22
THE CATO CORPORATION
ITEM 2.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
FORWARD-LOOKING INFORMATION:
The
information
contained
in
“Management’s
Discussion
and
Analysis
of
Financial
Condition
and
Results
of
Operations”
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 increase new store openings and the 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, 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.