		8,900		-		-		8,900
Asset-backed Securities (ABS)		318		-		318		-
Corporate Equities		798		798		-		-
Certificates of Deposit		100		100		-		-
Total Assets	$	129,038	$	1,302	$	118,836	$	8,900
Liabilities:
Deferred Compensation		(8,951)		-		-		(8,951)
Total Liabilities	$	(8,951)	$	-	$	-	$	(8,951)

XML

Fair Value Measurments - Level 3 Roll (Tables)

9 Months Ended

12 Months Ended

Nov. 03, 2018

Feb. 03, 2018

Fair Value Measurements [Abstract]

Level 3 Reconciliation

	Fair Value
	Measurements Using
	Significant Unobservable
	Asset Inputs (Level 3)
	Cash Surrender Value
Beginning Balance at February 3, 2018	$	8,900
Additions		429
Total gains or (losses)
Included in interest and other income (or changes in net assets)		(411)
Included in other comprehensive income		-
Ending Balance at November 3, 2018	$	8,918
	Fair Value
	Measurements Using
	Significant Unobservable
	Liability Inputs (Level 3)
	Deferred Compensation
Beginning Balance at February 3, 2018	$	(8,951)
Additions		(136)
Total (gains) or losses
Included in interest and other income (or changes in net assets)		221
Included in other comprehensive income		-
Ending Balance at November 3, 2018	$	(8,866)

	Fair Value
	Measurements Using
	Significant Unobservable
	Asset Inputs (Level 3)
	Cash Surrender Value
Beginning Balance at January 28, 2017	$	7,973
Additions		307
Total gains or (losses)
Included in interest and other income (or changes in net assets)		620
Included in other comprehensive income		-
Ending Balance at February 3, 2018	$	8,900
	Fair Value
	Measurements Using
	Significant Unobservable
	Liability Inputs (Level 3)
	Deferred Compensation
Beginning Balance at January 28, 2017	$	(7,649)
Additions		(443)
Total (gains) or losses
Included in interest and other income (or changes in net assets)		(859)
Included in other comprehensive income		-
Ending Balance at February 3, 2018	$	(8,951)

XML

Revenue Recognition (Tables)

9 Months Ended

Nov. 03, 2018

RevenueRecognitionAndDeferredRevenueAbstract

ContractWithCustomerAssetAndLiabilityTableTextBlock

	Balance as of
		November 3, 2018		February 3, 2018
Proprietary Credit Card Receivables, net	$	16,380	$	16,857
Gift Card Liability	$	4,798	$	7,565

XML

General - Notes to Financial Statements - (Details) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 03, 2018	Oct. 28, 2017	Nov. 03, 2018	Oct. 28, 2017
General Dsiclosure [Abstract]
Quarterly Declared Dividend	$ 0.33	$ 0.33	$ 0.99	$ 0.99
Repurchase of common stock			$ 13,344,000	$ 35,708,000
Net income	$ 3,800,000	$ 2,694,000	33,693,000	24,045,000
Dividends paid			$ 24,455,000	$ 25,466,000

XML

Earnings Per Share - (Details) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 03, 2018	Oct. 28, 2017	Nov. 03, 2018	Oct. 28, 2017
Earnings Per Share Disclosure [Abstract]
Net income	$ 3,800,000	$ 2,694,000	$ 33,693,000	$ 24,045,000
Earnings Allocated to Non-Vesting Equity Awards	(107,000)	(56,000)	(951,000)	(531,000)
Net Income (Loss) Available to Common Stockholders	$ 3,693,000	$ 2,638,000	$ 32,742,000	$ 23,514,000
Basic Weighted-Average common shares outstanding	23,820,477	24,537,974	24,051,185	25,150,377
Dilutive Effect of Stock Options	0	0	0	0
Dilluted Weighted Average Common Shares Outstanding	23,820,477	24,537,974	24,051,185	25,150,377
Basic earnings per share	$ 0.16	$ 0.11	$ 1.36	$ 0.93
Diluted earnings per share	$ 0.16	$ 0.11	$ 1.36	$ 0.93

XML

Changes in Accumulated Other Comprehensive Income (Details) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 03, 2018	Oct. 28, 2017	Nov. 03, 2018	Oct. 28, 2017
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance Accumulated other comprehensive income, net of tax			$ (321,000)
Unrealized gain on available-for-sale securities, net of deferred income taxes	$ (373,000)	$ (170,000)	(451,000)	$ 455,000
Ending Balance Accumulated other comprehensive income, net of tax	(772,000)		(772,000)
ChangeInUnrealizedGainsOnAvailableForSaleSecuritiesMember [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance Accumulated other comprehensive income, net of tax	(399,000)	411,000	(321,000)	(214,000)
Other Comprehensive Income Loss Before Reclassifications Net Of Tax	(373,000)	(144,000)	(504,000)	478,000
Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax	0	(26,000)	53,000	(23,000)
Unrealized gain on available-for-sale securities, net of deferred income taxes	(373,000)	(170,000)	(451,000)	455,000
Ending Balance Accumulated other comprehensive income, net of tax	$ (772,000)	$ 241,000	$ (772,000)	$ 241,000

XML

Changes in Accumulated Other Comprehensive Income Components - (Details) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 03, 2018	Oct. 28, 2017	Nov. 03, 2018	Oct. 28, 2017
ReclassificationAdjustmentOutOfAccumulatedOtherComprehensiveIncomeLineItems
Income Tax Benefit (Expense)	$ (1,287,000)	$ (2,830,000)	$ 2,907,000	$ (252,000)
Reclassified Accumulated Unrealized Gains and Losses
ReclassificationAdjustmentOutOfAccumulatedOtherComprehensiveIncomeLineItems
Interest and Other Income	0	(41,000)	70,000	(36,000)
Income Tax Benefit (Expense)	$ 0	$ (15,000)	$ 17,000	$ (13,000)

XML

Financing Arrangements - (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Aug. 04, 2018	Nov. 03, 2018	Feb. 03, 2018
Letter of Credit [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility Outstanding Borrowings	$ 0	$ 0	$ 0
RevolvingCreditFacilityMember [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		35,000
Line of Credit Facility Outstanding Borrowings		$ 0

XML

Reportable Segment Information - (Details) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 03, 2018	Oct. 28, 2017	Nov. 03, 2018	Oct. 28, 2017	Feb. 03, 2018
Segment Reporting Information [Line Items]
Total revenues	$ 190,012,000	$ 190,273,000	$ 637,229,000	$ 636,975,000
Depreciation	4,094,000	5,047,000	12,470,000	14,989,000
Interest and other income	1,374,000	1,200,000	3,559,000	3,472,000
Total Assets	506,893,000		506,893,000		$ 516,076,000
Capital expenditures	1,345,000	2,337,000	3,224,000	8,762,000
Income Before Taxes	2,513,000	(136,000)	36,600,000	23,793,000
ReportableSegmentsMemberRetail [Member]
Segment Reporting Information [Line Items]
Total revenues	189,055,000	189,263,000	634,360,000	633,816,000
Depreciation	4,088,000	5,039,000	12,452,000	14,958,000
Interest and other income	1,374,000	1,200,000	3,559,000	3,472,000
Total Assets	437,711,000		437,711,000		469,652,000
Capital expenditures	1,345,000	2,337,000	3,224,000	8,762,000
Income Before Taxes	2,140,000	(313,000)	35,159,000	22,872,000
ReportableSegmentsMemberCredit [Member]
Segment Reporting Information [Line Items]
Total revenues	957,000	1,010,000	2,869,000	3,159,000
Depreciation	6,000	8,000	18,000	31,000
Interest and other income	0	0	0	0
Total Assets	69,182,000		69,182,000		$ 46,424,000
Capital expenditures	0	0	0	0
Income Before Taxes	$ 373,000	$ 177,000	$ 1,441,000	$ 921,000

XML

Direct Expenses of Credit Segment in SGA - (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 03, 2018	Oct. 28, 2017	Nov. 03, 2018	Oct. 28, 2017
Segment Reporting Information [Line Items]
Bad debt expense	$ 0	$ 208	$ 0	$ 466
ReportableSegmentsMemberCredit [Member]
Segment Reporting Information [Line Items]
Labor and Related Expense	179	210	571	654
Postage Expense	128	133	379	406
Other Expenses	$ 271	$ 274	$ 460	$ 681

XML

Stock Based Compensation - Plans - (Details)	Nov. 03, 2018 shares
1987 Plan
Authorized And Available For Grant [Line Items]
Options And/Or Restrcited Stock Initially Authorized	5,850,000
Options And Or Restricted Stock Available For Grant	0
2004 Plan
Authorized And Available For Grant [Line Items]
Options And/Or Restrcited Stock Initially Authorized	1,350,000
Options And Or Restricted Stock Available For Grant	0
2013 Plan
Authorized And Available For Grant [Line Items]
Options And/Or Restrcited Stock Initially Authorized	1,500,000
Options And Or Restricted Stock Available For Grant	0
2018 Plan
Authorized And Available For Grant [Line Items]
Options And/Or Restrcited Stock Initially Authorized	4,725,000
Options And Or Restricted Stock Available For Grant	4,503,140

XML

Sechedule Of Restricted Stock Outstanding - (Details) - 2004 Plan - Restricted Stock - Class A Common Stock	9 Months Ended
	Nov. 03, 2018 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested [Roll Forward]
Restricted Stock Awards Beginning Balance | shares	595,179
Restricted Stock Awards Granted | shares	354,385
Restricted Stock Awards Vested | shares	(139,669)
Restricted Stock Awards Foreited | shares	(27,033)
Restricted Stock Awards Ending Balance | shares	782,862
Share Based Compensation Arrangement By Share Based Payment Award Equity InstrumentsOtherThan Options Nonvested Weighted Average Grant Date Fair Value
Restricted Stock Awards Weighted Average Grant Date Fair Value Per Share - Beginning Balance | $ / shares	$ 30.33
Granted Restricted Stock Awards Weighted Average Grant Date Fair Value Per Share | $ / shares	16.2
Vested Restricted Stock Awards Weighted Average Grant Date Fair Value Per Share | $ / shares	29.87
Forfeited Restricted Stock Awards Weighted Average Grant Date Fair Value Per Share | $ / shares	25.73
Restricted Stock Awards Weighted Average Grant Date Fair Value Per Share - Ending Balance | $ / shares	$ 24.17

XML

Stock Based Compensation Additional - (Details) - Class A Common Stock - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Nov. 03, 2018	Oct. 28, 2017	Nov. 03, 2018	Oct. 28, 2017	Feb. 03, 2018
Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized Compensation Expense	$ 13,373,000	$ 13,055,000	$ 13,373,000	$ 13,055,000	$ 11,727,000
Remaining Weighted-Average Vesting Period			2 years 4 months 24 days	2 years 2 months 12 days	2 years
Compensation Expense	$ 1,233,000	$ 1,185,000	$ 3,601,000	$ 2,911,000
Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Sold			40,477	31,466
Compensation Expense			$ 91,000	$ 79,000
Employee Stock Purchase Plan Share Purchase Discount	$ 2.26	$ 2.5	$ 2.26	$ 2.5

XML

Fair Value Measurements - Assets at Fairvalue - (Details) - USD ($) $ in Thousands	Nov. 03, 2018	Feb. 03, 2018
Level 1 | Deferred Compensation
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Liabilities, Fair Value Disclosure	$ 0	$ 0
Level 2 | Deferred Compensation
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Liabilities, Fair Value Disclosure	0	0
Level 3 | Deferred Compensation
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Liabilities, Fair Value Disclosure	(8,866)	(8,951)
State/Municipal Bonds | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale Securities	0	0
State/Municipal Bonds | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale Securities	59,495	95,983
State/Municipal Bonds | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale Securities	0	0
Corporate Bonds | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale Securities	0	0
Corporate Bonds | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale Securities	90,428	22,535
Corporate Bonds | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale Securities	0	0
Auction Rate Securities (ARS) | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale Securities	0
Auction Rate Securities (ARS) | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale Securities	0
Auction Rate Securities (ARS) | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale Securities	0
US Treasury Notes | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale Securities	5,958	404
US Treasury Notes | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale Securities	0	0
US Treasury Notes | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale Securities	0	0
Corporate Equities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale Securities	708	798
Corporate Equities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale Securities	0	0
Corporate Equities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale Securities	0	0
Certificates of Deposit | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale Securities	507	100
Certificates of Deposit | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale Securities	0	0
Certificates of Deposit | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale Securities	0	0
Asset Backed Securities (ABS) | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale Securities	0	0
Asset Backed Securities (ABS) | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale Securities	24,031	318
Asset Backed Securities (ABS) | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale Securities	0	0
Cash Surrender Value - Life Insurance | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Surrender Value, Fair Value Disclosure	0	0
Cash Surrender Value - Life Insurance | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Surrender Value, Fair Value Disclosure	0	0
Cash Surrender Value - Life Insurance | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Surrender Value, Fair Value Disclosure	$ 8,918	$ 8,900

XML

Fair Value Measurements - Level 3 Roll - (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Nov. 03, 2018	Feb. 03, 2018
Deferred Compensation
FairValueLiabilitiesMeasuredOnRecurringBasisUnobservableInputReconciliationLineItems
Begining Balance	$ (8,951)	$ (7,649)
Redemptions	(136)	(443)
Additions	221	(859)
Losses (Gains) Included In Earnings	0	0
Ending Balance	(8,866)	(8,951)
Cash Surrender Value - Life Insurance
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	8,900	7,973
Redemptions	0	0
Additions	429	307
Gains (Losses) Included in Earnings	(411)	620
Gains (Losses) Included in Other Comprehensive Income	0	0
Ending Balance	$ 8,918	$ 8,900

XML

Income Tax (Details)	9 Months Ended
	Nov. 03, 2018
IncomeTaxDisclosureAbstract
Effective Income Tax Rate	7.90%

XML

Effective Tax Rate (Details) - USD ($)	3 Months Ended		9 Months Ended
	Nov. 03, 2018	Oct. 28, 2017	Nov. 03, 2018
EffectiveIncomeTaxRateContinuingOperationsTaxRateReconciliationAbstract
Effective Income Tax Rate			7.90%
Income Tax Benefit, foreign domestic tax initiatives	$ 1,000,000	$ (2,800,000)

XML

Commitments and Contingencies (Details)	Nov. 03, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Loss Contingency Estimate Of Possible Loss	$ 7,200,000

XML

Revenue Recognition Disclosure Table - (Details) - USD ($)	Nov. 03, 2018	Feb. 03, 2018
RevenueRecognitionAndDeferredRevenueAbstract
Proprietary Credit Card Receivables Net	$ 16,380,000	$ 16,857,000
Gift Card Liability	$ 4,798,000	$ 7,565,000

XML

Revenue Recognition Cato Credit Card - (Details) - USD ($)	9 Months Ended
	Nov. 03, 2018	Oct. 28, 2017
RevenueRecognitionAndDeferredRevenueAbstract
Proprietary Credit Card Uncollectable amounts	$ 681,000	$ 666,000
Proprietary Credit Card Sales	$ 20,800,000	$ 20,100,000