10-Q

UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM

10-Q

☑

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF

1934

For the quarterly period ended

May 4, 2024

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)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A - Common Stock, par value $.033 per share

CATO

New York Stock Exchange

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 and post 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.

Large accelerated filer

☐

Accelerated filer

☑

 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).

☐

As of May 4, 2024, there were

18,791,732

 shares of Class A common stock and

1,763,652

 shares of Class B common stock outstanding.

1

THE CATO CORPORATION

FORM 10-Q

Quarter Ended May 4, 2024

Table of Contents

Page No.

PART I – FINANCIAL INFORMATION (UNAUDITED)

Item 1.

Financial Statements (Unaudited):

Condensed Consolidated Statements of Income and Comprehensive Income

2

For the Three Months Ended May 4, 2024 and April 29, 2023

Condensed Consolidated Balance Sheets

3

At May 4, 2024 and February 3, 2024 

Condensed Consolidated Statements of Cash Flows

4

For the Three Months Ended May 4, 2024 and April 29, 2023

Condensed Consolidated Statements of Stockholders’ Equity

5

For the Three Months Ended May 4, 2024 and April 29, 2023

Notes to Condensed Consolidated Financial Statements

6 - 19

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results

of Operations

20 - 26

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

27

Item 4.

Controls and Procedures

27

PART II – OTHER INFORMATION

Item 1.

Legal Proceedings

28

Item 1A.

Risk Factors

28

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

28

Item 3.

Defaults Upon Senior Securities

28

Item 4.

Mine Safety Disclosures

29

Item 5.

Other Information

29

Item 6.

Exhibits

29

Signatures

30

2

PART I FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

THE CATO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND

COMPREHENSIVE INCOME

(UNAUDITED)

Three Months Ended

May 4, 2024

April 29, 2023

(Dollars in thousands, except per share data)

REVENUES

 Retail sales

$

175,272

$

190,311

 Other revenue (principally finance charges, late fees and

 layaway charges)

1,827

1,739

 Total revenues

177,099

192,050

COSTS AND EXPENSES, NET

 Cost of goods sold (exclusive of depreciation shown below)

112,505

122,087

 Selling, general and administrative (exclusive of depreciation

 shown below)

56,752

61,934

 Depreciation

2,040

2,357

 Interest and other income

(5,821)

(897)

 Costs and expenses, net

165,476

185,481

Income before income taxes

11,623

6,569

Income tax expense

649

2,141

Net income

$

10,974

$

4,428

Basic earnings per share

$

0.54

$

0.22

Diluted earnings per share

$

0.54

$

0.22

Comprehensive income:

Net income

$

10,974

$

4,428

Unrealized gain (loss) on available-for-sale securities, net 

 of deferred income taxes of $0 and $

107

(748)

355

 for the three months ended May 4, 2024 and April 29, 2023,

 respectively

Comprehensive income

$

10,226

$

4,783

See notes to condensed consolidated financial statements (unaudited).

3

THE CATO CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

May 4, 2024

February 3, 2024

(Dollars in thousands)

ASSETS

Current Assets:

Cash and cash equivalents 

$

39,101

$

23,940

Short-term investments 

66,250

79,012

Restricted cash

3,533

3,973

Accounts receivable, net of allowance for customer credit losses of

 $

671

 and $

705

 at May 4, 2024 and February 3, 2024, respectively

31,716

29,751

Merchandise inventories 

101,317

98,603

Prepaid expenses and other current assets

7,724

7,783

 Total Current Assets 

249,641

243,062

Property and equipment – net 

64,568

64,022

Other assets 

23,305

25,047

Right-of-Use assets – net 

139,635

154,686

 Total Assets 

$

477,149

$

486,817

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

Accounts payable 

$

86,966

$

87,821

Accrued expenses 

38,490

37,404

Accrued bonus and benefits 

2,023

1,675

Accrued income taxes 

518

-

Current lease liability

55,800

61,108

 Total Current Liabilities 

183,797

188,008

Other noncurrent liabilities

14,607

14,475

Lease liability

81,834

92,013

Stockholders' Equity:

Preferred stock, $

100

 par value per share,

100,000

 shares

 authorized,

none

 issued

-

-

Class A common stock, $

0.033

 par value per share,

50,000,000

 shares authorized;

18,791,732

 and

18,802,742

 shares issued

 at May 4, 2024 and February 3, 2024, respectively

635

635

Convertible Class B common stock, $

0.033

 par value per share,

15,000,000

 shares authorized;

1,763,652

 shares issued at May 4, 2024 and February 3, 2024

59

59

Additional paid-in capital 

127,058

126,953

Retained earnings 

69,512

64,279

Accumulated other comprehensive income (loss)

(353)

395

 Total Stockholders' Equity 

196,911

192,321

 Total Liabilities and Stockholders’ Equity 

$

477,149

$

486,817

See notes to condensed consolidated financial statements (unaudited).

4

THE CATO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

Three Months Ended

May 4, 2024

April 29, 2023

(Dollars in thousands)

Operating Activities:

Net income

$

10,974

$

4,428

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

2,040

2,357

Provision for customer credit losses

171

98

Purchase premium and premium amortization of investments

(136)

(18)

Gain on sale of assets held for investment

(4,093)

-

Share-based compensation

(38)

958

Deferred income taxes

-

(832)

Loss (Gain) on disposal of property and equipment

65

(33)

Changes in operating assets and liabilities which provided (used) cash:

 Accounts receivable

(1,836)

(1,793)

 Merchandise inventories

(2,714)

5,243

 Prepaid and other assets

27

(618)

 Operating lease right-of-use assets and liabilities

(435)

(532)

 Accrued income taxes

518

2,066

 Accounts payable, accrued expenses and other liabilities

1,163

(1,429)

Net cash provided by operating activities

5,706

9,895

Investing Activities:

Expenditures for property and equipment 

(3,261)

(6,170)

Purchase of short-term investments

(8,572)

(5,914)

Sales of short-term investments

21,413

27,421

Sales of other assets

5,034

-

Net cash provided by investing activities

14,614

15,337

Financing Activities:

Dividends paid

(3,523)

(3,455)

Repurchase of common stock

(2,237)

(2,267)

Proceeds from employee stock purchase plan

161

166

Net cash used by financing activities

(5,599)

(5,556)

Net increase in cash, cash equivalents, and restricted cash

14,721

19,676

Cash, cash equivalents, and restricted cash at beginning of period

27,913

23,792

Cash, cash equivalents, and restricted cash at end of period 

$

42,634

$

43,468

Non-cash activity:

Accrued other assets and property and equipment expenditures

$

491

$

644

See notes to condensed consolidated financial statements (unaudited).

5

THE CATO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(UNAUDITED)

Accumulated

Additional

Other

Total

Common

Paid-in

Retained

Comprehensive

Stockholders'

Stock

Capital

Earnings

Income (Loss)

Equity

(Dollars in thousands)

Balance — February 3, 2024

$

694

$

126,953

$

64,279

$

395

$

192,321

Comprehensive income:

 Net income

-

-

10,974

-

10,974

 Unrealized net gains on available-for-sale securities, net of deferred 

 income tax benefit of $0

-

-

-

(748)

(748)

Dividends paid ($

0.17

 per share)

-

-

(3,523)

-

(3,523)

Class A common stock sold through employee stock purchase plan

1

189

-

-

190

Share-based compensation issuances and exercises

13

-

5

-

18

Share-based compensation expense

-

(84)

-

-

(84)

Repurchase and retirement of treasury shares

(14)

-

(2,223)

-

(2,237)

Balance — May 4, 2024

$

694

$

127,058

$

69,512

$

(353)

$

196,911

Accumulated

Additional

Other

Total

Common

Paid-in

Retained

Comprehensive

Stockholders'

Stock

Capital

Earnings

Income (Loss)

Equity

(Dollars in thousands)

Balance — January 28, 2023

$

691

$

122,431

$

104,709

$

(1,238)

$

226,593

Comprehensive income:

 Net income

-

-

4,428

-

4,428

 Unrealized net losses on available-for-sale securities, net of deferred 

 income tax expense of $

107

-

-

-

355

355

Dividends paid ($

0.17

 per share)

-

-

(3,455)

-

(3,455)

Class A common stock sold through employee stock purchase plan

-

195

-

-

195

Share-based compensation issuances and exercises

-

-

3

-

3

Share-based compensation expense

-

929

-

-

929

Repurchase and retirement of treasury shares

(8)

-

(2,259)

-

(2,267)

Balance — April 29, 2023

$

683

$

123,555

$

103,426

$

(883)

$

226,781

See notes to condensed consolidated financial statements (unaudited).

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

6

NOTE 1 - GENERAL

:

The condensed consolidated financial statements as of May 4, 2024 and for the thirteen-week periods

ended May 4, 2024 and April 29, 2023 have been prepared from the accounting records of The Cato

Corporation and its wholly-owned subsidiaries (the “Company”), and all amounts shown are unaudited.

In the opinion of management, all adjustments considered necessary for a fair presentation of the financial

statements 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, 2024. Amounts as of February 3, 2024 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 February 16, 2024, the Company closed on the sale of land held for investment. The sale resulted in a

net gain of $

3.2

 million and is included in Interest and other income in the accompanying Condensed

Consolidated Statements of Income and Comprehensive Income for the period ended May 4, 2024.

On May 23, 2024, the Board of Directors maintained the quarterly dividend at $

0.17

 per share.

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

7

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

May 4, 2024

April 29, 2023

(Dollars in thousands)

Numerator

Net earnings

$

10,974

$

4,428

Earnings allocated to non-vested equity awards

(557)

(227)

Net earnings available to common stockholders

$

10,417

$

4,201

Denominator

Basic weighted average common shares outstanding

19,356,789

19,303,048

Diluted weighted average common shares outstanding

19,356,789

19,303,048

Net income per common share

Basic earnings per share

$

0.54

$

0.22

Diluted earnings per share

$

0.54

$

0.22

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

8

NOTE 3 – ACCUMULATED OTHER COMPREHENSIVE INCOME:

The following table sets forth information regarding the reclassification out of Accumulated other

comprehensive income (loss) (in thousands) for the three months ended May 4, 2024:

Changes in Accumulated Other 

Comprehensive Income (Loss) (a)

Unrealized Gains

and (Losses) on

Available-for-Sale

Securities

Beginning Balance at February 3, 2024

$

395

 Other comprehensive income (loss) before 

 reclassification

(1,434)

 Amounts reclassified from accumulated

 other comprehensive income (b)

686

Net current-period other comprehensive income (loss)

(748)

Ending Balance at May 4, 2024

$

(353)

(a) All amounts are net-of-tax. Amounts in parentheses indicate a debit/reduction to accumulated other comprehensive

income.

(b) Includes $

892

 impact of Accumulated other comprehensive income reclassifications into Interest and other 

income for net realized gains on available-for-sale securities. The tax impact of this reclassification was $

206

.

The following table sets forth information regarding the reclassification out of Accumulated other

comprehensive income (loss) (in thousands) for the three months ended April 29, 2023:

Changes in Accumulated Other 

Comprehensive Income (Loss) (a)

Unrealized Gains

and (Losses) on

Available-for-Sale

Securities

Beginning Balance at January 28, 2023

$

(1,238)

 Other comprehensive income (loss) before 

 reclassification

355

Net current-period other comprehensive income (loss)

355

Ending Balance at April 29, 2023

$

(883)

(a) All amounts are net-of-tax.

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

9

NOTE 4 – FINANCING ARRANGEMENTS:

At May 4, 2024, the Company had an unsecured revolving credit agreement, which provides for

borrowings of up to $

35.0

 million less the balance of any revocable letters of credit related to purchase

commitments, and is committed through May 2027. The credit agreement contains various financial

covenants and limitations, including the maintenance of specific financial ratios. On April 25, 2024, the

Company amended the revolving credit agreement to modify a definition used in calculating the

Company’s minimum EBITDAR coverage ratio to add back certain income tax receivables included in

the calculation of the ratio. For the quarter ended May 4, 2024, after giving effect to the amendment, the

Company was in compliance with the credit agreement. There were

no

 borrowings outstanding,

no

r any

outstanding letters of credit that reduced borrowing availability, as of May 4, 2024. The weighted

average interest rate under the credit facility was

zero

 at May 4, 2024 due to

no

 outstanding borrowings.

NOTE 5 – REPORTABLE SEGMENT INFORMATION:

The Company has determined that it has

four

 operating segments, as defined under ASC 280 –

Segment

Reporting

, 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. The products sold in each retail operating segment are similar in nature, as

they all offer women’s apparel, shoes and accessories. Merchandise inventory of 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 retail operating segments is distributed to retail stores

in a similar manner through the Company’s single distribution center and is subsequently distributed to

customers in a similar manner.

The Company operates its women’s fashion specialty retail stores in

31

 states as of May 4, 2024,

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 separate wholly-owned

subsidiaries of the Company.

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

10

NOTE 5 – REPORTABLE SEGMENT INFORMATION (CONTINUED):

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

Three Months Ended

May 4, 2024

Retail

Credit

Total

Revenues

$176,430

$669

$177,099

Depreciation

2,040

-

2,040

Interest and other income

(5,821)

-

(5,821)

Income before taxes

11,374

249

11,623

Capital expenditures

3,261

-

3,261

Three Months Ended

April 29, 2023

Retail

Credit

Total

Revenues

$191,434

$616

$192,050

Depreciation

2,357

-

2,357

Interest and other income

(897)

-

(897)

Income before taxes

6,382

187

6,569

Capital expenditures

6,170

-

6,170

Retail

Credit

Total

Total assets as of May 4, 2024

$438,371

$38,778

$477,149

Total assets as of February 3, 2024

448,488

38,329

486,817

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

May 4, 2024

April 29, 2023

Payroll

$

153

$

134

Postage

102

101

Other expenses

165

194

Total expenses

$

420

$

429

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

11

NOTE 6 – SHARE BASED COMPENSATION:

As of May 4, 2024, the Company had the 2018 Incentive Compensation Plan for the granting of various

forms of equity-based awards, including restricted stock and stock options for grant to officers, directors and

key employees. 

The following table presents the number of options and shares of restricted stock initially authorized and

available for grant under this plan as of May 4, 2024:

2018

Plan

Options and/or restricted stock initially authorized

4,725,000

Options and/or restricted stock available for grant

2,760,305

In accordance with ASC 718 –

Compensation–Stock Compensation

, 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 May 4,

2024 and February 3, 2024, there was $

11,103,000

 and $

9,334,000

, respectively, of total unrecognized

compensation expense related to unvested restricted stock awards, which had a remaining weighted-

average vesting period of

3.0

 years and

2.1

 years, respectively. The total compensation benefit during the

three months ended May 4, 2024 was $

66,000

 compared to an expense of $

932,000

 for the three months

ended April 29, 2023. This compensation activity is classified as a component of Selling, general and

administrative expenses in the Condensed Consolidated Statements of Income.

The following summary shows the changes in the number of shares of unvested restricted stock outstanding

during the three months ended May 4, 2024:

Weighted

Average

Number of

Grant Date Fair

Shares

Value Per Share

Restricted stock awards at February 3, 2024

1,123,873

$

11.32

Granted

389,900

4.76

Vested

(232,696)

13.22

Forfeited or expired

(2,812)

11.81

Restricted stock awards at May 4, 2024

1,278,265

$

8.97

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

12

NOTE 6 – SHARE 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 three months ended May 4, 2024 and April 29, 2023,

the Company sold

33,317

 and

22,194

 shares to employees at an average discount of $

0.86

 and $

1.32

 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 $

29,000

 for each of the

three months ended May 4, 2024 and April 29, 2023. These expenses are classified as a component of

Selling, general and administrative expenses in the Condensed Consolidated Statements of Income.

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 May 4, 2024 and February 3, 2024:

Quoted

Prices in

Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

May 4, 2024

Assets

Inputs

Inputs

Description

Level 1

Level 2

Level 3

Assets:

 State/Municipal Bonds

$

11,477

$

-

$

11,477

$

-

 Corporate Bonds

43,290

-

43,290

-

 U.S. Treasury/Agencies Notes and Bonds

9,873

-

9,873

-

 Cash Surrender Value of Life Insurance

8,749

-

-

8,749

 Asset-backed Securities (ABS)

1,610

-

1,610

-

 Corporate Equities

139

139

-

-

Total Assets

$

75,138

$

139

$

66,250

$

8,749

Liabilities:

 Deferred Compensation

$

(8,662)

$

-

$

-

$

(8,662)

Total Liabilities

$

(8,662)

$

-

$

-

$

(8,662)

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

13

Quoted

Prices in

Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

February 3,

2024

Assets

Inputs

Inputs

Description

Level 1

Level 2

Level 3

Assets:

 State/Municipal Bonds

$

12,540

$

-

$

12,540

$

-

 Corporate Bonds

45,400

-

45,400

-

 U.S. Treasury/Agencies Notes and Bonds

18,114

-

18,114

-

 Cash Surrender Value of Life Insurance

8,586

-

-

8,586

 Asset-backed Securities (ABS)

2,958

-

2,958

-

 Corporate Equities

1,084

1,084

-

-

Total Assets

$

88,682

$

1,084

$

79,012

$

8,586

Liabilities:

 Deferred Compensation

$

(8,654)

$

-

$

-

$

(8,654)

Total Liabilities

$

(8,654)

$

-

$

-

$

(8,654)

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 May 4, 2024

and February 3, 2024. The state, municipal and corporate bonds and asset-backed securities have contractual

maturities which range from

seven days

 to

3.0

 years. The U.S. Treasury/Agencies Notes and Bonds have

contractual maturities which range from

2

 months to

1.8

 years. These securities are classified as available-for-

sale and are recorded as Short-term 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 May 4, 2024, the Company had $

0.1

 million of corporate equities and deferred compensation

plan assets of $

8.7

 million. At February 3, 2024, the Company had $

1.1

 million of corporate equities and

deferred compensation plan assets of $

8.6

 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 and municipal bonds 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 the 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’ net asset values, as

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

14

recorded in Other noncurrent liabilities in the Condensed Consolidated Balance Sheet. These funds are

designed to mirror mutual funds and money market funds that are observable and actively traded.

The following tables summarize the change in fair value of the Company’s financial assets and liabilities

measured using Level 3 inputs as of May 4, 2024 and February 3, 2024 (dollars in thousands):

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

15

Fair Value

Measurements Using

Significant Unobservable

Asset Inputs (Level 3)

Cash Surrender Value

Beginning Balance at February 3, 2024

$

8,586

Redemptions

-

Additions

-

Total gains or (losses)

 Included in interest and other income (or changes in net assets)

163

Ending Balance at May 4, 2024

$

8,749

Fair Value

Measurements Using

Significant Unobservable

Liability Inputs (Level 3)

Deferred Compensation

Beginning Balance at February 3, 2024

$

(8,654)

 Redemptions

253

 Additions

(63)

 Total (gains) or losses

 Included in interest and other income (or changes in net assets)

(198)

Ending Balance at May 4, 2024

$

(8,662)

Fair Value

Measurements Using

Significant Unobservable

Asset Inputs (Level 3)

Cash Surrender Value

Beginning Balance at January 28, 2023

$

9,274

Redemptions

(1,168)

Additions

-

 Total gains or (losses)

 Included in interest and other income (or changes in net assets)

480

Ending Balance at February 3, 2024

$

8,586

Fair Value

Measurements Using

Significant Unobservable

Liability Inputs (Level 3)

Deferred Compensation

Beginning Balance at January 28, 2023

$

(8,903)

 Redemptions

1,119

 Additions

(292)

 Total (gains) or losses

 Included in interest and other income (or changes in net assets)

(578)

Ending Balance at February 3, 2024

$

(8,654)

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

16

NOTE 8 – RECENT ACCOUNTING PRONOUNCEMENTS:

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards

Update (“ASU”) 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment

Disclosures”, which modifies disclosure requirements for all public entities that are required to report

segment information. The update will change the reporting of segments by adding significant segment

expenses, other segment items, title and position of the chief operating decision maker (“COD”) and how

the COD uses the reported measures to make decisions. The update also requires all annual disclosure

about a reportable segment’s profit or loss and assets in interim periods. This guidance is effective for

fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after

December 15, 2024. Early adoption is permitted, and the guidance is applicable retrospectively to all

prior periods presented in the financial statements. The Company is currently in the process of evaluating

the potential impact of adoption of this new guidance on its consolidated financial statements and related

disclosures.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to

Income Tax Disclosures”, which modifies the requirements on income tax disclosures to require

disaggregated information about a reporting entity’s effective tax rate reconciliation as well as

information on income taxes paid. This guidance is effective for fiscal years beginning after December

15, 2024 for all public business entities, with early adoption and retrospective application permitted. The

Company is currently in the process of evaluating the potential impact of adoption of this new guidance

on its consolidated financial statements and related disclosures.

NOTE 9 – INCOME TAXES:

The Company had an effective tax rate for the first quarter of 2024 of

5.6

% compared to an effective tax

rate of

32.6

% for the first quarter of 2023. Income tax expense for the quarter decreased to $

0.6

 million

in 2024 from $

2.1

 million in 2023. The decrease in tax expense is primarily due to valuation allowances

against net deferred tax assets attributable to U.S. federal net operating loss carryforwards and the impact

of the foreign rate differential and lower state income taxes.

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

17

NOTE 10 – COMMITMENTS AND CONTINGENCIES:

The Company is, from time to time, involved in routine litigation incidental to the conduct of its business,

including litigation regarding the merchandise that it sells, litigation regarding intellectual property,

litigation instituted by persons injured upon premises under its control, litigation with respect to various

employment matters, including alleged discrimination and wage and hour litigation, and litigation with

present or former employees. 

Although such litigation is routine and incidental to the conduct of the Company’s business, as with any

business of its 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 its condensed consolidated financial statements. However, given the inherent

uncertainties involved in such matters, an adverse outcome in one or more of such matters could

materially and adversely affect the Company’s financial condition, results of operations and cash flows in

any particular reporting period. The Company accrues for these matters when the liability is deemed

probable and reasonably estimable.

NOTE 11 – REVENUE RECOGNITION:

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. Gift cards do

not have expiration dates. Layaway transactions are recorded as deferred revenue until the customer takes

possession or forfeits the merchandise. 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.

No

ne of the credit card receivables are secured. The Company

estimated customer credit losses of $

171,000

 and $

121,000

 for the periods ended May 4, 2024 and April

29, 2023, respectively, on sales purchased by the Company’s proprietary credit card of $

5.7

 million and

$

5.8

 million for the periods ended May 4, 2024 and April 29, 2023, respectively.

The following table provides information about receivables and contract liabilities from contracts with

customers (in thousands):

Balance as of

May 4, 2024

February 3, 2024

Proprietary Credit Card Receivables, net

$

10,972

$

10,909

Gift Card Liability

$

6,849

$

8,143

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

18

NOTE 12 – LEASES:

The Company determines whether an arrangement is a lease at inception. The Company has operating

leases for stores, offices, warehouse space and equipment. Its leases have remaining lease terms of up to

10 years

, some of which include options to extend the lease term for

up to five years

, and some of which

include options to terminate the lease

within one year

. The Company considers these options in

determining the lease term used to establish its right-of-use assets and lease liabilities. The Company’s

lease agreements do not contain any material residual value guarantees or material restrictive covenants.

As most of the Company’s leases do not provide an implicit rate, the Company uses its estimated

incremental borrowing rate based on the information available at commencement date of the lease in

determining the present value of lease payments.

The components of lease cost are shown below (in thousands):

`

Three Months Ended

May 4, 2024

April 29, 2023

Operating lease cost (a)

$

17,002

$

18,078

Variable lease cost (b)

$

497

$

594

(a) Includes right-of-use asset amortization of ($

0.2

) million and ($

0.3

) million for the three months ended

May 4, 2024 and April 29, 2023, respectively.

(b) Primarily relates to monthly percentage rent for stores not presented on the balance sheet.

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

19

NOTE 12 – LEASES (CONTINUED):

Supplemental cash flow information and non-cash activity related to the Company’s operating leases are

as follows (in thousands):

Operating cash flow information:

Three Months Ended

May 4, 2024

April 29, 2023

Cash paid for amounts included in the measurement of lease liabilities

$

15,607

$

17,345

Non-cash activity:

Right-of-use assets obtained in exchange for lease obligations, net of rent violations

$

444

$

1,904

Weighted-average remaining lease term and discount rate for the Company’s operating leases are as

follows:

As of

May 4, 2024

April 29, 2023

Weighted-average remaining lease term

2.1

 Years

2.2

 Years

Weighted-average discount rate

4.65%

3.20%

As of May 4, 2024, the maturities of lease liabilities by fiscal year for the Company’s operating leases are

as follows (in thousands):

Fiscal Year

2024 (a)

$

49,240

2025

45,261

2026

29,329

2027

16,591

2028

7,784

Thereafter

690

Total lease payments

148,895

Less: Imputed interest

11,261

Present value of lease liabilities

$

137,634

(a) Excluding the 3 months ended May 4, 2024.

20

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 1, 2025 (“fiscal 2024”) and beyond, including, but not limited to,

statements regarding expected amounts of capital expenditures and store openings, relocations, remodels

and closures, and statements regarding the potential impact of supply chain disruptions, extreme weather

conditions, inflationary pressures and other economic or market conditions on our business, results of

operations and financial condition and statements of plans or intentions regarding new store development

or store 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, or continuation of negative trends in, the conditions that drive consumer

confidence and spending, including, but not limited to, prevailing social, economic, political and public

health conditions and uncertainties, levels of unemployment, fuel, energy and food costs, wage rates, tax

rates, interest rates, home values, consumer net worth, the availability of credit and inflation; changes in

laws, regulations or government policies affecting our business, including but not limited to tariffs;

uncertainties regarding the impact of any governmental action regarding, or responses to, the foregoing

conditions; competitive factors and pricing pressures; our ability to predict and respond to rapidly

changing fashion trends and consumer demands; our ability to successfully implement our new store

development strategy to increase new store openings and our ability of any such new stores to grow and

perform as expected; underperformance or other factors that may lead to, or affect the volume of, store

closures; adverse weather, public health threats (including the global COVID-19 pandemic), acts of war

or aggression or similar conditions that may affect our merchandise supply chain, sales or operations;

inventory risks due to shifts in market demand, including the ability to liquidate excess inventory at

anticipated margins; adverse developments or volatility affecting the financial services industry or

broader financial markets; 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, 2024 (“fiscal 2023”), 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.

THE CATO CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

21

CRITICAL ACCOUNTING POLICIES AND ESTIMATES:

The Company’s critical accounting policies and estimates 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, 2024. 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 calculation of potential asset impairment, income tax valuation allowances, reserves

relating to self-insured health insurance, workers’ compensation, general and auto insurance liabilities,

uncertain tax positions, the allowance for customer credit losses, and inventory shrinkage.

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

THE CATO CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

22

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

May 4, 2024

April 29, 2023

Total retail sales

100.0

%

100.0

%

Other revenue

1.0

0.9

Total revenues

101.0

100.9

Cost of goods sold (exclusive of depreciation)

64.2

64.2

Selling, general and administrative (exclusive of depreciation)

32.4

32.5

Depreciation

1.2

1.2

Interest and other income

(3.3)

(0.5)

Income before income taxes

6.6

3.5

Net income

6.3

2.3

THE CATO CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

23

RESULTS OF OPERATIONS (CONTINUED):

Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is

intended to provide information to assist readers in better understanding and evaluating our financial

condition and results of operations. We recommend reading this MD&A in conjunction with our

Condensed Consolidated Financial Statements and the Notes to those statements included in the

“Financial Statements” section of this Quarterly Report on Form 10-Q, as well as our 2023

Annual Report

on Form 10-K.

Recent Developments

Inflationary Cost Pressure and High Interest Rates

The pressure on our customers’ disposable income continued in the first quarter of fiscal 2024, due to

prolonged and persistently high inflation rates, especially related to housing and fuel, as well as high interest

rates. These high interest rates have adversely affected the availability and cost of credit for our customers,

including revolving credit and auto loans, and continue to negatively impact our customers’ disposable

income. Our customers’ willingness to purchase our products may continue to be negatively impacted by

these inflationary pressures and high interest rates.

We believe continued inflation and high interest rates negatively impacted the first quarter of 2024 and will

likely continue to have a negative impact on consumer behavior and, by extension, our results of operations

and financial condition during the remainder of fiscal 2024.

Merchandise Supply Chain

A significant amount of our merchandise is manufactured overseas, principally Southeast Asia, and traverses

through the Panama Canal or the Suez Canal. The regional drought conditions experienced in the region

surrounding the Panama Canal reduced the number of transits by approximately 37% and has also reduced

the permissible draft of vessels transiting the Panama Canal, which reduced the volume and number of

containers carried by container ships and increased our costs in the first quarter. During the second quarter,

the Panama Canal authority plans to increase the daily transits by 33% and increase the permissible draft of

vessels depending on weather conditions. The hostilities affecting the region surrounding the Suez Canal are

causing container ships to travel longer distances around the Cape of Good Hope, which is increasing lead

times for merchandise and our costs to ship these goods as well as decreasing the pool of containers available. 

Both of these situations have negatively impacted 2024. Though conditions in the Panama Canal could

incrementally improve if weather conditions allow the easing of existing restrictions, we believe the totality

of these conditions will likely continue to have a negative impact on our results of operations and financial

condition for the foreseeable future.

Comparison of First Quarter of 2024 with 2023

Total retail sales for the first quarter were $175.3 million compared to last year’s first quarter sales of $190.3

million. Sales decreased primarily due to a decrease in same-store sales and sales from stores that were

closed in the past 12 months, partially offset by sales from stores opened in the past 12 months. The decrease

in same-store sales is primarily from fewer transactions due to the aforementioned pressures on our

customers’ disposable income, as well as lower average sales per transaction. 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

THE CATO CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

24

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 5.0%

of sales for the first quarter of fiscal 2024 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, shipping charged to customers for e-commerce purchases and layaway fees), were

$177.1 million for the first quarter ended May 4, 2024, compared to $192.1 million for the first quarter ended

April 29, 2023. The Company operated 1,171 stores at May 4, 2024 compared to 1,264 stores at the end of

last fiscal year’s first quarter. For the first three months of fiscal 2024, the Company permanently closed

seven stores. The Company currently anticipates closing approximately 75 stores in fiscal 2024.

Credit revenue of $0.7 million represented 0.4% of total revenues in the first quarter of fiscal 2024, compared

to 2023 credit revenue of $0.6 million or 0.3% of total revenues. Credit revenue is comprised of interest

earned on the Company’s private label credit card portfolio and related fee income. Related expenses include

principally payroll, postage and other administrative expenses, and totaled $0.4 million in the first quarter of

2024, compared to last year’s first quarter expenses of $0.4 million. 

Other revenue, a component of total revenues, was $1.8 million for the first quarter of fiscal 2024, compared

to $1.7 million for the prior year’s comparable first quarter. The slight increase was due to higher gift card

breakage income and late charges, partially offset by lower e-commerce shipping revenue and layaway fees.

Cost of goods sold was $112.5 million, or 64.2% of retail sales for the first quarter of fiscal 2024, compared

to $122.1 million, or 64.2% of retail sales in the first quarter of fiscal 2023. 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) decreased by 8.0% to $62.8 million for the first

quarter of fiscal 2024 compared to $68.2 million in the first quarter of fiscal 2023. Gross margin as presented

may not be comparable to those of other entities.

Selling, general and administrative expenses (“SG&A”) primarily include corporate and store payroll, related

payroll taxes and benefits, insurance, supplies, advertising, and bank and credit card processing fees. SG&A

expenses were 32.4% of retail sales for the first quarter of fiscal 2024, compared to 32.5% of retail sales in

the first quarter of fiscal 2023. SG&A expense is lower in the first quarter of fiscal 2024 compared to the first

quarter of fiscal 2023 primarily due to lower equity compensation, advertising and store expenses, including

payroll, partially offset by an increase in insurance expense.

Depreciation expense was $2.0 million, or 1.2% of retail sales for the first quarter of fiscal 2024, compared to

$2.4 million, or 1.2% of retail sales for the first quarter of fiscal 2023. The decrease in depreciation expense

was attributable to older stores being fully depreciated.

Interest and other income was $5.8 million, or 3.3% of retail sales for the first quarter of fiscal 2024,

compared to $0.9 million, or 0.5% of retail sales for the first quarter of fiscal 2023. The increase was

primarily due to a $3.2 million net gain on sale of land held for investment.

Income tax expense was 0.6 million or 0.4% of retail sales for the first quarter of fiscal 2024, compared to

income tax expense of 2.1 million, or 1.1% of retail sales for the first quarter of fiscal 2023. The effective

THE CATO CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

25

income tax rate for the first quarter of fiscal 2024 was 5.6% compared to 32.6% for the first quarter of

2023. The decrease in tax expense is primarily due to the valuation allowance against net deferred tax

assets attributable to U.S. federal net operating loss carryforwards and the impact of the foreign rate

differential and lower state income taxes.

LIQUIDITY, CAPITAL RESOURCES AND MARKET RISK: 

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 and expected capital expenditures for the next 12 months.

Cash provided by operating activities for the first three months of fiscal 2024 was primarily generated by

earnings adjusted for depreciation and changes in working capital. The decrease in cash provided of $4.2

million for the first three months of fiscal 2024 as compared to the first three months of fiscal 2023 was

primarily attributable to the relative change in inventory from year-end to the first quarter for both years and a

decrease to first quarter 2024 net income for non-operating gain on sale of assets held for investment.

At May 4, 2024, the Company had working capital of $65.8 million compared to $55.1 million at February 3,

2024. The increase is primarily attributable to an increase in cash and cash equivalents, inventory, accounts

receivable and lower current lease liability, partially offset by lower short-term investments.

At May 4, 2024, the Company had an unsecured revolving credit agreement, which provides for

borrowings of up to $35.0 million less the balance of any revocable letters of credit related to purchase

commitments, and is committed through May 2027. The credit agreement contains various financial

covenants and limitations, including the maintenance of specific financial ratios. On April 25, 2024, the

Company amended the revolving credit agreement to modify a definition used in calculating the

Company’s minimum EBITDAR coverage ratio to add back certain income tax receivables included in

the calculation of the ratio. For the quarter ended May 4, 2024, after giving effect to the amendment, the

Company was in compliance with the credit agreement. There were no borrowings outstanding, nor any

outstanding letters of credit that reduced borrowing availability, as of May 4, 2024. The weighted

average interest rate under the credit facility was zero at May 4, 2024 due to no outstanding borrowings.

Expenditures for property and equipment totaled $3.3 million in the first three months of fiscal 2024,

compared to $6.2 million in last year’s first three months. The decrease in expenditures for property and

equipment was primarily due to lower capital investments in information technology and the distribution

center, as well as no new store openings in the first quarter of fiscal 2024. For the full fiscal 2024 year, the

Company expects to invest approximately $9.0 million in capital expenditures, including distribution center

automation projects.

Net cash provided by investing activities totaled $14.6 million in the first three months of fiscal 2024

compared to $15.3 million provided in the comparable period of fiscal 2023. The decrease is primarily due to

an increase in purchases of short-term investments and a decrease in sales of short-term investments, partially

offset by the sale of other assets and a decrease in capital expenditures.

Net cash used in financing activities totaled $5.6 million in the first three months of fiscal 2024 and fiscal

2023.

On May 23, 2024, the Board of Directors maintained the quarterly dividend at 0.17 per share.

THE CATO CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

26

As of May 4, 2024, the Company had 478,238 shares remaining in open authorizations under its share

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 May 4, 2024

and February 3, 2024. The state, municipal and corporate bonds and asset-backed securities have contractual

maturities which range from seven days to 3.0 years. The U.S. Treasury/Agencies Notes and Bonds have

contractual maturities which range from 2 months to 1.8 years. These securities are classified as available-for-

sale and are recorded as Short-term 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 May 4, 2024, the Company had $0.1 million of corporate equities and deferred compensation

plan assets of $8.7 million. At February 3, 2024, the Company had $1.1 million of corporate equities and

deferred compensation plan assets of $8.6 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.

THE CATO CORPORATION

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

27

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK:

The Company is subject to market rate risk from exposure to changes in interest rates related to 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 May 4, 2024. Based on this

evaluation, our Principal Executive Officer and Principal Financial Officer concluded that, as of May 4, 2024,

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 May 4, 2024 that has materially affected, or is

reasonably likely to materially affect, the Company’s internal control over financial reporting.

THE CATO CORPORATION

PART II OTHER INFORMATION

28

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, 2024. 

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 May 4, 2024:

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

of Shares

Price Paid

Announced Plans or

Yet be Purchased Under

Period

Purchased

per Share (1)

Programs (2)

The Plans or Programs (2)

February 2024

-

$

-

-

March 2024

134,209

5.41

134,209

April 2024

297,206

5.05

297,206

Total

431,415

$

5.16

431,415

478,238

(1)

Prices include trading costs.

(2)

As of February 3, 2024, the Company’s share repurchase program had 909,653 shares remaining

in open authorizations. During the first quarter ended May 4, 2024, the Company repurchased

and retired 431,415 shares under this program for approximately $2,227,608 or an average market

price of $5.16 per share. As of May 4, 2024, the Company had 478,238 shares remaining in open

authorizations. There is no specified expiration date for the Company’s repurchase program.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES:

Not Applicable 

THE CATO CORPORATION

PART II OTHER INFORMATION

29

ITEM 4. MINE SAFETY DISCLOSURES:

No matters requiring disclosure.

ITEM 5. OTHER INFORMATION:

During the three months ended May 4, 2024, none of the Company’s directors or officers (as defined in

Rule 16a-1(f) of the Securities Exchange Act of 1934, as amended)

adopted

 or

terminated

 a “Rule10b5-1

trading arrangement” or a “

non-Rule

10b5-1

 trading arrangement” (as such terms are defined in Item 408

of Regulation S-K).

ITEM 6. EXHIBITS: 

Exhibit No.

Item

 3.1

Registrant’s Amended and Restated Certificate of Incorporation,

incorporated by reference to Exhibit 3.1 to Form 10-Q of the Registrant

for the quarter ended May 2, 2020.

 3.2

Registrant’s Amended and Restated By-Laws, incorporated by

reference to Exhibit 3.2 to Form 10-Q of the Registrant for the quarter

ended May 2, 2020.

10.1*

Fourth Amendment, dated as of April 25, 2024, to Credit

Agreement, dated as of May 19 2022, among the Registrant, the

banks party thereto and Wells Fargo Bank, National Association.

 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.INS

Inline XBRL Instance Document

101.SCH

Inline XBRL Taxonomy Extension Schema Document

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF

Inline XBRL Taxonomy Extension Definitions Linkbase Document

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document

104.1

Cover Page Interactive Data File (Formatted in Inline XBRL and

contained in the Interactive Data Files submitted as Exhibit 101.1*)

 * Submitted electronically herewith. 

THE CATO CORPORATION

PART II OTHER INFORMATION

30

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

May 30, 2024

/s/ John P. D. Cato

Date

John P. D. Cato

Chairman, President and

Chief Executive Officer

May 30, 2024

/s/ Charles D. Knight

Date

Charles D. Knight 

Executive Vice President

Chief Financial Officer

EX-10.1

1

Execution VersionFOURTH AMENDMENT TO CREDIT AGREEMENTTHIS FOURTH AMENDMENT TO CREDIT AGREEMENT (this "Amendment "), dated

 as of April 25, 2024, is by and among THE CATO CORPORATION, a Delaware corporation

(the "Borrower''), the Banks (as defined below) party hereto and WELLS FARGO BANK,

NATIONAL ASSOCIATION, as agent on behalf of the Banks under the Credit Agreement (as

hereinafter defined) (in such capacity, the "Agent"). Capitalized terms used herein and not otherwise

defined herein shall have the meanings ascribed thereto in the Credit Agreement.

W I T N E S S E T H

WHEREAS

, the Borrower, certain Domestic Subsidiaries of the Borrower as may be from

time to time party thereto, certain banks and financial institutions from time to time party thereto (the

"Banks")

and the Agent are parties to that certain Credit Agreement dated as of May 19, 2022 (as

amended by that certain First Amendment to Credit Agreement, dated as of June 6, 2022, that certain

Second Amendment

to Credit Agreement, dated as of August 9, 2023, that certain Third

Amendment to Credit Agreement, dated as of October 24, 2023, and as further amended,

modified, extended, restated, replaced, or

supplemented from time to time, the "Credit Agreement");

WHEREAS

, the Borrower has requested that the Required Banks and Agent amend

certain

provisions of the Credit Agreement; and

WHEREAS

, the Required Banks and the Agent are willing to make such amendments to

the

Credit Agreement, in accordance with and subject to the terms and conditions set forth herein.

NOW, THEREFORE

, in consideration of the agreements hereinafter set forth, and for

other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged,

the parties

hereto agree as follows:

ARTICLE IAMENDMENTS TO CREDIT AGREEMENT1.1 Amendment to Definition of Minimum EBITDAR Coverage Ratio. The definition of Minimum EBITDAR Coverage Ratio set forth in Section 1.01 of the Credit Agreement is herebyamended and restated in its entirety to read as follows:

"Minimum EBITDAR Coverage Ratio" means, as of the end of any Fiscal Quarter,

the ratio of (i) EBITDAR for the four-Fiscal Quarter period then ended, minus (a) Taxe s

paid in

Cash for such four-Fiscal Quarter period, plus (b) following the date the financial

statements are delivered pursuant to Section 5.01 for the Fiscal Quarter ended July 29,2023

and without duplication of any amounts set forth in clause (b)(ii) of the definition of

EBITDAR, the amount

of income tax returns anticipated by the Borrower in good faith to be

received from the Internal Revenue Service after August 1, 2023 in connection with taxes

paid during the 2021 Fiscal Year

(the "Income Tax Receivables"); provided, that (A) the

amount added back pursuant to this

clause (b) shall not exceed the lesser of (x) $5,325,000

and (y) the actual amount of Income Tax

Receivables received from the Internal Revenue

Service and (B) the addback set forth in this clause (b) shall no longer be available from and

after the earlier of (I) receipt by the Borrower

of any Income Tax Receivable

s

from the

2

Internal Revenue Service and (II) any reporting period following the end of the second Fiscal

Quarter of 2024, to (ii) the Fixed Charges for such four Fiscal Quarte

r

period.

2

ARTICLE II CONDITIONS TO EFFECTIVENESSThis Amendment shall become effective as of the day and year set forth above (the ''Fourth Amendment Effective Date") when the Agent shall have received a copy of this Amendment duly executed by each of the Borrower, the Required Banks and the Agent.ARTICLE III

MISCELLANEOUS

3.1Amended Terms. On and after the Fourth Amendment Effective Date, all references to the Credit Agreement in each of the Loan Documents shall hereafter mean the Credit Agreement as amended by this Amendment. Except as specifically amended hereby or otherwise agreed, the Credit Agreement is hereby, ratified and confirmed and shall remain in full force and effect according to

its terms.

3.2Reaffirmation of Obligations. The Borrower hereby ratifies the Credit Agreement as amended by this Amendment and acknowledges and reaffirms (a) that it is bound by all terms of the Credit Agreement as so amended applicable to it and (b) that it is responsible for the observance and full performance of its Obligations.3.3Loan Document. This Amendment shall constitute a Loan Document under the terms of the Credit Agreement.3.4Further Assurances. The Borrower agrees to promptly take such action, upon the request of the Agent, as is necessary to carry out the intent of this Amendment.3.5Entirety. This Amendment and the other Loan Documents embody the entire agreement among the parties hereto relating to the subject matter hereof and thereof and supersede all previous documents, agreements and understandings, oral or written, relating to the subject matter hereof and thereof.3.6Counterparts; Telecopy. This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which when so executed and delivered will constitute an original, but all of which when taken together will constitute a single contract. Delivery of an executed counterpart to this Amendment by telecopy or other electronic means shall be effective as an original and shall constitute a representation that an original will be delivered.3.7No Actions, Claims. Etc. As of the date hereof, the Borrower herebyacknowledges and confirms that it has no knowledge of any actions, causes of action, claims, demands,damages and liabilities of whatever kind or nature, in law or in equity, against the Agent, the Banks, orthe Agent's or the Banks' respective officers, employees, representatives, agents, counsel or directorsarising from any action by such Persons, or failure of such Persons to act under the Credit Agreementon or prior to the date hereof.3.8NORTH CAROLINA LAW . THIS AMENDMENT SHALL BE

3

CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NORTH CAROLINA.

4

3.9Successors and Assigns. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.3.10Expenses. Notwithstanding the provisions of Section 9.03 of the Credit Agreement, each party hereto agrees that it shall be responsible for its own expenses in connection with this Amendment; provided however the Borrower shall pay fees and disbursements of outside counsel for the Agent in connection with the preparation of this Amendment in the amount of $3,000.3.11Consent to Jurisdiction: Service of Process; Waiver of .Jury Trial. The jurisdiction, service of process and waiver of jury trial provis1ons set forth in Section 9.16 of the Credit Agreement

are hereby incorporated by reference,

mutatis mutandis.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

5

IN WITNESS WHEREOF the parties hereto have caused this Amendment to be duly executed

on

the date first above written.

BORROWER:

6

THE

7

'CATO

8

CORPORATION

By:

Executive Vice President and Chief Financial Officer

'

9

AGENT AND BANKS:

10

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Agent, Issuing Bank and as a Bank

By:

Name: Brad D. Bostick: Title: Senior Vice President

EX-31.1

Exhibit311

EX-31.2

1

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, Charles D. Knight, 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: May 30, 2024

/s/ Charles D. Knight

Charles D. Knight

Executive Vice President

Chief Financial Officer

EX-32.1

1

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 May 4, 2024 (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: May 30, 2024

/s/ John P. D. Cato

John P. D. Cato

Chairman, President and

Chief Executive Officer

EX-32.2

1

EXHIBIT 32.2

CERTIFICATION OF PERIODIC REPORT

I, Charles D. Knight, 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 May 4, 2024 (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: May 30, 2024

/s/ Charles D. Knight

Charles D. Knight

Executive Vice President

Chief Financial Officer

XML

Document and Entity Information	3 Months Ended
	May 04, 2024 shares
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	May 04, 2024
Document Transition Report	false
Entity File Number	1-31340
Entity Registrant Name	THE CATO CORPORATION
Entity Incorporation State Country Code	DE
Entity Tax Identification Number	56-0484485
Entity Address Address Line 1	8100 Denmark Road
Entity Address City Or Town	Charlotte
Entity Address State Or Province	NC
Entity Address Postal Zip Code	28273-5975
City Area Code	704
Local Phone Number	554-8510
Security 12b Title	Class A - Common Stock, par value $.033 per share
Trading Symbol	CATO
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--02-01
Entity Filer Category	Accelerated Filer
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000018255
Amendment Flag	false
Class A Common Stock [Member]
Class of Stock [Line Items]
Entity Common Stock Shares Outstanding	18,791,732
Convertible Class B Common Stock [Member]
Class of Stock [Line Items]
Entity Common Stock Shares Outstanding	1,763,652

XML

Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	May 04, 2024	Apr. 29, 2023
Revenues
Retail sales	$ 175,272	$ 190,311
Other revenue (principally finance charges, late fees and layaway charges)	1,827	1,739
Total revenues	177,099	192,050
COSTS AND EXPENSES, NET
Cost of goods sold (exclusive of depreciation shown below)	112,505	122,087
Selling, general and administrative (exclusive of depreciation shown below)	56,752	61,934
Depreciation	2,040	2,357
Interest and other income	(5,821)	(897)
Costs and expenses, net	165,476	185,481
Income before income taxes	11,623	6,569
Income tax expense	649	2,141
Net income	$ 10,974	$ 4,428
Basic earnings per share	$ 0.54	$ 0.22
Diluted earnings per share	$ 0.54	$ 0.22
Comprehensive income:
Net income	$ 10,974	$ 4,428
Unrealized gain (loss) on available-for-sale securities, net of deferred income taxes of $0 and $107 for the three months ended May 4, 2024 and April 29, 2023, respectively	(748)	355
Comprehensive income	$ 10,226	$ 4,783

XML

Condensed Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	May 04, 2024	Apr. 29, 2023
Condensed Consolidated Statements of Income and Comprehensive Income [Abstract]
Unrealized gain (loss) on available-for-sale securities, deferred income tax	$ 0	$ 107

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	May 04, 2024	Feb. 03, 2024
Current Assets:
Cash and cash equivalents	$ 39,101	$ 23,940
Short-term investments	66,250	79,012
Restricted cash	3,533	3,973
Accounts receivable, net of allowance for customer credit losses of $671 and $705 at May 4, 2024 and February 3, 2024, respectively	31,716	29,751
Merchandise inventories	101,317	98,603
Prepaid expenses and other current assets	7,724	7,783
Total Current Assets	249,641	243,062
Property and equipment - net	64,568	64,022
Other assets	23,305	25,047
Right-of-Use assets - net	139,635	154,686
Total Assets	477,149	486,817
Current Liabilities:
Accounts payable	86,966	87,821
Accrued expenses	38,490	37,404
Accrued bonus and benefits	2,023	1,675
Accrued income taxes	518	0
Current lease liability	55,800	61,108
Total Current Liabilities	183,797	188,008
Other noncurrent liabilities	14,607	14,475
Lease liability	81,834	92,013
Stockholders' Equity:
Preferred stock, $100 par value per share, 100,000 shares authorized, none issued	0	0
Common stock	694	694
Additional paid-in capital	127,058	126,953
Retained earnings	69,512	64,279
Accumulated other comprehensive income (loss)	(353)	395
Total Stockholders' Equity	196,911	192,321
Total Liabilities and Stockholders' Equity	477,149	486,817
Class A Common Stock [Member]
Stockholders' Equity:
Common stock	635	635
Convertible Class B Common Stock [Member]
Stockholders' Equity:
Common stock	$ 59	$ 59

XML

Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	May 04, 2024	Feb. 03, 2024
Consolidated Balance Sheet Parenthetical [Abstract]
Allowance for Doubtful Accounts Receivable, Current	$ 671	$ 705
Preferred Stock Par or Stated Value per Share	$ 100	$ 100
Preferred Stock Shares Authorized	100,000	100,000
Preferred Stock, Shares Issued	0	0
Class A Common Stock [Member]
Consolidated Balance Sheet Parenthetical [Abstract]
Common Stock, Shares Authorized	50,000,000	50,000,000
Common Stock, Shares Issued	18,791,732	18,802,742
Common Stock, Par or Stated Value Per Share	$ 0.033	$ 0.033
Convertible Class B Common Stock [Member]
Consolidated Balance Sheet Parenthetical [Abstract]
Common Stock, Shares Authorized	15,000,000	15,000,000
Common Stock, Shares Issued	1,763,652	1,763,652
Common Stock, Par or Stated Value Per Share	$ 0.033	$ 0.033

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	May 04, 2024	Apr. 29, 2023
Operating Activities:
Net income	$ 10,974	$ 4,428
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	2,040	2,357
Provision for customer credit losses	171	98
Purchase premium and premium amortization of investments	(136)	(18)
Gain on sale of assets held for investment	(4,093)	0
Share-based compensation	(38)	958
Deferred income taxes	0	(832)
Loss (Gain) on disposal of property and equipment	65	(33)
Changes in operating assets and liabilities which provided (used) cash:
Accounts receivable	(1,836)	(1,793)
Merchandise inventories	(2,714)	5,243
Prepaid and other assets	27	(618)
Operating lease right-of-use assets and liabilities	(435)	(532)
Accrued income taxes	518	2,066
Accounts payable, accrued expenses and other liabilities	1,163	(1,429)
Net cash provided by operating activities	5,706	9,895
Investing Activities:
Expenditures for property and equipment	(3,261)	(6,170)
Purchase of short-term investments	(8,572)	(5,914)
Sales of short-term investments	21,413	27,421
Sales of other assets	5,034	0
Net cash provided by investing activities	14,614	15,337
Financing Activities:
Dividends paid	(3,523)	(3,455)
Repurchase of common stock	(2,237)	(2,267)
Proceeds from employee stock purchase plan	161	166
Net cash used by financing activities	(5,599)	(5,556)
Net increase in cash, cash equivalents, and restricted cash	14,721	19,676
Cash, cash equivalents, and restricted cash at beginning of period	27,913	23,792
Cash, cash equivalents, and restricted cash at end of period	42,634	43,468
Non-cash activity:
Accrued other assets and property and equipment expenditures	$ 491	$ 644

XML

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Balance at Jan. 28, 2023	$ 226,593	$ 691	$ 122,431	$ 104,709	$ (1,238)
Net income	4,428	0	0	4,428	0
Unrealized net gains (losses) on available-for-sale securities, net of deferred income tax expense (benefit)	355	0	0	0	355
Dividends paid	(3,455)	0	0	(3,455)	0
Class A common stock sold through employee stock purchase plan	195	0	195	0	0
Share-based compensation issuances and exercises	3	0	0	3	0
Share-based compensation expense	929	0	929	0	0
Repurchase and retirement of treasury shares	(2,267)	(8)	0	(2,259)	0
Balance at Apr. 29, 2023	226,781	683	123,555	103,426	(883)
Balance at Feb. 03, 2024	192,321	694	126,953	64,279	395
Net income	10,974	0	0	10,974	0
Unrealized net gains (losses) on available-for-sale securities, net of deferred income tax expense (benefit)	(748)	0	0	0	(748)
Dividends paid	(3,523)	0	0	(3,523)	0
Class A common stock sold through employee stock purchase plan	190	1	189	0	0
Share-based compensation issuances and exercises	18	13	0	5	0
Share-based compensation expense	(84)	0	(84)	0	0
Repurchase and retirement of treasury shares	(2,237)	(14)	0	(2,223)	0
Balance at May. 04, 2024	$ 196,911	$ 694	$ 127,058	$ 69,512	$ (353)

XML

Condensed Consolidated Statements of Stockholders' Equity (Parentheticals) - USD ($) $ in Thousands	3 Months Ended
	May 04, 2024	Apr. 29, 2023
Condensed Consolidated Statements of Stockholders' Equity [Abstract]
Unrealized gain (loss) on available-for-sale securities, deferred income tax	$ 0	$ 107
Stock Transactions, Parenthetical Disclosures [Abstract]
Dividends per share	$ 0.17	$ 0.17

XML

General

3 Months Ended

May 04, 2024

General [Abstract]

General

NOTE 1 - GENERAL

:

The condensed consolidated financial statements as of May 4, 2024 and for the thirteen-week periods

ended May 4, 2024 and April 29, 2023 have been prepared from the accounting records of The Cato

Corporation and its wholly-owned subsidiaries (the “Company”), and all amounts shown are unaudited.

In the opinion of management, all adjustments considered necessary for a fair presentation of the financial

statements 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, 2024. Amounts as of February 3, 2024 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 February 16, 2024, the Company closed on the sale of land held for investment. The sale resulted in a

net gain of $

3.2

 million and is included in Interest and other income in the accompanying Condensed

Consolidated Statements of Income and Comprehensive Income for the period ended May 4, 2024.

On May 23, 2024, the Board of Directors maintained the quarterly dividend at $

0.17

 per share.

XML

Earnings Per Share

3 Months Ended

May 04, 2024

Earnings Per Share [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

May 4, 2024

April 29, 2023

(Dollars in thousands)

Numerator

Net earnings

$

10,974

$

4,428

Earnings allocated to non-vested equity awards

(557)

(227)

Net earnings available to common stockholders

$

10,417

$

4,201

Denominator

Basic weighted average common shares outstanding

19,356,789

19,303,048

Diluted weighted average common shares outstanding

19,356,789

19,303,048

Net income per common share

Basic earnings per share

$

0.54

$

0.22

Diluted earnings per share

$

0.54

$

0.22

XML

Accumulated Other Comprehensive Income

3 Months Ended

May 04, 2024

Accumulated Other Comprehensive Income [Abstract]

Accumulated Other Comprehensive Income

NOTE 3 – ACCUMULATED OTHER COMPREHENSIVE INCOME:

The following table sets forth information regarding the reclassification out of Accumulated other

comprehensive income (loss) (in thousands) for the three months ended May 4, 2024:

Changes in Accumulated Other 

Comprehensive Income (Loss) (a)

Unrealized Gains

and (Losses) on

Available-for-Sale

Securities

Beginning Balance at February 3, 2024

$

395

 Other comprehensive income (loss) before 

 reclassification

(1,434)

 Amounts reclassified from accumulated

 other comprehensive income (b)

686

Net current-period other comprehensive income (loss)

(748)

Ending Balance at May 4, 2024

$

(353)

(a) All amounts are net-of-tax. Amounts in parentheses indicate a debit/reduction to accumulated other comprehensive

income.

(b) Includes $

892

 impact of Accumulated other comprehensive income reclassifications into Interest and other 

income for net realized gains on available-for-sale securities. The tax impact of this reclassification was $

206

.

The following table sets forth information regarding the reclassification out of Accumulated other

comprehensive income (loss) (in thousands) for the three months ended April 29, 2023:

Changes in Accumulated Other 

Comprehensive Income (Loss) (a)

Unrealized Gains

and (Losses) on

Available-for-Sale

Securities

Beginning Balance at January 28, 2023

$

(1,238)

 Other comprehensive income (loss) before 

 reclassification

355

Net current-period other comprehensive income (loss)

355

Ending Balance at April 29, 2023

$

(883)

(a) All amounts are net-of-tax.

XML

Financing Arrangements

3 Months Ended

May 04, 2024

Financing Arrangements [Abstract]

Financing Arrangements

NOTE 4 – FINANCING ARRANGEMENTS:

At May 4, 2024, the Company had an unsecured revolving credit agreement, which provides for

borrowings of up to $

35.0

 million less the balance of any revocable letters of credit related to purchase

commitments, and is committed through May 2027. The credit agreement contains various financial

covenants and limitations, including the maintenance of specific financial ratios. On April 25, 2024, the

Company amended the revolving credit agreement to modify a definition used in calculating the

Company’s minimum EBITDAR coverage ratio to add back certain income tax receivables included in

the calculation of the ratio. For the quarter ended May 4, 2024, after giving effect to the amendment, the

Company was in compliance with the credit agreement. There were

no

 borrowings outstanding,

no

r any

outstanding letters of credit that reduced borrowing availability, as of May 4, 2024. The weighted

average interest rate under the credit facility was

zero

 at May 4, 2024 due to

no

 outstanding borrowings.

XML

Reportable Segment Information

3 Months Ended

May 04, 2024

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 –

Segment

Reporting

, 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. The products sold in each retail operating segment are similar in nature, as

they all offer women’s apparel, shoes and accessories. Merchandise inventory of 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 retail operating segments is distributed to retail stores

in a similar manner through the Company’s single distribution center and is subsequently distributed to

customers in a similar manner.

The Company operates its women’s fashion specialty retail stores in

31

 states as of May 4, 2024,

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 separate wholly-owned

subsidiaries of the Company.

Three Months Ended

May 4, 2024

Retail

Credit

Total

Revenues

$176,430

$669

$177,099

Depreciation

2,040

-

2,040

Interest and other income

(5,821)

-

(5,821)

Income before taxes

11,374

249

11,623

Capital expenditures

3,261

-

3,261

Three Months Ended

April 29, 2023

Retail

Credit

Total

Revenues

$191,434

$616

$192,050

Depreciation

2,357

-

2,357

Interest and other income

(897)

-

(897)

Income before taxes

6,382

187

6,569

Capital expenditures

6,170

-

6,170

Retail

Credit

Total

Total assets as of May 4, 2024

$438,371

$38,778

$477,149

Total assets as of February 3, 2024

448,488

38,329

486,817

The following schedule summarizes the direct expenses of the credit segment which are reflected in Selling,

general and administrative expenses (in thousands):

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.

Three Months Ended

May 4, 2024

April 29, 2023

Payroll

$

153

$

134

Postage

102

101

Other expenses

165

194

Total expenses

$

420

$

429

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

XML

Share Based Compensation

3 Months Ended

May 04, 2024

Share Based Compensation [Abstract]

Share Based Compensation

NOTE 6 – SHARE BASED COMPENSATION:

As of May 4, 2024, the Company had the 2018 Incentive Compensation Plan for the granting of various

forms of equity-based awards, including restricted stock and stock options for grant to officers, directors and

key employees. 

The following table presents the number of options and shares of restricted stock initially authorized and

available for grant under this plan as of May 4, 2024:

2018

Plan

Options and/or restricted stock initially authorized

4,725,000

Options and/or restricted stock available for grant

2,760,305

In accordance with ASC 718 –

Compensation–Stock Compensation

, 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 May 4,

2024 and February 3, 2024, there was $

11,103,000

 and $

9,334,000

, respectively, of total unrecognized

compensation expense related to unvested restricted stock awards, which had a remaining weighted-

average vesting period of

3.0

 years and

2.1

 years, respectively. The total compensation benefit during the

three months ended May 4, 2024 was $

66,000

 compared to an expense of $

932,000

 for the three months

ended April 29, 2023. This compensation activity is classified as a component of Selling, general and

administrative expenses in the Condensed Consolidated Statements of Income.

The following summary shows the changes in the number of shares of unvested restricted stock outstanding

during the three months ended May 4, 2024:

Weighted

Average

Number of

Grant Date Fair

Shares

Value Per Share

Restricted stock awards at February 3, 2024

1,123,873

$

11.32

Granted

389,900

4.76

Vested

(232,696)

13.22

Forfeited or expired

(2,812)

11.81

Restricted stock awards at May 4, 2024

1,278,265

$

8.97

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 three months ended May 4, 2024 and April 29, 2023,

the Company sold

33,317

 and

22,194

 shares to employees at an average discount of $

0.86

 and $

1.32

 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 $

29,000

 for each of the

three months ended May 4, 2024 and April 29, 2023. These expenses are classified as a component of

Selling, general and administrative expenses in the Condensed Consolidated Statements of Income.

XML

Fair Value Measurements

3 Months Ended

May 04, 2024

Fair Value Measurements [Abstract]

Fair Value Measurements

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 May 4, 2024 and February 3, 2024:

Quoted

Prices in

Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

May 4, 2024

Assets

Inputs

Inputs

Description

Level 1

Level 2

Level 3

Assets:

 State/Municipal Bonds

$

11,477

$

-

$

11,477

$

-

 Corporate Bonds

43,290

-

43,290

-

 U.S. Treasury/Agencies Notes and Bonds

9,873

-

9,873

-

 Cash Surrender Value of Life Insurance

8,749

-

-

8,749

 Asset-backed Securities (ABS)

1,610

-

1,610

-

 Corporate Equities

139

139

-

-

Total Assets

$

75,138

$

139

$

66,250

$

8,749

Liabilities:

 Deferred Compensation

$

(8,662)

$

-

$

-

$

(8,662)

Total Liabilities

$

(8,662)

$

-

$

-

$

(8,662)

Quoted

Prices in

Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

February 3,

2024

Assets

Inputs

Inputs

Description

Level 1

Level 2

Level 3

Assets:

 State/Municipal Bonds

$

12,540

$

-

$

12,540

$

-

 Corporate Bonds

45,400

-

45,400

-

 U.S. Treasury/Agencies Notes and Bonds

18,114

-

18,114

-

 Cash Surrender Value of Life Insurance

8,586

-

-

8,586

 Asset-backed Securities (ABS)

2,958

-

2,958

-

 Corporate Equities

1,084

1,084

-

-

Total Assets

$

88,682

$

1,084

$

79,012

$

8,586

Liabilities:

 Deferred Compensation

$

(8,654)

$

-

$

-

$

(8,654)

Total Liabilities

$

(8,654)

$

-

$

-

$

(8,654)

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 May 4, 2024

and February 3, 2024. The state, municipal and corporate bonds and asset-backed securities have contractual

maturities which range from

seven days

 to

3.0

 years. The U.S. Treasury/Agencies Notes and Bonds have

contractual maturities which range from

2

 months to

1.8

 years. These securities are classified as available-for-

sale and are recorded as Short-term 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 May 4, 2024, the Company had $

0.1

 million of corporate equities and deferred compensation

plan assets of $

8.7

 million. At February 3, 2024, the Company had $

1.1

 million of corporate equities and

deferred compensation plan assets of $

8.6

 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 and municipal bonds 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 the 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’ net asset values, as

recorded in Other noncurrent liabilities in the Condensed Consolidated Balance Sheet. These funds are

designed to mirror mutual funds and money market funds that are observable and actively traded.

The following tables summarize the change in fair value of the Company’s financial assets and liabilities

measured using Level 3 inputs as of May 4, 2024 and February 3, 2024 (dollars in thousands):

Fair Value

Measurements Using

Significant Unobservable

Asset Inputs (Level 3)

Cash Surrender Value

Beginning Balance at February 3, 2024

$

8,586

Redemptions

-

Additions

-

Total gains or (losses)

 Included in interest and other income (or changes in net assets)

163

Ending Balance at May 4, 2024

$

8,749

Fair Value

Measurements Using

Significant Unobservable

Liability Inputs (Level 3)

Deferred Compensation

Beginning Balance at February 3, 2024

$

(8,654)

 Redemptions

253

 Additions

(63)

 Total (gains) or losses

 Included in interest and other income (or changes in net assets)

(198)

Ending Balance at May 4, 2024

$

(8,662)

Fair Value

Measurements Using

Significant Unobservable

Asset Inputs (Level 3)

Cash Surrender Value

Beginning Balance at January 28, 2023

$

9,274

Redemptions

(1,168)

Additions

-

 Total gains or (losses)

 Included in interest and other income (or changes in net assets)

480

Ending Balance at February 3, 2024

$

8,586

Fair Value

Measurements Using

Significant Unobservable

Liability Inputs (Level 3)

Deferred Compensation

Beginning Balance at January 28, 2023

$

(8,903)

 Redemptions

1,119

 Additions

(292)

 Total (gains) or losses

 Included in interest and other income (or changes in net assets)

(578)

Ending Balance at February 3, 2024

$

(8,654)

XML

Recent Accounting Pronouncements

3 Months Ended

May 04, 2024

Recent Accounting Pronouncements [Abstract]

Recent Accounting Pronouncements

NOTE 8 – RECENT ACCOUNTING PRONOUNCEMENTS:

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards

Update (“ASU”) 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment

Disclosures”, which modifies disclosure requirements for all public entities that are required to report

segment information. The update will change the reporting of segments by adding significant segment

expenses, other segment items, title and position of the chief operating decision maker (“COD”) and how

the COD uses the reported measures to make decisions. The update also requires all annual disclosure

about a reportable segment’s profit or loss and assets in interim periods. This guidance is effective for

fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after

December 15, 2024. Early adoption is permitted, and the guidance is applicable retrospectively to all

prior periods presented in the financial statements. The Company is currently in the process of evaluating

the potential impact of adoption of this new guidance on its consolidated financial statements and related

disclosures.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to

Income Tax Disclosures”, which modifies the requirements on income tax disclosures to require

disaggregated information about a reporting entity’s effective tax rate reconciliation as well as

information on income taxes paid. This guidance is effective for fiscal years beginning after December

15, 2024 for all public business entities, with early adoption and retrospective application permitted. The

Company is currently in the process of evaluating the potential impact of adoption of this new guidance

on its consolidated financial statements and related disclosures.

XML

Income Taxes

3 Months Ended

May 04, 2024

Income Taxes [Abstract]

Income Taxes

NOTE 9 – INCOME TAXES:

The Company had an effective tax rate for the first quarter of 2024 of

5.6

% compared to an effective tax

rate of

32.6

% for the first quarter of 2023. Income tax expense for the quarter decreased to $

0.6

 million

in 2024 from $

2.1

 million in 2023. The decrease in tax expense is primarily due to valuation allowances

against net deferred tax assets attributable to U.S. federal net operating loss carryforwards and the impact

of the foreign rate differential and lower state income taxes.

XML

Commitments And Contingencies

3 Months Ended

May 04, 2024

Commitments And Contingencies [Abstract]

Commitments And Contingencies

NOTE 10 – COMMITMENTS AND CONTINGENCIES:

The Company is, from time to time, involved in routine litigation incidental to the conduct of its business,

including litigation regarding the merchandise that it sells, litigation regarding intellectual property,

litigation instituted by persons injured upon premises under its control, litigation with respect to various

employment matters, including alleged discrimination and wage and hour litigation, and litigation with

present or former employees. 

Although such litigation is routine and incidental to the conduct of the Company’s business, as with any

business of its 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 its condensed consolidated financial statements. However, given the inherent

uncertainties involved in such matters, an adverse outcome in one or more of such matters could

materially and adversely affect the Company’s financial condition, results of operations and cash flows in

any particular reporting period. The Company accrues for these matters when the liability is deemed

probable and reasonably estimable.

XML

Revenue Recognition

3 Months Ended

May 04, 2024

Revenue Recognition [Abstract]

Revenue Recognition

NOTE 11 – REVENUE RECOGNITION:

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. Gift cards do

not have expiration dates. Layaway transactions are recorded as deferred revenue until the customer takes

possession or forfeits the merchandise. 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.

No

ne of the credit card receivables are secured. The Company

estimated customer credit losses of $

171,000

 and $

121,000

 for the periods ended May 4, 2024 and April

29, 2023, respectively, on sales purchased by the Company’s proprietary credit card of $

5.7

 million and

$

5.8

 million for the periods ended May 4, 2024 and April 29, 2023, respectively.

The following table provides information about receivables and contract liabilities from contracts with

customers (in thousands):

Balance as of

May 4, 2024

February 3, 2024

Proprietary Credit Card Receivables, net

$

10,972

$

10,909

Gift Card Liability

$

6,849

$

8,143

XML

Leases

3 Months Ended

May 04, 2024

Leases [Abstract]

Leases

NOTE 12 – LEASES:

The Company determines whether an arrangement is a lease at inception. The Company has operating

leases for stores, offices, warehouse space and equipment. Its leases have remaining lease terms of up to

10 years

, some of which include options to extend the lease term for

up to five years

, and some of which

include options to terminate the lease

within one year

. The Company considers these options in

determining the lease term used to establish its right-of-use assets and lease liabilities. The Company’s

lease agreements do not contain any material residual value guarantees or material restrictive covenants.

As most of the Company’s leases do not provide an implicit rate, the Company uses its estimated

incremental borrowing rate based on the information available at commencement date of the lease in

determining the present value of lease payments.

The components of lease cost are shown below (in thousands):

`

Three Months Ended

May 4, 2024

April 29, 2023

Operating lease cost (a)

$

17,002

$

18,078

Variable lease cost (b)

$

497

$

594

(a) Includes right-of-use asset amortization of ($

0.2

) million and ($

0.3

) million for the three months ended

May 4, 2024 and April 29, 2023, respectively.

(b) Primarily relates to monthly percentage rent for stores not presented on the balance sheet.

Supplemental cash flow information and non-cash activity related to the Company’s operating leases are

as follows (in thousands):

Operating cash flow information:

Three Months Ended

May 4, 2024

April 29, 2023

Cash paid for amounts included in the measurement of lease liabilities

$

15,607

$

17,345

Non-cash activity:

Right-of-use assets obtained in exchange for lease obligations, net of rent violations

$

444

$

1,904

Weighted-average remaining lease term and discount rate for the Company’s operating leases are as

follows:

As of

May 4, 2024

April 29, 2023

Weighted-average remaining lease term

2.1

 Years

2.2

 Years

Weighted-average discount rate

4.65%

3.20%

As of May 4, 2024, the maturities of lease liabilities by fiscal year for the Company’s operating leases are

as follows (in thousands):

Fiscal Year

2024 (a)

$

49,240

2025

45,261

2026

29,329

2027

16,591

2028

7,784

Thereafter

690

Total lease payments

148,895

Less: Imputed interest

11,261

Present value of lease liabilities

$

137,634

(a) Excluding the 3 months ended May 4, 2024.

XML

General (Policies)

3 Months Ended

May 04, 2024

General [Abstract]

Consolidation, Policy

The condensed consolidated financial statements as of May 4, 2024 and for the thirteen-week periods

ended May 4, 2024 and April 29, 2023 have been prepared from the accounting records of The Cato

Corporation and its wholly-owned subsidiaries (the “Company”), and all amounts shown are unaudited.

Basis of Accounting, Policy

In the opinion of management, all adjustments considered necessary for a fair presentation of the financial

statements 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, 2024. Amounts as of February 3, 2024 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.

XML

Earnings Per Share (Tables)

3 Months Ended

May 04, 2024

Earnings Per Share [Abstract]

Earnings Per Share

Three Months Ended

May 4, 2024

April 29, 2023

(Dollars in thousands)

Numerator

Net earnings

$

10,974

$

4,428

Earnings allocated to non-vested equity awards

(557)

(227)

Net earnings available to common stockholders

$

10,417

$

4,201

Denominator

Basic weighted average common shares outstanding

19,356,789

19,303,048

Diluted weighted average common shares outstanding

19,356,789

19,303,048

Net income per common share

Basic earnings per share

$

0.54

$

0.22

Diluted earnings per share

$

0.54

$

0.22

XML

Accumulated Other Comprehensive Income (Tables)

3 Months Ended

May 04, 2024

Accumulated Other Comprehensive Income [Abstract]

Reclassification out of Accumulated Other Comprehensive Income (Loss)

Changes in Accumulated Other 

Comprehensive Income (Loss) (a)

Unrealized Gains

and (Losses) on

Available-for-Sale

Securities

Beginning Balance at February 3, 2024

$

395

 Other comprehensive income (loss) before 

 reclassification

(1,434)

 Amounts reclassified from accumulated

 other comprehensive income (b)

686

Net current-period other comprehensive income (loss)

(748)

Ending Balance at May 4, 2024

$

(353)

(a) All amounts are net-of-tax. Amounts in parentheses indicate a debit/reduction to accumulated other comprehensive

income.

(b) Includes $

892

 impact of Accumulated other comprehensive income reclassifications into Interest and other 

income for net realized gains on available-for-sale securities. The tax impact of this reclassification was $

206

.

Changes in Accumulated Other 

Comprehensive Income (Loss) (a)

Unrealized Gains

and (Losses) on

Available-for-Sale

Securities

Beginning Balance at January 28, 2023

$

(1,238)

 Other comprehensive income (loss) before 

 reclassification

355

Net current-period other comprehensive income (loss)

355

Ending Balance at April 29, 2023

$

(883)

(a) All amounts are net-of-tax.

XML

Reportable Segment Information (Tables)

3 Months Ended

May 04, 2024

Reportable Segment Information [Abstract]

Schedule Of Segment Reporting Information, By Segment

Three Months Ended

May 4, 2024

Retail

Credit

Total

Revenues

$176,430

$669

$177,099

Depreciation

2,040

-

2,040

Interest and other income

(5,821)

-

(5,821)

Income before taxes

11,374

249

11,623

Capital expenditures

3,261

-

3,261

Three Months Ended

April 29, 2023

Retail

Credit

Total

Revenues

$191,434

$616

$192,050

Depreciation

2,357

-

2,357

Interest and other income

(897)

-

(897)

Income before taxes

6,382

187

6,569

Capital expenditures

6,170

-

6,170

Retail

Credit

Total

Total assets as of May 4, 2024

$438,371

$38,778

$477,149

Total assets as of February 3, 2024

448,488

38,329

486,817

Direct Expenses of Credit Segment in SGA

Three Months Ended

May 4, 2024

April 29, 2023

Payroll

$

153

$

134

Postage

102

101

Other expenses

165

194

Total expenses

$

420

$

429

XML

Share Based Compensation (Tables)

3 Months Ended

May 04, 2024

Share Based Compensation [Abstract]

Stock Based Compensation Plans

2018

Plan

Options and/or restricted stock initially authorized

4,725,000

Options and/or restricted stock available for grant

2,760,305

Schedule Of Changes In Restricted Stock Outstanding

Weighted

Average

Number of

Grant Date Fair

Shares

Value Per Share

Restricted stock awards at February 3, 2024

1,123,873

$

11.32

Granted

389,900

4.76

Vested

(232,696)

13.22

Forfeited or expired

(2,812)

11.81

Restricted stock awards at May 4, 2024

1,278,265

$

8.97

XML

Fair Value Measurements (Tables)

3 Months Ended

May 04, 2024

Fair Value Measurements [Abstract]

Financial Assets And Liabilities Measured At Fair Value

Quoted

Prices in

Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

May 4, 2024

Assets

Inputs

Inputs

Description

Level 1

Level 2

Level 3

Assets:

 State/Municipal Bonds

$

11,477

$

-

$

11,477

$

-

 Corporate Bonds

43,290

-

43,290

-

 U.S. Treasury/Agencies Notes and Bonds

9,873

-

9,873

-

 Cash Surrender Value of Life Insurance

8,749

-

-

8,749

 Asset-backed Securities (ABS)

1,610

-

1,610

-

 Corporate Equities

139

139

-

-

Total Assets

$

75,138

$

139

$

66,250

$

8,749

Liabilities:

 Deferred Compensation

$

(8,662)

$

-

$

-

$

(8,662)

Total Liabilities

$

(8,662)

$

-

$

-

$

(8,662)

Quoted

Prices in

Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

February 3,

2024

Assets

Inputs

Inputs

Description

Level 1

Level 2

Level 3

Assets:

 State/Municipal Bonds

$

12,540

$

-

$

12,540

$

-

 Corporate Bonds

45,400

-

45,400

-

 U.S. Treasury/Agencies Notes and Bonds

18,114

-

18,114

-

 Cash Surrender Value of Life Insurance

8,586

-

-

8,586

 Asset-backed Securities (ABS)

2,958

-

2,958

-

 Corporate Equities

1,084

1,084

-

-

Total Assets

$

88,682

$

1,084

$

79,012

$

8,586

Liabilities:

 Deferred Compensation

$

(8,654)

$

-

$

-

$

(8,654)

Total Liabilities

$

(8,654)

$

-

$

-

$

(8,654)

Change In Fair Value Of Financial Assets And Liabilities Measured Using Level 3 Inputs

Fair Value

Measurements Using

Significant Unobservable

Asset Inputs (Level 3)

Cash Surrender Value

Beginning Balance at February 3, 2024

$

8,586

Redemptions

-

Additions

-

Total gains or (losses)

 Included in interest and other income (or changes in net assets)

163

Ending Balance at May 4, 2024

$

8,749

Fair Value

Measurements Using

Significant Unobservable

Liability Inputs (Level 3)

Deferred Compensation

Beginning Balance at February 3, 2024

$

(8,654)

 Redemptions

253

 Additions

(63)

 Total (gains) or losses

 Included in interest and other income (or changes in net assets)

(198)

Ending Balance at May 4, 2024

$

(8,662)

Fair Value

Measurements Using

Significant Unobservable

Asset Inputs (Level 3)

Cash Surrender Value

Beginning Balance at January 28, 2023

$

9,274

Redemptions

(1,168)

Additions

-

 Total gains or (losses)

 Included in interest and other income (or changes in net assets)

480

Ending Balance at February 3, 2024

$

8,586

Fair Value

Measurements Using

Significant Unobservable

Liability Inputs (Level 3)

Deferred Compensation

Beginning Balance at January 28, 2023

$

(8,903)

 Redemptions

1,119

 Additions

(292)

 Total (gains) or losses

 Included in interest and other income (or changes in net assets)

(578)

Ending Balance at February 3, 2024

$

(8,654)

XML

Revenue Recognition (Tables)

3 Months Ended

May 04, 2024

Revenue Recognition [Abstract]

Receivables And Contract Liabilities From Contracts With Customers

Balance as of

May 4, 2024

February 3, 2024

Proprietary Credit Card Receivables, net

$

10,972

$

10,909

Gift Card Liability

$

6,849

$

8,143

XML

Leases (Tables)

3 Months Ended

May 04, 2024

Leases [Abstract]

Components Of Lease Cost

`

Three Months Ended

May 4, 2024

April 29, 2023

Operating lease cost (a)

$

17,002

$

18,078

Variable lease cost (b)

$

497

$

594

(a) Includes right-of-use asset amortization of ($

0.2

) million and ($

0.3

) million for the three months ended

May 4, 2024 and April 29, 2023, respectively.

(b) Primarily relates to monthly percentage rent for stores not presented on the balance sheet.

Operating Cash Flow Information

Operating cash flow information:

Three Months Ended

May 4, 2024

April 29, 2023

Cash paid for amounts included in the measurement of lease liabilities

$

15,607

$

17,345

Non-cash activity:

Right-of-use assets obtained in exchange for lease obligations, net of rent violations

$

444

$

1,904

Weighted-Average Remaining Lease Term And Discount Rate

As of

May 4, 2024

April 29, 2023

Weighted-average remaining lease term

2.1

 Years

2.2

 Years

Weighted-average discount rate

4.65%

3.20%

Maturities Of Lease Liabilities By Fiscal Year

Fiscal Year

2024 (a)

$

49,240

2025

45,261

2026

29,329

2027

16,591

2028

7,784

Thereafter

690

Total lease payments

148,895

Less: Imputed interest

11,261

Present value of lease liabilities

$

137,634

(a) Excluding the 3 months ended May 4, 2024.

XML

General (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended
	May 23, 2024	Feb. 16, 2024	May 04, 2024	Apr. 29, 2023
Interest and other income			$ 5,821	$ 897
Quarterly declared dividend			$ 0.17	$ 0.17
Land Held for Investment [Member]
Interest and other income		$ 3,200
Subsequent Event [Member]
Quarterly declared dividend	$ 0.17

XML

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	May 04, 2024	Apr. 29, 2023
Earnings Per Share [Abstract]
Net income	$ 10,974	$ 4,428
Earnings allocated to non-vested equity awards	(557)	(227)
Net earnings available to common stockholders	$ 10,417	$ 4,201
Basic weighted average common shares outstanding	19,356,789	19,303,048
Diluted weighted average common shares outstanding	19,356,789	19,303,048
Basic earnings per share	$ 0.54	$ 0.22
Diluted earnings per share	$ 0.54	$ 0.22

XML

Accumulated Other Comprehensive Income (Reclassification out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands	3 Months Ended
	May 04, 2024	Apr. 29, 2023
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance	$ 395	$ (1,238)
Other comprehensive income (loss) before reclassification	(1,434)	355
Amounts reclassified from accumulated other comprehensive income	686
Net current-period other comprehensive income (loss)	(748)	355
Ending Balance	$ (353)	$ (883)

XML

Accumulated Other Comprehensive Income (Footnote) (Details) - USD ($) $ in Thousands	3 Months Ended
	May 04, 2024	Apr. 29, 2023
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Tax impact of reclassification	$ 649	$ 2,141
Reclassified Accumulated Unrealized Gains and Losses
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest and Other Income	892
Tax impact of reclassification	$ 206

XML

Financing Arrangements (Narrative) (Details) - Revolving Credit Facility [Member]	May 04, 2024 USD ($)
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 35,000,000.0
Borrowings outstanding	0
Outstanding letters of credit	$ 0
Weighted average interest	0.00%

XML

Reportable Segment Information (Narrative) (Details)	3 Months Ended
	May 04, 2024 NumberOfStores Segments
Segment Reporting Information [Line Items]
Number of operating segments	4
Number of reportable segments	2
Number of states in which company operates | NumberOfStores	31
Retail Segment [Member]
Segment Reporting Information [Line Items]
Number of operating segments	3

XML

Reportable Segment Information (Schedule of Segment Reporting Information, By Segment) (Details) - USD ($) $ in Thousands	3 Months Ended
	May 04, 2024	Apr. 29, 2023	Feb. 03, 2024
Segment Reporting Information [Line Items]
Revenues	$ 177,099	$ 192,050
Depreciation	2,040	2,357
Interest and other income	(5,821)	(897)
Income before income taxes	11,623	6,569
Capital expenditures	3,261	6,170
Assets	477,149		$ 486,817
Retail Segment [Member]
Segment Reporting Information [Line Items]
Revenues	176,430	191,434
Depreciation	2,040	2,357
Interest and other income	(5,821)	(897)
Income before income taxes	11,374	6,382
Capital expenditures	3,261	6,170
Assets	438,371		448,488
Credit Segment [Member]
Segment Reporting Information [Line Items]
Revenues	669	616
Depreciation	0	0
Interest and other income	0	0
Income before income taxes	249	187
Capital expenditures	0	$ 0
Assets	$ 38,778		$ 38,329

XML

Reportable Segment Information (Direct Expenses of Credit Segment in SGA) (Details) - USD ($) $ in Thousands	3 Months Ended
	May 04, 2024	Apr. 29, 2023
Segment Reporting Information [Line Items]
Total expenses	$ 56,752	$ 61,934
Credit Segment [Member]
Segment Reporting Information [Line Items]
Payroll	153	134
Postage	102	101
Other expenses	165	194
Total expenses	$ 420	$ 429

XML

Share Based Compensation (Narrative) (Details) - Class A Common Stock [Member] - USD ($)	3 Months Ended		12 Months Ended
	May 04, 2024	Apr. 29, 2023	Feb. 03, 2024
Restricted Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized Compensation Expense	$ 11,103,000		$ 9,334,000
Remaining Weighted-Average Vesting Period	3 years		2 years 1 month 6 days
Compensation Expense	$ 66,000	$ 932,000
Employee Stock Purchase Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Sold	33,317	22,194
Compensation Expense	$ 29,000	$ 29,000
Employee Stock Purchase Plan Share Purchase Discount	$ 0.86	$ 1.32
Employee Stock Purchase Plan Share Purchase Discount Rate	15.00%

XML

Share Based Compensation (Stock Based Compensation Plans) (Details) - 2018 Plan [Member] - Options and or restricted stock [Member]	May 04, 2024 shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options and/or restricted stock initially authorized	4,725,000
Options and/or restricted stock available for grant	2,760,305

XML

Share Based Compensation (Schedule Of Changes In Restricted Stock Outstanding) (Details) - 2004 Plan [Member] - Restricted Stock [Member] - Class A Common Stock [Member]	3 Months Ended
	May 04, 2024 $ / 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	1,123,873
Restricted Stock Awards Granted | shares	389,900
Restricted Stock Awards Vested | shares	(232,696)
Restricted Stock Awards Forfeited | shares	(2,812)
Restricted Stock Awards Ending Balance | shares	1,278,265
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Weighted Average Grant Date Fair Value [Roll Forward]
Restricted Stock Awards Weighted Average Grant Date Fair Value Per Share - Beginning Balance | $ / shares	$ 11.32
Granted Restricted Stock Awards Weighted Average Grant Date Fair Value Per Share | $ / shares	4.76
Vested Restricted Stock Awards Weighted Average Grant Date Fair Value Per Share | $ / shares	13.22
Forfeited Restricted Stock Awards Weighted Average Grant Date Fair Value Per Share | $ / shares	11.81
Restricted Stock Awards Weighted Average Grant Date Fair Value Per Share - Ending Balance | $ / shares	$ 8.97

XML

Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands	May 04, 2024	Feb. 03, 2024
State/Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	$ 11,477	$ 12,540
State/Municipal Bonds [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale, Term	7 days
State/Municipal Bonds [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale, Term	3 years
Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	$ 43,290	45,400
Deferred compensation plan assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Surrender Value of Life Insurance	8,749	8,586
Corporate Equities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	139	1,084
US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	$ 9,873	$ 18,114
US Treasury Securities [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale, Term	2 months
US Treasury Securities [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale, Term	1 year 9 months 18 days

XML

Fair Value Measurements (Financial Assets And Liabilities Measured At Fair Value) (Details) - USD ($) $ in Thousands	May 04, 2024	Feb. 03, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	$ 75,138	$ 88,682
Total Liabilities	(8,662)	(8,654)
Deferred Compensation [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Liabilities, Fair Value Disclosure	(8,662)	(8,654)
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	139	1,084
Total Liabilities	0	0
Level 1 [Member] | Deferred Compensation [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Liabilities, Fair Value Disclosure	0	0
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	66,250	79,012
Total Liabilities	0	0
Level 2 [Member] | Deferred Compensation [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Liabilities, Fair Value Disclosure	0	0
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	8,749	8,586
Total Liabilities	(8,662)	(8,654)
Level 3 [Member] | Deferred Compensation [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Liabilities, Fair Value Disclosure	(8,662)	(8,654)
State/Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	11,477	12,540
State/Municipal Bonds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	0	0
State/Municipal Bonds [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	11,477	12,540
State/Municipal Bonds [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	0	0
Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	43,290	45,400
Corporate Bonds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	0	0
Corporate Bonds [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	43,290	45,400
Corporate Bonds [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	0	0
U.S. Treasury/Agencies Notes and Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	9,873	18,114
U.S. Treasury/Agencies Notes and Bonds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	0	0
U.S. Treasury/Agencies Notes and Bonds [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	9,873	18,114
U.S. Treasury/Agencies Notes and Bonds [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	0	0
Cash Surrender Value of Life Insurance [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Surrender Value of Life Insurance	8,749	8,586
Cash Surrender Value of Life Insurance [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Surrender Value of Life Insurance	0	0
Cash Surrender Value of Life Insurance [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Surrender Value of Life Insurance	0	0
Cash Surrender Value of Life Insurance [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Surrender Value of Life Insurance	8,749	8,586
Asset-backed Securities (ABS)) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	1,610	2,958
Asset-backed Securities (ABS)) [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	0	0
Asset-backed Securities (ABS)) [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	1,610	2,958
Asset-backed Securities (ABS)) [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	0	0
Corporate Equities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	139	1,084
Corporate Equities [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	139	1,084
Corporate Equities [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	0	0
Corporate Equities [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	$ 0	$ 0

XML

Fair Value Measurements (Change In Fair Value Of Financial Assets And Liabilities Measured Using Level 3 Inputs) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	May 04, 2024	Feb. 03, 2024
Deferred Compensation [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	$ (8,654)	$ (8,903)
Redemptions	253	1,119
Additions	(63)	(292)
Total (gains) or losses: Included in interest and other income (or changes in net assets)	(198)	(578)
Ending Balance	(8,662)	(8,654)
Cash Surrender Value of Life Insurance [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	8,586	9,274
Redemptions	0	(1,168)
Additions	0	0
Total gains or (losses): Included in interest and other income (or changes in net assets)	163	480
Ending Balance	$ 8,749	$ 8,586

XML

Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	May 04, 2024	Apr. 29, 2023
Income Taxes [Abstract]
Effective Income Tax Rate	5.60%	32.60%
Income tax expense	$ 649	$ 2,141

XML

Revenue Recognition (Narrative) (Details) - Sales on Company's Proprietary Credit Card [Member] - USD ($)	3 Months Ended
	May 04, 2024	Apr. 29, 2023
Revenue Recognition [Line Items]
Customer credit losses	$ 171,000	$ 121,000
Revenue from Contract with Customer, Excluding Assessed Tax	5,700,000	$ 5,800,000
Secured [Member]
Revenue Recognition [Line Items]
Receivable	$ 0

XML

Revenue Recognition (Receivables And Contract Liabilities From Contracts With Customers) (Details) - USD ($) $ in Thousands	May 04, 2024	Feb. 03, 2024
Revenue Recognition [Abstract]
Proprietary Credit Card Receivables Net	$ 10,972	$ 10,909
Gift Card Liability	$ 6,849	$ 8,143

XML

Leases (Narrative) (Details)	3 Months Ended
	May 04, 2024
Lease, Cost [Abstract]
Options to extend the lease term	up to five years
Option to terminate the lease	within one year
Maximum [Member]
Lease, Cost [Abstract]
Remaining lease terms	10 years

XML

Leases (Components Of Lease Cost) (Details) - USD ($) $ in Thousands	3 Months Ended
	May 04, 2024	Apr. 29, 2023
Lease, Cost [Abstract]
Operating lease cost	$ 17,002	$ 18,078
Variable lease cost	497	594
Right-of-use asset amortization	$ 200	$ 300

XML

Leases (Operating Cash Flow Information) (Details) - USD ($) $ in Thousands	3 Months Ended
	May 04, 2024	Apr. 29, 2023
Lease, Cost [Abstract]
Cash paid for amounts included in the measurement of lease liabilities	$ 15,607	$ 17,345
Right-of-use assets obtained in exchange for lease obligations, net of rent violations	$ 444	$ 1,904

XML

Leases (Weighted-Average Remaining Lease Term And Discount Rate) (Details)	May 04, 2024	Apr. 29, 2023
Lease, Cost [Abstract]
Weighted-average remaining lease term	2 years 1 month 6 days	2 years 2 months 12 days
Weighted-average discount rate	4.65%	3.20%

XML

Leases (Maturities Of Lease Liabilities By Fiscal Year) (Details) $ in Thousands	May 04, 2024 USD ($)
Leases [Abstract]
2024	$ 49,240
2025	45,261
2026	29,329
2027	16,591
2028	7,784
Thereafter	690
Total lease payments	148,895
Less: Imputed interest	11,261
Present value of lease liabilities	$ 137,634

XML

Insider Trading Arrangements	3 Months Ended
	May 04, 2024
Insider Trading Arr [Line Items]
Rule 10b 51 Arr Adopted Flag	false
Rule 10b 51 Arr Trmntd Flag	false
Non Rule 10b 51 Arr Adopted Flag	false
Non Rule 10b 51 Arr Trmntd Flag	false