EXHIBIT 99.1

The CATO Corporation

NEWS RELEASE

FOR IMMEDIATE RELEASE

For Further Information Contact:

 Charles D. Knight

 Executive Vice President

 Chief Financial Officer

 InvestorRelations@catocorp.com

CATO REPORTS 1Q EARNINGS 

CHARLOTTE, N.C. (May 19, 2022) – The Cato Corporation (NYSE: CATO) today reported net

income of $9.7 million or $0.46 per diluted share for the first quarter ended April 30, 2022, compared

to net income of $20.7 million or $0.92 per diluted share for the first quarter ended May 1, 2021. 

Sales for the first quarter ended April 30, 2022 were $204.9 million, or a decrease of 3% from sales of

$211.2 million for the first quarter ended May 1, 2021. The Company’s same-store sales for the

quarter decreased 2% compared to 2021. 

"Our first quarter sales were negatively impacted by cooler, wetter weather,” said John Cato,

Chairman, President and Chief Executive Officer.

“As anticipated, we continued to

experience late

merchandise shipments, a result of the supply chain disruption and overseas COVID restrictions,

coupled with the pressure of inflation on consumers’ discretionary income and intermittent store

closings due to the effects of the tight labor market.

” 

First-quarter gross margin decreased from 41.5% to 35.5% of sales in 2022 due to lower

merchandise margins. 

Selling, General and Administrative expenses as a percent of sales

decreased from 29.9% to 29.5% of sales during the quarter primarily due to decreased incentive

compensation expense, partially offset by increased payroll, reflecting more normalized operations,

compared to the prior year. 

Income tax expense for the quarter was $1.9 million compare

d to $3.1

million last year. 

“The effects of continued late merchandise shipments, inflation-related increases to our costs and

increased pressure on our customers’ discretionary income are expected to remain challenging

throughout the year,” stated Mr. Cato. “As we move forward, following two years of unpredictable

business cycles, we are cautious about the remainder of the year in the face of these ongoing

uncertainties.”

During the first quarter ended April 30, 2022, the Company opened 4 stores and relocated 1 store. 

As of April 30, 2022, the Company operated 1,315 stores in 32 states, compared to 1,325 stores in 32

states as of May 1, 2021. 

The Cato Corporation is a leading specialty retailer of value-priced fashion apparel and accessories

operating three concepts, “Cato,” “Versona” and “It’s Fashion.” The Company’s Cato stores offer

exclusive merchandise with fashion and quality comparable to mall specialty stores at low prices

every day. The Company also offers exclusive merchandise found in its Cato stores at

www.catofashions.com. Versona is a unique fashion destination offering apparel and accessories

including jewelry, handbags and shoes at exceptional prices every day. Select Versona merchandise

can also be found at www.shopversona.com. It’s Fashion offers fashion with a focus on the latest

trendy styles for the entire family at low prices every day.

Statements in this press release that express a belief, expectation or intention, as well as those that are not a historical

fact,

 i

ncluding, without limitation, statements regarding the Company’s expected or estimated operational financial results,

activities or opportunities, and potential impacts and effects of the coronavirus are considered “forward-looking” within the

meaning of The Private Securities Litigation Reform Act of 1995. 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, 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 or regulations 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 the ability of any such

new stores to grow and perform as expected; adverse weather, public health threats (including the global coronavirus

(COVID-19) outbreak) 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 the

Company files with or furnishes to the SEC from time to time. The Company does not undertake to publicly update or

revise the forward-looking statements even if experience or future changes make it clear that the projected results

expressed or implied therein will not be realized. The Company is not responsible for any changes made to this press

release by wire or Internet services

.

* * *

THE CATO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

FOR THE PERIODS ENDED APRIL 30, 2022 AND MAY 1, 2021

(Dollars in thousands, except per share data)

Q

u

a

r

t

e

r

E

n

d

e

d

April 30,

%

May 1,

%

2

0

2

2 

Sales

2

0

2

1

Sales

REVENUES

 Retail sales

$

204,933 

100.0%

$

211,234 

100.0%

 Other revenue (principally

finance,

 late fees and layaway

charges)

1,788 

0.9%

1,851 

0.9%

 Total revenues

206,721 

100.9%

213,085 

100.9%

GROSS MARGIN (Memo)

72,690 

35.5%

87,559 

41.5%

COSTS AND EXPENSES,

NET

 Cost of goods sold

132,243 

64.5%

123,675 

58.5%

 Selling, general and

administrative

60,441 

29.5%

63,237 

29.9%

 Depreciation

2,743 

1.3%

3,042 

1.4%

 Interest and other income

(403)

-0.2%

(663)

-0.3%

 Cost and expenses, net

195,024 

95.2%

189,291 

89.6%

Income (Loss) Before Income

Taxes

11,697 

5.7%

23,794 

11.3%

Income Tax Expense (Benefit) 

1,949 

1.0%

3,081 

1.5%

Net Income (Loss)

$

9,748 

4.8%

$

20,713 

9.8%

Basic Earnings Per Share

$

0.46 

$

0.92 

Basic Weighted Average

Shares

21,345,489 

22,512,566 

Diluted Earnings Per Share

$

0.46 

$

0.92 

THE CATO CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

Ap

ril

30,

January

29,

202

2 

2022 

(Un

aud

ited

)

(Unaudite

d)

ASSETS

Current Assets

 Cash and cash equivalents

$

25,881 

$

19,759 

 Short-term investments

120,021 

145,998 

 Restricted cash

3,920 

3,919 

 Accounts receivable - net

60,121 

55,812 

 Merchandise inventories

127,576 

124,907 

 Other current assets

6,029 

5,273 

Total Current Assets

343,548 

355,668 

Property and Equipment - net

67,079 

63,083 

Noncurrent Deferred Income

Taxes

9,674 

9,313 

Other Assets

23,192 

24,437 

Right-of-Use Assets, net

168,537 

181,265 

 TOTAL

$

612,030 

$

633,766 

LIABILITIES AND

STOCKHOLDERS'

EQUITY

Current Liabilities

$

172,569 

$

177,327 

Current Lease Liability

63,175 

66,808 

Noncurrent Liabilities

17,797 

17,914 

Lease Liability

107,837 

117,521 

Stockholders' Equity

250,652 

254,196 

 TOTAL

$

612,030 

$

633,766