Reportable Segment Information - Notes to Financial Statements

9 Months Ended

Oct. 31, 2020

Reportable Segment Information [Abstract]

Reportable Segment Information

NOTE 5 – REPORTABLE SEGMENT INFORMATION:

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

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

The Company operates its women’s fashion specialty retail stores in 33 states as of October 31, 2020, principally in the southeastern United States. The Company offers its own credit card to its customers and all credit authorizations, payment processing and collection efforts are performed by a separate subsidiary of the Company.

NOTE 5 – REPORTABLE SEGMENT INFORMATION (CONTINUED):

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

Three Months Ended				Nine Months Ended
October 31, 2020	Retail	Credit	Total	October 31, 2020	Retail	Credit	Total
Revenues	$150,203	$588	$150,791	Revenues	$417,616	$2,077	$419,693
Depreciation	3,618	1	3,619	Depreciation	11,112	1	11,113
Interest and other income	(791)	-	(791)	Interest and other income	(3,603)	-	(3,603)
Income/(Loss) before income taxes	(13,559)	233	(13,326)	Income/(Loss) before income taxes	(62,851)	943	(61,908)
Capital expenditures	1,428	-	1,428	Capital expenditures	11,228	-	11,228
Three Months Ended				Nine Months Ended
November 2, 2019	Retail	Credit	Total	November 2, 2019	Retail	Credit	Total
Revenues	$190,637	$886	$191,523	Revenues	$631,751	$2,705	$634,456
Depreciation	3,843	1	3,844	Depreciation	11,522	1	11,523
Interest and other income	(1,662)	-	(1,662)	Interest and other income	(4,491)	-	(4,491)
Income/(Loss) before income taxes	5,571	465	6,036	Income/(Loss) before income taxes	44,251	1,357	45,608
Capital expenditures	2,729	-	2,729	Capital expenditures	4,946	-	4,946
	Retail	Credit	Total
Total assets as of October 31, 2020	$543,827	$47,044	$590,871
Total assets as of February 1, 2020	636,503	48,473	684,976

The Company evaluates segment performance based on income before taxes. The Company does not allocate certain corporate expenses or income taxes to the credit segment.The following schedule summarizes the direct expenses of the credit segment, which are reflected in Selling, general and administrative expenses (in thousands):

	Three Months Ended				Nine Months Ended
		October 31, 2020		November 2, 2019		October 31, 2020		November 2, 2019
Payroll	$	135	$	164	$	417	$	478
Postage		85		110		278		351
Other expenses		134		146		438		518
Total expenses	$	354	$	420	$	1,133	$	1,347