Reportable Segment Information

9 Months Ended

Oct. 29, 2022

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 32 states as of October 29, 2022, 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 wholly-owned 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 29, 2022	Retail	Credit	Total	October 29, 2022	Retail	Credit	Total
Revenues	$176,057	$569	$176,626	Revenues	$578,580	$1,631	$580,211
Depreciation	2,864	-	2,864	Depreciation	8,417	1	8,418
Interest and other income	(2,278)	-	(2,278)	Interest and other income	(4,565)	-	(4,565)
Income (Loss) before income taxes	(9,280)	171	(9,109)	Income (Loss) before income taxes	5,623	385	6,008
Capital expenditures	3,998	-	3,998	Capital expenditures	14,382	-	14,382
Three Months Ended				Nine Months Ended
October 30, 2021	Retail	Credit	Total	October 30, 2021	Retail	Credit	Total
Revenues	$171,708	$505	$172,213	Revenues	$591,497	$1,547	$593,044
Depreciation	3,172	1	3,173	Depreciation	9,351	1	9,352
Interest and other income	(541)	-	(541)	Interest and other income	(1,719)	-	(1,719)
Income (Loss) before income taxes	2,863	27	2,890	Income (Loss) before income taxes	44,769	468	45,237
Capital expenditures	665	-	665	Capital expenditures	1,790	-	1,790
	Retail	Credit	Total
Total assets as of October 29, 2022	$502,307	$38,238	$540,545
Total assets as of January 29, 2022	595,487	38,279	633,766

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 29, 2022		October 30, 2021		October 29, 2022		October 30, 2021
Payroll	$	120	$	80	$	389	$	362
Postage		107		59		299		252
Other expenses		172		338		557		464
Total expenses	$	399	$	477	$	1,245	$	1,078