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Revenue Recognition
 9 Months Ended
Nov. 02, 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.
None
 
of the credit
 
card receivables are
 
secured. During the
 
three
and
 
nine
 
months ended
 
November 2,
 
2024, the
 
Company estimated
 
customer
 
credit
 
losses
 
of
 
$
154,000
and
 
$
492,000
,
 
respectively,
 
compared
 
to
 
$
149,000
 
and
 
$
421,000
 
for
 
the
 
three
 
and
 
nine
 
months
 
ended
October 28,
 
2023, respectively.
 
Sales purchased
 
on the
 
Company’s
 
proprietary credit
 
card for
 
the three
and nine months ended November 2, 2024 were $
5.1
 
million and $
16.4
 
million, respectively, compared to
$
5.7
 
million and $
17.4
 
million for the three and nine months ended October 28, 2023,
 
respectively.
The
 
following
 
table
 
provides
 
information
 
about
 
receivables
 
and
 
contract
 
liabilities
 
from
 
contracts
 
with
customers (in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance as of
November 2, 2024
February 3, 2024
Proprietary Credit Card Receivables, net
$
10,716
$
10,909
Gift Card Liability
$
6,266
$
8,143