exhibit991

8100 Denmark Road

P.O.

Box 34216

Charlotte, NC

28234

(704) 554-8510

EXHIBIT 99.1

The CATO Corporation

NEWS RELEASE

FOR IMMEDIATE RELEASE

For Further Information Contact:

John R. Howe

Executive Vice President

Chief Financial Officer

704-551-7315

CATO

REPORTS 4Q AND FULL-YEAR LOSS

CHARLOTTE, N.C. (March 18, 2021)

–– The Cato Corporation (NYSE: CATO)

today reported losses

for the fourth quarter and year ended January 30, 2021.

For the fourth quarter, the Company

reported a net loss of $6.9 million, or ($0.31) per diluted share, compared to a net loss of $3.2 million

or ($0.13) per diluted share for the prior fourth quarter ended February 1, 2020.

Full-year fiscal 2020

net loss was $46.1 million or ($1.96) per diluted share compared to income of $35.9 million or $1.46

earnings per diluted share for 2019.

Sales for fiscal fourth quarter ended January 30, 2021 were $153.2 million, a decrease of 19% from

sales of $188.4 million for the fourth quarter ended February 1, 2020. For the quarter, same-store

sales decreased 20% from last year.

For the year, the Company's sales decreased 30% to $567.5

million from 2019 sales of $816.2 million.

Same-store sales for the year decreased 32% to last year.

"We began 2020 with a focus on growing the business,” said John Cato, Chairman, President and

Chief Executive Officer. “As a

result of the COVID-19 pandemic, our focus quickly shifted to

protecting the business.”

Fourth-quarter gross margin decreased to 29.9% of sales from 34.3% of sales in 2019 primarily due

to a reduction in merchandise contribution combined with the effects of deleveraging occupancy

expense.

Selling, general and administrative expenses were 37.0% of sales compared to 35.6% in

the prior year.

SG&A costs as a percent of sales were higher in the quarter primarily due to a store

impairment charge of $6.2 million, partially offset by the elimination of incentive compensation

compared to prior year and company-wide expense reductions. A pre-tax loss and the beneficial

8100 Denmark Road

P.O.

Box 34216

Charlotte, NC

28234

(704) 554-8510

effects of the CARES Act resulted in $2.4 million of tax benefit versus expense of $0.8 million last

year.

For 2020, gross margin decreased to 23.7% of sales from 37.6% of sales in 2019 due to a reduction

in merchandise contribution combined with the effects of deleveraging occupancy and buying

expenses.

Selling, general and administrative expenses increased to 36.1% of sales compared to

32.3% in the prior year.

The selling, general and administrative rate increase was primarily due to

impairment charges of $13.7 million and the effects of deleveraging corporate expenses, partially

offset by the elimination of incentive compensation and company-wide expense reductions.

Income

tax benefit for the year was $25.1 million compared to an expense of $7.3 million last year.

"2020 was a challenging year for specialty apparel retail.

We made some difficult decisions in an

effort to sustain our business in the wake of the pandemic," Mr.

Cato said.

“Despite the challenges of

the COVID-19 pandemic, Cato continues to maintain a strong balance sheet, with $143.9 million in

unrestricted cash and short-term investments and no debt.

As we begin to regain ground lost during

2020, our priority will continue to be the health and safety of our associates and customers, providing

a safe shopping environment, while offering great value to our customers.”

For the fiscal year ended

January 30, 2021, the Company opened 76 stores, relocated 3 stores and closed 27 stores.

As of

January 30, 2021, the Company operated 1,330 stores in 33 states.

As the effects of the pandemic continue into 2021, there remains a high level of uncertainty about

when these effects will subside, the continued impact they will have on our customers’ buying habits

and the duration of supply chain disruption.

In light of these uncertainties, we are not planning any

store development for 2021, are keeping our capital expenditures to a minimum and not providing a

2021 outlook.

Statements, in this press release that express a belief,

expectation or intention, as well as those that are not historical

fact, including, without limitation, any statements regarding

the potential impact of the COVID-19 pandemic on the

Company’s business, under the Private Securities

Litigation Reform Act of 1995. 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. Such

forward-looking statements are based on current expectations

that are subject to known and unknown risks, uncertainties

and other factors that could cause actual results to differ

materially from those contemplated by the forward-looking

statements.

Such factors include, but are not limited to, the following:

any actual or perceived deterioration in the

conditions that drive consumer confidence and spending,

including, but not limited to, 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 and

the availability of credit; changes in laws, regulations

governmental 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

8100 Denmark Road

P.O.

Box 34216

Charlotte, NC

28234

(704) 554-8510

grow and perform as expected; adverse weather,

public health threats (including the global coronavirus

(COVID-19)

pandemic) or similar conditions that may affect our sales or operations;

inventory risks due to shifts in market demand,

including the ability to liquidate excess inventory at anticipated

margins; and other factors discussed under “Risk

Factors”

in Part I, Item 1A of the Company’s most recently filed

annual report on Form 10-K and in other reports we file with or

furnish to the Securities and Exchange Commission (“SEC”)

from time to time.

The Company does not undertake, to

publicly update or revise any forward-looking statements

made in this press release even if experience or future changes

make it clear that any outcomes expressed or implied by

such forward-looking statements will not be realized.

The

Company is not responsible for any changes made to this

press release by wire or internet services.

# # #

8100 Denmark Road

P.O.

Box 34216

Charlotte, NC

28234

(704) 554-8510

THE CATO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

FOR THE PERIODS ENDED JANUARY 30, 2021 AND FEBRUARY 1, 2020

(Dollars in thousands, except per share data)

Quarter Ended

Twelve Months Ended

January 30,

February 1,

January 30,

February 1,

2021

Sales

2020

Sales

2021

Sales

2020

Sales

REVENUES

Retail sales

153,233

100.0%

188,404

100.0%

567,516

100.0%

816,184

100.0%

Other revenue (principally finance,

late fees and layaway charges)

2,185

1.4%

2,475

1.3%

7,595

1.3%

9,151

1.1%

Total revenues

155,418

101.4%

190,879

101.3%

575,111

101.3%

825,335

101.1%

GROSS MARGIN (Memo)

45,784

29.9%

64,577

34.3%

134,329

23.7%

307,278

37.6%

COSTS AND EXPENSES, NET

Cost of goods sold

107,449

70.1%

123,827

65.7%

433,187

76.3%

508,906

62.4%

Selling, general and administrative

56,726

37.0%

67,065

35.6%

205,079

36.1%

263,802

32.3%

Depreciation

3,568

2.3%

3,963

2.1%

14,681

2.6%

15,485

1.9%

Interest and other income

(3,027)

-2.0%

(1,574)

-0.8%

(6,630)

-1.2%

(6,065)

-0.7%

Cost and expenses, net

164,716

107.5%

193,281

102.6%

646,317

113.9%

782,128

95.8%

Income (Loss) Before Income Taxes

(9,298)

-6.1%

(2,402)

-1.3%

(71,206)

-12.6%

43,207

5.3%

Income Tax (Benefit)/Expense

(2,370)

-1.5%

808

0.4%

(25,069)

-4.4%

7,310

0.9%

Net Income (Loss)

(6,928)

-4.5%

(3,210)

-1.7%

(46,137)

-8.1%

35,897

4.4%

Basic Earnings Per Share

(0.31)

(0.13)

(1.96)

1.46

Diluted Earnings Per Share

(0.31)

(0.13)

(1.96)

1.46

8100 Denmark Road

P.O.

Box 34216

Charlotte, NC

28234

(704) 554-8510

THE CATO CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

January 30,

February 1,

2021

2020

(Unaudited)

ASSETS

Current Assets:

Cash and cash equivalents

17,510

11,824

Short-term investments

126,416

200,387

Restricted cash

3,918

3,896

Accounts receivable - net

52,320

26,088

Merchandise inventories

84,123

115,365

Other current assets

5,839

5,237

Total Current Assets

290,126

362,797

Property and Equipment – net

72,550

88,667

Noncurrent Deferred Income Taxes

5,685

8,636

Other Assets

22,850

24,073

Right-of-Use Assets, net

199,817

200,803

TOTAL

591,028

684,976

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

116,913

136,153

Current Lease Liability

63,421

63,149

Noncurrent Liabilities

19,536

21,976

Lease Liability

143,315

147,184

Stockholders' Equity

247,843

316,514

TOTAL

591,028

684,976