10-Q

UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM

10-Q

☑

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF

1934

For the quarterly period ended

July 29, 2023

OR

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF

1934

For the transition period from ________________to__________________

Commission file number 

1-31340

THE CATO CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

56-0484485

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

8100 Denmark Road

,

Charlotte

,

North Carolina

28273-5975

(Address of principal executive offices)

(Zip Code)

(704)

554-8510

(Registrant's telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A - Common Stock, par value $.033 per share

CATO

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities

Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),

and (2) has been subject to such filing requirements for the past 90 days.

Yes

X

No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted

pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the

registrant was required to submit such files).

Yes

X

No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting

company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting

company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☑

 Non-accelerated filer 

☐

 Smaller reporting company 

☐

 Emerging growth company 

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for

complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐

As of July 29, 2023, there were

18,825,772

 shares of Class A common stock and

1,763,652

 shares of Class B common stock outstanding.

2

THE CATO CORPORATION

FORM 10-Q

Quarter Ended July 29, 2023

Table of Contents

Page No.

PART I – FINANCIAL INFORMATION (UNAUDITED)

Item 1.

Financial Statements (Unaudited):

Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)

3

For the Three Months and Six Months Ended July 29, 2023 and July 30, 2022

Condensed Consolidated Balance Sheets

4

At July 29, 2023 and January 28, 2023

Condensed Consolidated Statements of Cash Flows

5

For the Six Months Ended July 29, 2023 and July 30, 2022

Condensed Consolidated Statements of Stockholders’ Equity

6 – 7

For the Six Months Ended July 29, 2023 and July 30, 2022

Notes to Condensed Consolidated Financial Statements

8 – 22

For the Three Months and Six Months Ended July 29, 2023 and July 30, 2022

Item 2.

Management’s Discussion and Analysis of Financial Condition and

Results of Operations

23 – 29

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

29

Item 4.

Controls and Procedures

29

PART II – OTHER INFORMATION

Item 1.

Legal Proceedings

30

Item 1A.

Risk Factors

30

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

31

Item 3.

Defaults Upon Senior Securities

31

Item 4.

Mine Safety Disclosures

31

Item 5.

Other Information

31

Item 6.

Exhibits

31

Signatures

32

3

PART I FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

THE CATO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND

COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

Three Months Ended

Six Months Ended

July 29, 2023

July 30, 2022

July 29, 2023

July 30, 2022

(Dollars in thousands, except per share data)

REVENUES

 Retail sales

$

181,181

$

195,006

$

371,492

$

399,939

 Other revenue (principally finance charges, late fees and

 layaway charges)

1,690

1,858

3,429

3,646

 Total revenues

182,871

196,864

374,921

403,585

COSTS AND EXPENSES, NET

 Cost of goods sold (exclusive of depreciation shown below)

117,617

131,749

239,704

263,992

 Selling, general and administrative (exclusive of depreciation

 shown below)

61,618

60,768

123,552

121,209

 Depreciation

2,510

2,811

4,867

5,554

 Interest and other income

(1,334)

(1,884)

(2,231)

(2,287)

 Costs and expenses, net

180,411

193,444

365,892

388,468

Income before income taxes

2,460

3,420

9,029

15,117

Income tax expense

1,333

5,694

3,475

7,643

Net income (loss)

$

1,127

$

(2,274)

$

5,554

$

7,474

Basic earnings (loss) per share

$

0.06

$

(0.11)

$

0.27

$

0.35

Diluted earnings (loss) per share

$

0.06

$

(0.11)

$

0.27

$

0.35

Comprehensive income:

Net income (loss)

$

1,127

$

(2,274)

$

5,554

$

7,474

Unrealized gain (loss) on available-for-sale securities, net of 

 deferred income taxes of $

50

 and $

156

 for the three and 

 six months ended July 29, 2023 and $

18

 and $(

343

) for 

 the three and six months ended July 30, 2022, respectively

167

61

522

(1,145)

Comprehensive income (loss)

$

1,294

$

(2,213)

$

6,076

$

6,329

See notes to condensed consolidated financial statements (unaudited).

4

THE CATO CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

July 29, 2023

January 28, 2023

ASSETS

(Dollars in thousands)

Current Assets:

Cash and cash equivalents 

$

55,977

$

20,005

Short-term investments 

77,222

108,652

Restricted cash

3,877

3,787

Accounts receivable, net of allowance for customer credit losses of

 $

763

 and $

761

 at July 29, 2023 and January 28, 2023, respectively

26,915

26,497

Merchandise inventories 

92,718

112,056

Prepaid expenses and other current assets

7,098

6,676

 Total Current Assets 

263,807

277,673

Property and equipment – net 

73,871

70,382

Noncurrent deferred income taxes

9,888

9,213

Other assets 

21,770

21,596

Right-of-Use assets – net 

138,331

174,276

 Total Assets 

$

507,667

$

553,140

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

Accounts payable 

$

84,867

$

91,956

Accrued expenses 

38,546

41,338

Accrued employee benefits and bonus

997

1,690

Accrued income taxes 

3,561

613

Current lease liability

32,431

67,360

 Total Current Liabilities 

160,402

202,957

Other noncurrent liabilities

16,342

16,183

Lease liability

105,390

107,407

Stockholders' Equity:

Preferred stock, $

100

 par value per share,

100,000

 shares

 authorized, none issued 

-

-

Class A common stock, $

0.033

 par value per share,

50,000,000

 shares authorized;

18,825,772

 shares and

18,723,225

 shares

 issued at July 29, 2023 and January 28, 2023, respectively

636

632

Convertible Class B common stock, $

0.033

 par value per share,

15,000,000

 shares authorized; 

1,763,652

 shares and

1,763,652

 shares

 issued at July 29, 2023 and January 28, 2023, respectively

59

59

Additional paid-in capital 

124,798

122,431

Retained earnings 

100,756

104,709

Accumulated other comprehensive income (loss)

(716)

(1,238)

 Total Stockholders' Equity 

225,533

226,593

 Total Liabilities and Stockholders' Equity 

$

507,667

$

553,140

See notes to condensed consolidated financial statements (unaudited).

5

THE CATO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

Six Months Ended

July 29, 2023

July 30, 2022

(Dollars in thousands)

Operating Activities:

Net income

$

5,554

$

7,474

Adjustments to reconcile net income to net cash provided

 by operating activities:

 Depreciation

4,867

5,554

 Provision for customer credit losses

248

145

 Purchase premium and premium amortization of investments

(97)

607

 Share-based compensation

2,192

2,028

 Deferred income taxes

(832)

-

 Loss on disposal of property and equipment

1

93

 Changes in operating assets and liabilities which provided

 (used) cash:

 Accounts receivable

(666)

30,837

 Merchandise inventories

19,338

8,314

 Prepaid and other assets

(667)

(24)

 Operating lease right-of-use assets and liabilities

(1,001)

(1,207)

 Accrued income taxes

2,948

5,168

 Accounts payable, accrued expenses and other liabilities

(10,306)

(42,013)

Net cash provided by operating activities

21,579

16,976

Investing Activities:

Expenditures for property and equipment 

(8,470)

(10,384)

Purchase of short-term investments

(14,497)

(28,385)

Sales of short-term investments

46,777

48,917

Net cash provided by investing activities

23,810

10,148

Financing Activities:

Dividends paid

(6,962)

(7,270)

Repurchase of common stock

(2,563)

(9,596)

Proceeds from employee stock purchase plan

198

147

Net cash used in financing activities

(9,327)

(16,719)

Net increase in cash, cash equivalents, and restricted cash

36,062

10,405

Cash, cash equivalents, and restricted cash at beginning of period

23,792

23,678

Cash, cash equivalents, and restricted cash at end of period 

$

59,854

$

34,083

Non-cash activity:

Accrued other assets and property and equipment

$

572

$

751

See notes to condensed consolidated financial statements (unaudited).

6

THE CATO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(UNAUDITED)

Accumulated

Additional

Other

Total

Common

Paid-in

Retained

Comprehensive

Stockholders'

Stock

Capital

Earnings

Income

Equity

(Dollars in thousands)

Balance — January 28, 2023

$

691

$

122,431

$

104,709

$

(1,238)

$

226,593

Comprehensive income:

 Net income

-

-

4,428

-

4,428

 Unrealized net gains on available-for-sale securities, net of

 deferred income tax expense of $

107

-

-

-

355

355

Dividends paid ($

0.17

 per share)

-

-

(3,455)

-

(3,455)

Class A common stock sold through employee stock purchase plan

-

195

-

-

195

Share-based compensation issuances and exercises

-

-

3

-

3

Share-based compensation expense

-

929

-

-

929

Repurchase and retirement of treasury shares

(8)

-

(2,259)

-

(2,267)

Balance — April 29, 2023

$

683

$

123,555

$

103,426

$

(883)

$

226,781

Comprehensive income:

 Net income 

-

-

1,127

-

1,127

 Unrealized net gains on available-for-sale securities, net of

 deferred income tax expense of $

50

-

-

-

167

167

Dividends paid ($

0.17

 per share)

-

-

(3,507)

-

(3,507)

Class A common stock sold through employee stock purchase plan

1

31

-

-

32

Share-based compensation issuances and exercises

-

-

-

-

-

Share-based compensation expense

12

1,212

3

-

1,227

Repurchase and retirement of treasury shares

(1)

-

(293)

-

(294)

Balance — July 29, 2023

$

695

$

124,798

$

100,756

$

(716)

$

225,533

See notes to condensed consolidated financial statements (unaudited).

7

THE CATO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(UNAUDITED)

Accumulated

Additional

Other

Total

Common

Paid-in

Retained

Comprehensive

Stockholders'

Stock

Capital

Earnings

Income

Equity

(Dollars in thousands)

Balance — January 29, 2022

$

728

$

119,540

$

134,208

$

(280)

$

254,196

Comprehensive income:

 Net income

-

-

9,748

-

9,748

 Unrealized net losses on available-for-sale securities, net of

 deferred income tax benefit of $

362

-

-

-

(1,206)

(1,206)

Dividends paid ($

0.17

 per share)

-

-

(3,638)

-

(3,638)

Class A common stock sold through employee stock purchase plan

-

111

-

-

111

Share-based compensation issuances and exercises 

-

-

5

-

5

Share-based compensation expense

-

598

-

-

598

Repurchase and retirement of treasury shares

(20)

-

(9,142)

-

(9,162)

Balance — April 30, 2022

$

708

$

120,249

$

131,181

$

(1,486)

$

250,652

Comprehensive income:

 Net loss

-

-

(2,274)

-

(2,274)

 Unrealized net gains on available-for-sale securities, net of 

 deferred income tax expense of $

18

-

-

-

61

61

Dividends paid ($

0.17

 per share)

-

-

(3,632)

-

(3,632)

Class A common stock sold through employee stock purchase plan

-

62

-

-

62

Share-based compensation issuances and exercises 

7

308

6

-

321

Share-based compensation expense

-

1,077

-

-

1,077

Repurchase and retirement of treasury shares

(1)

-

(433)

-

(434)

Balance — July 30, 2022

$

714

$

121,696

$

124,848

$

(1,425)

$

245,833

See notes to condensed consolidated financial statements (unaudited).

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS AND SIX MONTHS ENDED JULY 29, 2023 AND JULY 30, 2022

8

NOTE 1 - GENERAL

:

The condensed consolidated financial statements as of July 29, 2023 and for the

twenty-six-week

 periods

ended July 29, 2023 and July 30, 2022 have been prepared from the accounting records of The Cato

Corporation and its wholly-owned subsidiaries (the “Company”), and all amounts shown are unaudited. 

In the opinion of management, all adjustments considered necessary for a fair presentation of the financial

statements have been included. All such adjustments are of a normal, recurring nature unless otherwise

noted. The results of the interim period may not be indicative of the results expected for the entire year.

The interim financial statements should be read in conjunction with the consolidated financial statements

and notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended

January 28, 2023. Amounts as of January 28, 2023 have been derived from the audited balance sheet, but

do not include all disclosures required by accounting principles generally accepted in the United States of

America.

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS AND SIX MONTHS ENDED JULY 29, 2023 AND JULY 30, 2022

9

NOTE 2 - EARNINGS PER SHARE:

Accounting Standard Codification (“ASC”) 260 –

Earnings Per Share

 requires dual presentation of basic and

diluted Earnings Per Share (“EPS”) on the face of all income statements for all entities with complex capital

structures. The Company has presented one basic EPS and one diluted EPS amount for all common shares in

the accompanying Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss). 

While the Company’s certificate of incorporation provides the right for the Board of Directors to declare

dividends on Class A shares without declaration of commensurate dividends on Class B shares, the Company

has historically paid the same dividends to both Class A and Class B shareholders and the Board of Directors

has resolved to continue this practice. Accordingly, the Company’s allocation of income for purposes of the

EPS computation is the same for Class A and Class B shares and the EPS amounts reported herein are

applicable to both Class A and Class B shares.

Basic EPS is computed as net income less earnings allocated to non-vested equity awards divided by the

weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential

dilution that could occur from common shares issuable through stock options and the Employee Stock

Purchase Plan.

Three Months Ended

Six Months Ended

July 29, 2023

July 30, 2022

July 29, 2023

July 30, 2022

(Dollars in thousands)

Numerator

Net earnings (loss)

$

1,127

$

(2,274)

$

5,554

$

7,474

(Earnings) loss allocated to non-vested equity awards

(54)

132

(292)

(405)

Net earnings (loss) available to common stockholders

$

1,073

$

(2,142)

$

5,262

$

7,069

Denominator

Basic weighted average common shares outstanding

19,395,484

20,005,315

19,349,266

20,077,258

Diluted weighted average common shares outstanding

19,395,484

20,005,315

19,349,266

20,077,258

Net income (loss) per common share

Basic earnings (loss) per share

$

0.06

$

(0.11)

$

0.27

$

0.35

Diluted earnings (loss) per share

$

0.06

$

(0.11)

$

0.27

$

0.35

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS AND SIX MONTHS ENDED JULY 29, 2023 AND JULY 30, 2022

10

NOTE 3 – ACCUMULATED OTHER COMPREHENSIVE INCOME:

The following table sets forth information regarding the reclassification out of Accumulated other

comprehensive income (in thousands) for the three months ended July 29, 2023:

Changes in Accumulated Other 

Comprehensive Income (a)

Unrealized Gains

and (Losses) on

Available-for-Sale

Securities

Beginning Balance at April 29, 2023

$

(883)

 Other comprehensive income before 

 reclassification

164

 Amounts reclassified from accumulated

 other comprehensive income (b)

3

Net current-period other comprehensive income

167

Ending Balance at July 29, 2023

$

(716)

(a) All amounts are net-of-tax. Amounts in parentheses indicate a debit/reduction to other comprehensive income.

(b) Includes $

4

 impact of Accumulated other comprehensive income reclassifications into Interest and other 

income for net gains on available-for-sale securities. The tax impact of this reclassification was $

1

.

The following table sets forth information regarding the reclassification out of Accumulated other

comprehensive income (in thousands) for the six months ended July 29, 2023:

Changes in Accumulated Other 

Comprehensive Income (a)

Unrealized Gains

and (Losses) on

Available-for-Sale

Securities

Beginning Balance at January 28, 2023

$

(1,238)

 Other comprehensive income before 

 reclassification

519

 Amounts reclassified from accumulated

 other comprehensive income (b)

3

Net current-period other comprehensive income

522

Ending Balance at July 29, 2023

$

(716)

(a) All amounts are net-of-tax. Amounts in parentheses indicate a debit/reduction to other comprehensive income.

(b) Includes $

4

 impact of Accumulated other comprehensive income reclassifications into Interest and other 

income for net gains on available-for-sale securities. The tax impact of this reclassification was $

1

.

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS AND SIX MONTHS ENDED JULY 29, 2023 AND JULY 30, 2022

11

NOTE 3 – ACCUMULATED OTHER COMPREHENSIVE INCOME (CONTINUED):

The following table sets forth information regarding the reclassification out of Accumulated other

comprehensive income (in thousands) for the three months ended July 30, 2022:

Changes in Accumulated Other 

Comprehensive Income (a)

Unrealized Gains

and (Losses) on

Available-for-Sale

Securities

Beginning Balance at April 30, 2022

$

(1,486)

 Other comprehensive income before 

 reclassifications

64

 Amounts reclassified from accumulated

 other comprehensive income (b)

(3)

Net current-period other comprehensive income

61

Ending Balance at July 30, 2022

$

(1,425)

(a) All amounts are net-of-tax. Amounts in parentheses indicate a debit/reduction to other comprehensive income.

(b) Includes $

4

 impact of Accumulated other comprehensive income reclassifications into Interest and other 

income for net gains on available-for-sale securities. The tax impact of this reclassification was $

1

.

The following table sets forth information regarding the reclassification out of Accumulated other

comprehensive income (in thousands) for the six months ended July 30, 2022:

Changes in Accumulated Other 

Comprehensive Income (a)

Unrealized Gains

and (Losses) on

Available-for-Sale

Securities

Beginning Balance at January 29, 2022

$

(280)

 Other comprehensive income before 

 reclassifications

(1,139)

 Amounts reclassified from accumulated

 other comprehensive income (b)

(6)

Net current-period other comprehensive income

(1,145)

Ending Balance at July 30, 2022

$

(1,425)

(a) All amounts are net-of-tax. Amounts in parentheses indicate a debit/reduction to other comprehensive income.

(b) Includes $

7

 impact of Accumulated other comprehensive income reclassifications into Interest and other 

income for net gains on available-for-sale securities. The tax impact of this reclassification was $

1

.

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS AND SIX MONTHS ENDED JULY 29, 2023 AND JULY 30, 2022

12

NOTE 4 – FINANCING ARRANGEMENTS:

As of July 29, 2023, the Company has an unsecured revolving credit line, which provides for borrowings of

up to $

35.0

 million, less the balance of any revocable letters of credit related to purchase commitments, and is

committed through May 2027. The revolving credit agreement contains various financial covenants and

limitations, including the maintenance of specific financial ratios. On August 9, 2023, the Company

amended the revolving credit agreement to modify a definition used in calculating the Company’s minimum

EBITDAR coverage ratio to add back certain income tax receivables for purposes of calculating the ratio. For

the quarter ended July 29, 2023, after giving effect to the amendment, the Company was in compliance with

the credit agreement. There were

no

 borrowings outstanding,

no

r any outstanding letters of credit that

reduced borrowing availability, as of July 29, 2023. The weighted average interest rate under the credit

facility was

zero

 at July 29, 2023 due to

no

 borrowings outstanding.

NOTE 5 – REPORTABLE SEGMENT INFORMATION:

The Company has determined that it has

four

 operating segments, as defined under ASC 280-10 –

Segment

Reporting

, 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. The products sold in each retail operating segment are similar in nature, as

they all offer women’s apparel, shoes and accessories. Merchandise inventory of 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 retail operating segments is distributed to retail stores

in a similar manner through the Company’s single distribution center and is subsequently sold to customers in

a similar manner.

The Company operates its women’s fashion specialty retail stores in

31

 states as of July 29, 2023,

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.

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS AND SIX MONTHS ENDED JULY 29, 2023 AND JULY 30, 2022

13

NOTE 5 – REPORTABLE SEGMENT INFORMATION (CONTINUED):

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

Three Months Ended

Six Months Ended

July 29, 2023

Retail

Credit

Total

July 29, 2023

Retail

Credit

Total

Revenues

$182,213

$658

$182,871

Revenues

$373,648

$1,273

$374,921

Depreciation

2,509

1

2,510

Depreciation

4,866

1

4,867

Interest and other income

(1,334)

-

(1,334)

Interest and other income

(2,231)

-

(2,231)

Income before

 income taxes

2,207

253

2,460

Income before

 income taxes

8,590

439

9,029

Capital expenditures

2,300

-

2,300

Capital expenditures

8,470

-

8,470

Three Months Ended

Six Months Ended

July 30, 2022

Retail

Credit

Total

July 30, 2022

Retail

Credit

Total

Revenues

$196,314

$550

$196,864

Revenues

$402,523

$1,062

$403,585

Depreciation

2,810

1

2,811

Depreciation

5,553

1

5,554

Interest and other income

(1,884)

-

(1,884)

Interest and other income

(2,287)

-

(2,287)

Income before

 income taxes

3,289

131

3,420

Income before

 income taxes

14,903

214

15,117

Capital expenditures

5,944

-

5,944

Capital expenditures

10,384

-

10,384

Retail

Credit

Total

Total assets as of July 29, 2023

$468,923

$38,744

$507,667

Total assets as of January 28, 2023

514,609

38,531

553,140

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

Six Months Ended

July 29, 2023

July 30, 2022

July 29, 2023

July 30, 2022

Payroll

$

142

$

132

$

276

$

269

Postage

109

99

210

192

Other expenses

154

187

348

386

Total expenses

$

405

$

418

$

834

$

847

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS AND SIX MONTHS ENDED JULY 29, 2023 AND JULY 30, 2022

14

NOTE 6 – STOCK-BASED COMPENSATION:

As of July 29, 2023, the Company had two long-term compensation plans pursuant to which stock-based

compensation was outstanding or could be granted. The 2018 Incentive Compensation Plan and 2013

Incentive Compensation Plan are for the granting of various forms of equity-based awards, including

restricted stock and stock options for grant, to officers, directors and key employees. Effective May 24, 2018,

shares for grant were no longer available under the 2013 Incentive Compensation Plan.

The following table presents the number of options and shares of restricted stock initially authorized and

available for grant under each of the plans as of July 29, 2023:

2013

2018

Plan

Plan

Total

Options and/or restricted stock initially authorized

1,500,000

4,725,000

6,225,000

Options and/or restricted stock available for grant:

 July 29, 2023

-

3,095,601

3,095,601

In accordance with ASC 718 –

Compensation–Stock Compensation

, the fair value of current restricted

stock awards is estimated on the date of grant based on the market price of the Company’s stock and is

amortized to compensation expense on a straight-line basis over the related vesting periods. As of July 29,

2023 and January 28, 2023, there was $

11,597,000

 and $

10,543,000

, respectively, of total unrecognized

compensation expense related to nonvested restricted stock awards, which had a remaining weighted-

average vesting period of

2.6

 years and

2.1

 years, respectively. Total compensation expense during the

three and six months ended July 29, 2023 was $

1,230,000

 and $

2,158,000

, respectively, compared to

$

1,403,000

 and $

2,006,000

 for the three and six months ended July 30, 2022. These amounts are

classified as a component of Selling, general and administrative expenses in the Condensed Consolidated

Statements of Income (Loss) and Comprehensive Income (Loss).

The following summary shows the changes in the shares of unvested restricted stock outstanding during the

six months ended July 29, 2023:

Weighted Average

Number of

Grant Date Fair

Shares

Value Per Share

Restricted stock awards at January 28, 2023

1,059,433

$

13.10

Granted

407,808

8.30

Vested

(217,238)

13.97

Forfeited or expired

(74,338)

12.28

Restricted stock awards at July 29, 2023

1,175,665

$

11.33

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS AND SIX MONTHS ENDED JULY 29, 2023 AND JULY 30, 2022

15

NOTE 6 – STOCK BASED-COMPENSATION (CONTINUED):

The Company’s Employee Stock Purchase Plan allows eligible full-time employees to purchase a limited

number of shares of the Company’s Class A Common Stock during each semi-annual offering period at a

15

% discount through payroll deductions. During the six months ended July 29, 2023 and July 30, 2022, the

Company sold

26,127

 and

12,196

 shares to employees at an average discount of $

1.31

 and $

2.12

 per share,

respectively, under the Employee Stock Purchase Plan. The compensation expense recognized for the

15

%

discount given under the Employee Stock Purchase Plan was approximately $

34,000

 and $

26,000

 for the six

months ended July 29, 2023 and July 30, 2022, respectively. These expenses are classified as a component of

Selling, general and administrative expenses.

NOTE 7 – FAIR VALUE MEASUREMENTS:

The following tables set forth information regarding the Company’s financial assets and liabilities that are

measured at fair value (in thousands) as of July 29, 2023 and January 28, 2023:

Quoted

Prices in

Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

July 29, 2023

Assets

Inputs

Inputs

Description

Level 1

Level 2

Level 3

Assets:

 State/Municipal Bonds

$

19,367

$

-

$

19,367

$

-

 Corporate Bonds

30,026

-

30,026

-

 U.S. Treasury/Agencies Notes and Bonds

21,073

-

21,073

-

 Cash Surrender Value of Life Insurance

9,524

-

-

9,524

 Asset-backed Securities (ABS)

6,108

-

6,108

-

 Corporate Equities

852

852

-

-

 Commercial Paper

648

-

648

-

Total Assets

$

87,598

$

852

$

77,222

$

9,524

Liabilities:

 Deferred Compensation

$

(8,724)

$

-

$

-

$

(8,724)

Total Liabilities

$

(8,724)

$

-

$

-

$

(8,724)

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS AND SIX MONTHS ENDED JULY 29, 2023 AND JULY 30, 2022

16

Quoted

Prices in

Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

January 28, 2023

Assets

Inputs

Inputs

Description

Level 1

Level 2

Level 3

Assets:

 State/Municipal Bonds

$

23,102

$

-

$

23,102

$

-

 Corporate Bonds

47,901

-

47,901

-

 U.S. Treasury/Agencies Notes and Bonds

27,250

-

27,250

-

 Cash Surrender Value of Life Insurance

9,274

-

-

9,274

 Asset-backed Securities (ABS)

9,373

-

9,373

-

 Corporate Equities

923

923

-

-

 Commercial Paper

1,026

-

1,026

-

Total Assets

$

118,849

$

923

$

108,652

$

9,274

Liabilities:

 Deferred Compensation

$

(8,903)

$

-

$

-

$

(8,903)

Total Liabilities

$

(8,903)

$

-

$

-

$

(8,903)

The Company’s investment portfolio was primarily invested in corporate bonds and tax-exempt and taxable

governmental debt securities held in managed accounts with underlying ratings of A or better at July 29, 2023

and January 28, 2023. The state, municipal and corporate bonds have contractual maturities which range

from

one day

 to

2.6

 years. The U.S. Treasury Notes have contractual maturities which range from

two days

 to

2.6

 years. These securities are classified as available-for-sale and are recorded as Short-term investments,

Restricted cash and Other assets on the accompanying Condensed Consolidated Balance Sheets. These assets

are carried at fair value with unrealized gains and losses reported net of taxes in Accumulated other

comprehensive income. The asset-backed securities are bonds comprised of auto loans and bank credit cards

that carry AAA ratings. The auto loan asset-backed securities are backed by static pools of auto loans that

were originated and serviced by captive auto finance units, banks or finance companies. The bank credit card

asset-backed securities are backed by revolving pools of credit card receivables generated by account holders

of cards from American Express, Citibank, JPMorgan Chase, Capital One and Discover.

Additionally, at July 29, 2023, the Company had $

0.9

 million of corporate equities and deferred

compensation plan assets of $

9.5

 million. At January 28, 2023, the Company had $

0.9

 million of corporate

equities and deferred compensation plan assets of $

9.3

 million. All of these assets are recorded within Other

assets in the Condensed Consolidated Balance Sheets.

Level 1 securities are measured at fair value using quoted active market prices. Level 2 investment securities

include corporate bonds, municipal bonds and asset-backed securities for which quoted prices may not be

available on active exchanges for identical instruments. Their fair value is principally based on market values

determined by management with assistance of a third-party pricing service. Since quoted prices in active

markets for identical assets are not available, these prices are determined by the pricing service using

observable market information such as quotes from less active markets and/or quoted prices of securities with

similar characteristics, among other factors.

Deferred compensation plan assets consist of life insurance policies. These life insurance policies are valued

based on the cash surrender value of the insurance contract, which is determined based on such factors as the

fair value of the underlying assets and discounted cash flow and are therefore classified within Level 3 of the

valuation hierarchy. The Level 3 liability associated with the life insurance policies represents a deferred

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS AND SIX MONTHS ENDED JULY 29, 2023 AND JULY 30, 2022

17

compensation obligation, the value of which is tracked via underlying insurance funds’ net asset values, as

recorded in Other noncurrent liabilities in the Condensed Consolidated Balance Sheet. These funds are

designed to mirror mutual funds and money market funds that are observable and actively traded.

The following tables summarize the change in fair value of the Company’s financial assets and liabilities

measured using Level 3 inputs for the six months ended July 29, 2023 and the year ended January 28, 2023

(in thousands):

Fair Value

Measurements Using

Significant Unobservable

Asset Inputs (Level 3)

Cash Surrender Value

Beginning Balance at January 28, 2023

$

9,274

Redemptions

-

Additions

-

Total gains or (losses):

 Included in interest and other income (or

changes in net assets)

250

 Included in other comprehensive income

-

Ending Balance at July 29, 2023

$

9,524

Fair Value

Measurements Using

Significant Unobservable

Liability Inputs (Level 3)

Deferred Compensation

Beginning Balance at January 28, 2023

$

(8,903)

 Redemptions

646

 Additions

(162)

 Total (gains) or losses:

 Included in interest and other income (or

changes in net assets)

(305)

 Included in other comprehensive income

-

Ending Balance at July 29, 2023

$

(8,724)

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS AND SIX MONTHS ENDED JULY 29, 2023 AND JULY 30, 2022

18

Fair Value

Measurements Using

Significant Unobservable

Asset Inputs (Level 3)

Cash Surrender Value

Beginning Balance at January 29, 2022

$

11,472

Redemptions

(1,718)

Additions

-

Total gains or (losses):

 Included in interest and other income (or

changes in net assets)

(480)

 Included in other comprehensive income

-

Ending Balance at January 28, 2023

$

9,274

Fair Value

Measurements Using

Significant Unobservable

Liability Inputs (Level 3)

Deferred Compensation

Beginning Balance at January 29, 2022

$

(10,020)

 Redemptions

1,142

 Additions

(379)

 Total (gains) or losses:

 Included in interest and other income (or

changes in net assets)

354

 Included in other comprehensive income

-

Ending Balance at January 28, 2023

$

(8,903)

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS AND SIX MONTHS ENDED JULY 29, 2023 AND JULY 30, 2022

19

NOTE 8 – RECENT ACCOUNTING PRONOUNCEMENTS:

The Company has reviewed recent accounting pronouncements and believe none will have a material

impact on the Company’s financial statements.

NOTE 9 – INCOME TAXES:

The Company had an effective tax rate for the first six months of 2023 of

38.5

% compared to

50.6

% for

the first six months of 2022. The change in the effective tax rate for the first six months of 2023 compared

to the prior year was primarily due to a decrease in Global Intangible Low-taxed Income (GILTI), state

income taxes, non-deductible officer’s compensation, and increases in foreign tax credits and employment

credits, partially offset by the foreign rate differential.

NOTE 10 – COMMITMENTS AND CONTINGENCIES:

The Company is, from time to time, involved in routine litigation incidental to the conduct of its business,

including litigation regarding the merchandise that it sells, litigation regarding intellectual property,

litigation instituted by persons injured upon premises under its control, litigation with respect to various

employment matters, including alleged discrimination and wage and hour litigation, and litigation with

present or former employees.

Although such litigation is routine and incidental to the conduct of the Company’s business, as with any

business of its size with a significant number of employees and significant merchandise sales, such

litigation could result in large monetary awards. Based on information currently available, management

does not believe that any reasonably possible losses arising from current pending litigation will have a

material adverse effect on the Company’s condensed consolidated financial statements. However, given

the inherent uncertainties involved in such matters, an adverse outcome in one or more of such matters

could materially and adversely affect the Company’s financial condition, results of operations and cash

flows in any particular reporting period. The Company accrues for these matters when the liability is

deemed probable and reasonably estimable.

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. Layaway sales

are recorded as deferred revenue until the customer takes possession of, or forfeits, the merchandise. Gift

cards do not have expiration dates. 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

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS AND SIX MONTHS ENDED JULY 29, 2023 AND JULY 30, 2022

20

and six months ended July 29, 2023, the Company estimated customer credit losses of $

151,000

 and

$

272,000

, respectively, compared to $

87,000

 and $

173,000

 for the three and six months ended July 30,

2022, respectively. Sales purchased on the Company’s proprietary credit card for the three and six

months ended July 29, 2023 were $

5.9

 million and $

11.7

 million, respectively, compared to $

5.8

 million

and $

11.5

 million for the three and six months ended July 30, 2022, respectively.

The following table provides information about receivables and contract liabilities from contracts with

customers (in thousands):

Balance as of

July 29, 2023

January 28, 2023

Proprietary Credit Card Receivables, net

$

10,737

$

10,553

Gift Card Liability

$

6,924

$

8,523

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS AND SIX MONTHS ENDED JULY 29, 2023 AND JULY 30, 2022

21

NOTE 12 – LEASES:

The Company determines whether an arrangement is a lease at inception. The Company has operating

leases for stores, offices, warehouse space and equipment. Its leases have remaining lease terms of up to

10

 years based on the estimated likelihood of renewal. Some include options to extend the lease term for

up to

five years

, and some include options to terminate the lease

within one year

. The Company considers

these options in determining the lease term used to establish its right-of-use assets and lease liabilities.

The Company’s lease agreements do not contain any material residual value guarantees or material

restrictive covenants.

As most of the Company’s leases do not provide an implicit rate, the Company uses its estimated

incremental borrowing rate based on the information available at commencement date of the lease in

determining the present value of lease payments.

The components of lease cost are shown below (in thousands):

Three Months Ended

July 29, 2023

July 30, 2022

Operating lease cost (a)

$

17,597

$

17,847

Variable lease cost (b)

$

504

$

578

(a) Includes right-of-use asset amortization of ($

0.3

) million and ($

0.5

) million for the three months ended July 29, 2023 and July 30,

2022, respectively.

(b) Primarily related to monthly percentage rent for stores not presented on the condensed consolidated balance sheets.

Six Months Ended

July 29, 2023

July 30, 2022

Operating lease cost (a)

$

35,675

$

35,602

Variable lease cost (b)

$

1,098

$

1,346

(a) Includes right-of-use asset amortization of ($

0.6

) million and ($

0.9

) million for the six months ended July 29, 2023 and July 30,

2022, respectively.

(b) Primarily related to monthly percentage rent for stores not presented on the condensed consolidated balance sheets.

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE THREE MONTHS AND SIX MONTHS ENDED JULY 29, 2023 AND JULY 30, 2022

22

Supplemental cash flow information and non-cash activity related to the Company’s operating leases are

as follows (in thousands):

Operating cash flow information:

Three Months Ended

July 29, 2023

July 30, 2022

Cash paid for amounts included in the measurement of lease liabilities

$

16,679

$

17,038

Non-cash activity:

Right-of-use assets obtained in exchange for lease obligations

$

999

$

2,534

Six Months Ended

July 29, 2023

July 30, 2022

Cash paid for amounts included in the measurement of lease liabilities

$

34,024

$

33,874

Non-cash activity:

Right-of-use assets obtained in exchange for lease obligations

$

2,903

$

6,049

Weighted-average remaining lease term and discount rate for the Company’s operating leases are as

follows:

As of

July 29, 2023

July 30, 2022

Weighted-average remaining lease term

2.0

 years

2.2

 years

Weighted-average discount rate

3.26%

2.89%

Maturities of lease liabilities by fiscal year for the Company’s operating leases are as follows (in

thousands):

Fiscal Year

2023 (a)

$

33,897

2024

49,250

2025

32,219

2026

19,094

2027

8,991

Thereafter

1,748

Total lease payments

145,199

Less: Imputed interest

7,378

Present value of lease liabilities

$

137,821

(a) Excluding the six months ended July 29, 2023

23

THE CATO CORPORATION

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS

FORWARD-LOOKING INFORMATION:

The following information should be read along with the unaudited Condensed Consolidated Financial

Statements, including the accompanying Notes appearing in this report. Any of the following are

“forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as

amended, and Section 21E of the Securities Exchange Act of 1934, as amended: (1) statements in this

Form 10-Q that reflect projections or expectations of our future financial or economic performance;

(2) statements that are not historical information; (3) statements of our beliefs, intentions, plans and

objectives for future operations, including those contained in “Management’s Discussion and Analysis of

Financial Condition and Results of Operations”; (4) statements relating to our operations or activities for

our fiscal year ending February 3, 2024 (“fiscal 2023”) and beyond, including, but not limited to,

statements regarding expected amounts of capital expenditures and store openings, relocations, remodels

and closures and statements regarding the potential impact of the COVID-19 pandemic and related

responses and mitigation efforts, as well as the potential impact of supply chain disruptions, inflationary

pressures and other economic or market conditions on our business, results of operations and financial

condition and statements regarding new store development strategy; and (5) statements relating to our

future contingencies. When possible, we have attempted to identify forward-looking statements by using

words such as “will,” “expects,” “anticipates,” “approximates,” “believes,” “estimates,” “hopes,”

“intends,” “may,” “plans,” “could,” “would,” “should” and any variations or negative formations of such

words and similar expressions. 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. Forward-looking

statements included in this report are based on information available to us as of the filing date of this

report, but 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, the availability of credit and

inflation; changes in laws, regulations or government 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 to grow

and perform as expected; adverse weather, public health threats (including the global 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; adverse

developments or volatility affecting the financial services industry or broader financial markets; and other

factors discussed under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the

fiscal year ended January 28, 2023 (“fiscal 2022”), as amended or supplemented, and in other reports we

file with or furnish to the Securities and Exchange Commission (“SEC”) from time to time. We do not

undertake, and expressly decline, any obligation to update any such forward-looking information

contained in this report, whether as a result of new information, future events, or otherwise.

THE CATO CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

24

CRITICAL ACCOUNTING POLICIES AND ESTIMATES:

The Company’s accounting policies are more fully described in “Management’s Discussion and Analysis of

Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for the fiscal

year ended January 28, 2023. As disclosed in “Management’s Discussion and Analysis of Financial

Condition and Results of Operations,” the preparation of the Company’s financial statements in conformity

with generally accepted accounting principles in the United States (“GAAP”) requires management to make

estimates and assumptions about future events that affect the amounts reported in the financial statements and

accompanying notes. Future events and their effects cannot be determined with absolute certainty. Therefore,

the determination of estimates requires the exercise of judgment. Actual results inevitably will differ from

those estimates, and such differences may be material to the financial statements. The most significant

accounting estimates inherent in the preparation of the Company’s financial statements include the

calculation of potential asset impairment, reserves relating to self-insured health insurance, workers’

compensation, general and auto insurance liabilities, uncertain tax positions, the allowance for customer

credit losses, and inventory shrinkage.

The Company’s critical accounting policies and estimates are discussed with the Audit Committee.

THE CATO CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

25

RESULTS OF OPERATIONS:

The following table sets forth, for the periods indicated, certain items in the Company's unaudited Condensed

Consolidated Statements of Income as a percentage of total retail sales:

Three Months Ended

Six Months Ended

July 29, 2023

July 30, 2022

July 29, 2023

July 30, 2022

Total retail sales

100.0

%

100.0

%

100.0

%

100.0

%

Other revenue

0.9

1.0

0.9

0.9

Total revenues

100.9

101.0

100.9

100.9

Cost of goods sold (exclusive of depreciation)

64.9

67.6

64.5

66.0

Selling, general and administrative (exclusive

of depreciation)

34.0

31.2

33.3

30.3

Depreciation

1.4

1.4

1.3

1.4

Interest and other income

(0.7)

(1.0)

(0.6)

(0.6)

Income before income taxes

1.4

1.8

2.4

3.8

Net income (loss)

0.6

(1.2)

1.5

1.9

THE CATO CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

26

RESULTS OF OPERATIONS (CONTINUED):

Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is

intended to provide information to assist readers in better understanding and evaluating our financial

condition and results of operations. We recommend reading this MD&A in conjunction with our Condensed

Consolidated Financial Statements and the Notes to those statements included in the “Financial Statements”

section of this Quarterly Report on Form 10-Q, as well as our 2022 Annual Report Form 10-K.

Recent Developments

Inflationary Cost Pressure and Rising Interest Rates

Despite some reduction in inflationary pressures from last year, Cato’s operating costs, including higher

wages, operating supplies, and service costs continue to be negatively impacted by the current inflationary

environment. In addition, our customers’ disposable income is impacted by increased costs related to

fuel, food, and housing, including rent, as well as other consumable products across the economy which,

in part, negatively impact our customers’ willingness to purchase discretionary items such as apparel,

jewelry and shoes.

In response to inflationary pressures, the Federal Reserve began raising and is committed to continue

raising interest rates until inflationary pressures subside to acceptable levels. These rising interest rates

have adversely affected the availability and cost of credit for both businesses and our customers.

Increasing costs related to revolving credit, auto loans and mortgages continue to have a negative impact

on our customers’ discretionary income. Our customers’ willingness to purchase our products may

continue to be negatively impacted by high interest rates.

We believe high prices and interest rates impacted the first half of fiscal 2023 and will likely continue to

have a negative impact on consumer behavior and, by extension, our results of operations and financial

condition during the remainder of fiscal 2023.

Comparison of the Three and Six Months ended July 29, 2023 with July 30, 2022

Total retail sales for the second quarter were $181.2 million compared to last year’s second quarter sales of

$195.0 million, a 7% decrease. The Company’s sales decrease in the second quarter of fiscal 2023 is

primarily due to a 5% decrease in same-store sales and permanently closed stores, partially offset by sales

from new stores. For the six months ended July 29, 2023, total retail sales were $371.5 million compared to

last year’s comparable six month sales of $399.9 million, a 7% decrease. The decrease in sales in the first six

months of fiscal 2023 was also due primarily to a 5% decrease in same-store sales and permanently closed

stores, partially offset by sales from new stores. Same-store sales include stores that have been open more

than 15 months. Stores that have been relocated or expanded are also included in the same-store sales

calculation after they have been open more than 15 months. The method of calculating same-store sales

varies across the retail industry. As a result, our same-store sales calculation may not be comparable to

similarly titled measures reported by other companies. E-commerce sales were less than 5% of total sales for

the six months ended July 29, 2023 and are included in the same-store sales calculation. Total revenues,

comprised of retail sales and other revenue (principally finance charges and late fees on customer accounts

receivable and layaway fees), were $182.9 million and $374.9 million for the three and six months ended July

29, 2023, compared to $196.9 million and $403.6 million for the three and six months ended July 30, 2022,

respectively. The Company operated 1,247 stores at July 29, 2023 compared to 1,312 stores at the end of last

THE CATO CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

27

year’s second quarter. During the first six months of fiscal 2023, the Company opened eight stores and

closed 41 stores. The Company currently expects to close approximately 80 stores in total in fiscal 2023.

Credit revenue of $0.7 million represented 0.4% of total revenues in the second quarter of fiscal 2023,

compared to 2022 credit revenue of $0.6 million or 0.3% of total revenues. Credit revenue is comprised of

interest earned on the Company’s private label credit card portfolio and related fee income. Related expenses

principally include payroll, postage and other administrative expenses and totaled $0.4 million in the second

quarter of fiscal 2023, compared to last year’s second quarter expense of $0.4 million.

Other revenue, a component of total revenues, was $1.7 million and $3.4 million for the three and six months

ended July 29, 2023, respectively, compared to $1.9 million and $3.6 million for the prior year’s comparable

three and six month periods. The decrease in Other revenue for both the three and six months is due to a

decrease in gift card breakage and e-commerce shipping revenue partially offset by increases in finance

charges and late fees associated with the Company’s proprietary credit card.

Cost of goods sold was $117.6 million, or 64.9% of retail sales and $239.7 million, or 64.5% of retail sales

for the three and six months ended July 29, 2023, respectively, compared to $131.7 million, or 67.6% of retail

sales and $264.0 million, or 66.0% of retail sales for the comparable three and six month periods of fiscal

2022. The overall decrease in cost of goods sold as a percent of retail sales for the second quarter and first

half of fiscal 2023 resulted primarily from both lower ocean freight costs and outbound freight costs to our

stores, partially offset by deleveraging of occupancy and buying costs. Cost of goods sold includes

merchandise costs (net of discounts and allowances), buying costs, distribution costs, occupancy costs, freight

and inventory shrinkage. Net merchandise costs and in-bound freight are capitalized as inventory costs. 

Buying and distribution costs include payroll, payroll-related costs and operating expenses for the buying

departments and distribution center. Occupancy costs include rent, real estate taxes, insurance, common area

maintenance, utilities and maintenance for stores and distribution facilities. Total gross margin dollars (retail

sales less cost of goods sold exclusive of depreciation) increased by 0.5% to $63.6 million for the second

quarter of fiscal 2023 and decreased by 3.0% to $131.8 million for the first six months of fiscal 2023,

compared to $63.3 million and $135.9 million for the prior year’s comparable three and six months of fiscal

2022. Gross margin as presented may not be comparable to those of other entities.

Selling, general and administrative expenses (“SG&A”) primarily include corporate and store payroll, related

payroll taxes and benefits, insurance, supplies, advertising, bank and credit card processing fees. SG&A

expenses were $61.6 million, or 34.0% of retail sales and $123.6 million, or 33.3% of retail sales for the

second quarter and first six months of fiscal 2023, respectively, compared to $60.8 million, or 31.2% of retail

sales and $121.2 million, or 30.3% of retail sales for the prior year’s comparable three and six month periods. 

The increase in SG&A for the second quarter and first six months of fiscal 2023 is primarily due to higher

payroll and insurance expense.

Depreciation expense was $2.5 million, or 1.4% of retail sales and $4.9 million, or 1.3% of retail sales for the

second quarter and first six months of fiscal 2023, respectively, compared to $2.8 million, or 1.4% of retail

sales and $5.6 million or 1.4% of retail sales for the comparable three and six month periods of fiscal 2022,

respectively. 

Interest and other income was $1.3 million, or 0.7% of retail sales and $2.2 million, or 0.6% of retail sales for

the three and six months ended July 29, 2023, respectively, compared to $1.9 million, or 1.0% of retail sales

and $2.3 million, or 0.6% of retail sales for the comparable three and six month periods of fiscal 2022,

respectively. The decrease for the second quarter and first six months of fiscal 2023 compared to fiscal 2022

THE CATO CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

28

is primarily attributable to the Company’s receipt of insurance proceeds in the second quarter of fiscal 2022

related to hurricane damage in 2021.

Income tax expense was $1.3 million and $3.5 million for the second quarter and first six months of fiscal

2023, respectively, compared to $5.7 million and $7.6 million for the comparable three and six month

periods of fiscal 2022, respectively. For the first six months of fiscal 2023, the Company’s effective tax

rate was 38.5% compared to 50.6% for the first six months of fiscal 2022. The change in the 2023 year-

to-date effective tax rate was primarily due to a decrease in Global Intangible Low-taxed Income (GILTI),

state income taxes, non-deductible officer’s compensation, and increases in foreign tax credits and

employment credits, partially offset by the foreign rate differential. 

LIQUIDITY, CAPITAL RESOURCES AND MARKET RISK: 

The Company believes that its cash, cash equivalents and short-term investments, together with cash flows

from operations and borrowings available under its revolving credit agreement, will be adequate to fund the

Company’s regular operating requirements and expected capital expenditures for fiscal 2023 and the next 12

months.

Cash provided by operating activities during the first six months of fiscal 2023 was $21.6 million as

compared to $17.0 million provided in the first six months of fiscal 2022. Cash provided by operating

activities for the first six months of fiscal 2023 was primarily generated by earnings adjusted for depreciation

and changes in working capital. The increase in cash provided of $4.6 million for the first six months of fiscal

2023 as compared to the first six months of fiscal 2022 was primarily due to a smaller decrease in accounts

payable and accrued liabilities from the fiscal year end and lower inventory, partially offset by higher

accounts receivable and lower net income.

At July 29, 2023, the Company had working capital of $103.4 million compared to $74.7 million at January

28, 2023.

The increase in working capital is primarily attributable to a decrease in current lease liability and

an increase in cash, partially offset by a decrease in inventory and short-term investments.

As of July 29, 2023, the Company has an unsecured revolving credit line, which provides for borrowings of

up to $35.0 million, less the balance of any revocable letters of credit related to purchase commitments, and is

committed through May 2027. The revolving credit agreement contains various financial covenants and

limitations, including the maintenance of specific financial ratios. On August 9, 2023, the Company

amended the revolving credit agreement to modify a definition used in calculating the Company’s minimum

EBITDAR coverage ratio to add back certain income tax receivables for purposes of calculating the ratio. For

the quarter ended July 29, 2023, after giving effect to the amendment, the Company was in compliance with

the credit agreement. There were no borrowings outstanding, nor any outstanding letters of credit that

reduced borrowing availability, as of July 29, 2023. The weighted average interest rate under the credit

facility was zero at July 29, 2023 due to no borrowings outstanding.

Expenditures for property and equipment totaled $8.5 million in the first six months of fiscal 2023, compared

to $10.4 million in last fiscal year’s first six months. The decrease in expenditures for property and equipment

was primarily due to finishing projects related to investments in the distribution center and information

technology. For the full fiscal 2023 year, the Company expects to invest approximately $17.0 million for

capital expenditures.

THE CATO CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

29

Net cash provided by investing activities totaled $23.8 million in the first six months of fiscal 2023 compared

to $10.1 million net cash provided in the comparable period of 2022. The increase in net cash provided in

2023 was primarily due to a net decrease in the purchase of short-term investments and a decrease in capital

expenditures.

Net cash used in financing activities totaled $9.3 million in the first six months of fiscal 2023 compared to

$16.7 million used in the comparable period of fiscal 2022. The decrease in net cash used in fiscal 2023 was

primarily due to lower stock repurchases and lower dividends.

As of July 29, 2023, the Company had 909,653 shares remaining in open authorizations under its share

repurchase program. 

The Company does not use derivative financial instruments.

The Company’s investment portfolio was primarily invested in corporate bonds and tax-exempt and taxable

governmental debt securities held in managed accounts with underlying ratings of A or better at July 29, 2023

and January 28, 2023. The state, municipal and corporate bonds have contractual maturities which range

from one day to 2.6 years. The U.S. Treasury Notes have contractual maturities which range from two days to

2.6 years. These securities are classified as available-for-sale and are recorded as Short-term investments,

Restricted cash and Other assets on the accompanying Condensed Consolidated Balance Sheets. These assets

are carried at fair value with unrealized gains and losses reported net of taxes in Accumulated other

comprehensive income. The asset-backed securities are bonds comprised of auto loans and bank credit cards

that carry AAA ratings. The auto loan asset-backed securities are backed by static pools of auto loans that

were originated and serviced by captive auto finance units, banks or finance companies. The bank credit card

asset-backed securities are backed by revolving pools of credit card receivables generated by account holders

of cards from American Express, Citibank, JPMorgan Chase, Capital One and Discover.

Additionally, at July 29, 2023, the Company had $0.9 million of corporate equities and deferred

compensation plan assets of $9.5 million. At January 28, 2023, the Company had $0.9 million of corporate

equities and deferred compensation plan assets of $9.3 million. All of these assets are recorded within Other

assets in the Condensed Consolidated Balance Sheets. See Note 7, Fair Value Measurements.

RECENT ACCOUNTING PRONOUNCEMENTS: 

See Note 8, Recent Accounting Pronouncements.

THE CATO CORPORATION

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

30

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK:

The Company is subject to market rate risk from exposure to changes in interest rates based on its

financing, investing and cash management activities, but the Company does not believe such exposure is

material.

ITEM 4. CONTROLS AND PROCEDURES:

We carried out an evaluation, with the participation of our Principal Executive Officer and Principal Financial

Officer, of the effectiveness of our disclosure controls and procedures as of July 29, 2023. Based on this

evaluation, our Principal Executive Officer and Principal Financial Officer concluded that, as of July 29,

2023, our disclosure controls and procedures, as defined in Rule 13a-15(e), under the Securities Exchange

Act of 1934 (the “Exchange Act”), were effective to ensure that information we are required to disclose in the

reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported

within the time periods specified in the SEC’s rules and forms and that such information is accumulated and

communicated to our management, including our Principal Executive Officer and Principal Financial Officer,

as appropriate to allow timely decisions regarding required disclosure.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING:

No change in the Company’s internal control over financial reporting (as defined in Exchange Act Rule 13a-

15(f)) has occurred during the Company’s fiscal quarter ended July 29, 2023 that has materially affected, or is

reasonably likely to materially affect, the Company’s internal control over financial reporting.

THE CATO CORPORATION

PART II OTHER INFORMATION

31

ITEM 1. LEGAL PROCEEDINGS:

Not Applicable.

ITEM 1A. RISK FACTORS:

In addition to the other information in this report, you should carefully consider the factors discussed in Part I,

“Item 1A. Risk Factors” in our Annual Report on Form 10-K for our fiscal year ended January 28, 2023.

These risks could materially affect our business, financial condition or future results; however, they are not

the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem

to be immaterial may also materially adversely affect our business, financial condition or results of

operations.

THE CATO CORPORATION

PART II OTHER INFORMATION

32

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS:

The following table summarizes the Company’s purchases of its common stock for the three months

ended July 29, 2023:

ISSUER PURCHASES OF EQUITY SECURITIES

Total Number of

Maximum Number

Shares Purchased as

(or Approximate Dollar

Total Number

Average

Part of Publicly

Value) of Shares that may

Fiscal

of Shares

Price Paid

Announced Plans or

Yet be Purchased Under

Period

Purchased

per Share (1)

Programs (2)

The Plans or Programs (2)

May 2023

34,726

$

8.30

34,726

June 2023

-

-

-

July 2023

-

-

-

Total

34,726

$

8.30

34,726

909,653

(1)

Prices include trading costs.

(2)

As of April 29, 2023, the Company’s share repurchase program had 944,379 shares remaining in

open authorizations. During the second quarter ended July 29, 2023, the Company repurchased

and retired 34,726 shares under this program for approximately $288,226 or an average market

price of $8.30 per share. As of July 29, 2023, the Company had 909,653 shares remaining in

open authorizations. There is no specified expiration date for the Company’s repurchase program.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES:

Not Applicable.

THE CATO CORPORATION

PART II OTHER INFORMATION

33

ITEM 4. MINE SAFETY DISCLOSURES:

Not Applicable.

ITEM 5. OTHER INFORMATION:

During the three months ended July 29, 2023, none of the Company’s directors or officers (as defined in

Rule 16a-1(f) of the Securities Exchange Act of 1934, as amended) adopted or terminated a “Rule 10b5-1

trading arrangement” or a “non-Rule 10b5-1 trading arrangement” (as such terms are defined in Item 408

of Regulation S-K).

ITEM 6. EXHIBITS:

Exhibit No.

Item

 3.1

Registrant’s Amended and Restated Certificate of Incorporation, incorporated by

reference to Exhibit 3.1 to Form 10-Q of the Registrant for the quarter ended May

2, 2020.

 3.2

Registrant’s Amended and Restated By-Laws, incorporated by reference to Exhibit

3.2 to Form 10-Q of the Registrant for the quarter ended May 2, 2020.

10.1*

Second Amendment, dated as of August 9, 2023, to Credit Agreement, dated as

of May 19 2022, among the Registrant, the party hereto, the banks party thereto

and Wells Fargo Bank, National Association.

 31.1*

Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer.

 31.2*

Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer.

 32.1*

Section 1350 Certification of Principal Executive Officer.

 32.2*

Section 1350 Certification of Principal Financial Officer.

101.1*

The following materials from Registrant’s Quarterly Report on Form 10-Q for the

fiscal quarter ended July 29, 2023, formatted in Inline XBRL: (i) Condensed

Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) for

the Three Months and Six Months Ended July 29, 2023 and July 30, 2022; (ii)

Condensed Consolidated Balance Sheets at July 29, 2023 and January 28, 2023; 

(iii) Condensed Consolidated Statements of Cash Flows for the Six Months Ended

July 29, 2023 and July 30, 2022; (iv) Condensed Consolidated Statements of

Stockholders’ Equity for the Six Months Ended July 29, 2023 and July 30, 2022;

and (v) Notes to Condensed Consolidated Financial Statements.

104.1

Cover Page Interactive Data File (Formatted in Inline XBRL and contained in

the Interactive Data Files submitted as Exhibit 101.1*)

 * Submitted electronically herewith. 

THE CATO CORPORATION

PART II OTHER INFORMATION

34

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this

report to be signed on its behalf by the undersigned thereunto duly authorized.

 THE CATO CORPORATION

August 23, 2023

/s/ John P. D. Cato

Date

John P. D. Cato

Chairman, President and

Chief Executive Officer

August 23, 2023

/s/ Charles D. Knight

Date

Charles D. Knight

Executive Vice President

Chief Financial Officer

EX-10.1

1

Execution

Version

SECOND

AMENDMENT

TO CREDIT

AGREEMENT

THIS SECOND AMENDMENT TO CREDIT AGREEMENT

(this “Amendment”), dated

as of August 9, 2023, is by and among THE CATO CORPORATION, a Delaware corporation (the

“Borrower”), the Banks (as defined below) party hereto and WELLS FARGO BANK, NATIONAL

ASSOCIATION, as agent on behalf of the Banks under the Credit Agreement (as hereinafter defined)

(in such capacity, the “Agent”). Capitalized terms used herein and not otherwise defined herein shall

have the meanings ascribed thereto in the Credit Agreement.

W I T N E S S E T

H

WHEREAS

, the Borrower, certain Domestic Subsidiaries of the Borrower as may be from time

to time party thereto, certain banks and financial

institutions

from time to time party thereto (the “Banks”)

and the Agent are parties to that certain Credit Agreement dated as of May 19, 2022 (as amended by that

certain First Amendment to Credit Agreement, dated as of June 6, 2022, and as further amended,

modified, extended, restated, replaced, or supplemented from time to time, the “Credit Agreement”);

WHEREAS

, the Borrower has requested that the Required Banks and Agent amend certain

provisions of the Credit Agreement; and

WHEREAS

, the Required Banks and the Agent are willing to make such amendments to the

Credit Agreement, in accordance with and subject to the terms and conditions set forth herein.

NOW, THEREFORE

, in consideration of the agreements hereinafter set forth, and for other

good and valuable

consideration,

the receipt and adequacy of which are hereby

acknowledged,

the parties

hereto agree as follows:

ARTICLE

IAMENDMENTS

TO CREDIT

AGREEMENT

1.1 Amendment to Definition of EBITDAR

. The definition of EBITDAR set forth in

Section 1.01 of the Credit Agreement is hereby amended by changing the second clause “(a)” to clause

“(b)”.

1.2 Amendment to Definition of Minimum EBITDAR Coverage Ratio

. The definition

of Minimum EBITDAR Coverage Ratio set forth in Section 1.01 of the Credit Agreement is hereby

amended and restated in its entirety to read as follows:

“Minimum EBITDAR Coverage Ratio” means, as of the end of any Fiscal Quarter, the

ratio of (i) EBITDAR for the four-Fiscal Quarter period then ended, minus (a) Taxes paid in

Cash for such four-Fiscal Quarter period, plus (b) following the date the financial statements

are delivered pursuant to Section 5.01 for the Fiscal Quarter ended July 29,2023 and without

duplication of any amounts set forth in clause (b)(ii) of the definition of EBITDAR, the amount

of income tax returns anticipated by the Borrower in good faith to be received from the Internal

Revenue Service after August 1, 2023 in connection with taxes paid during the 2021 Fiscal Year

(the “Income Tax Receivables”); provided, that (A) the amount added back pursuant to this

clause (b) shall not exceed the lesser of (x) $5,325,000 and (y) the actual amount of Income Tax

2

Receivables received from the Internal Revenue Service and (B) the addback set forth in this

clause (b) shall no longer be available from and after the earlier of (I) receipt by the Borrower

of any Income Tax Receivables from the Internal Revenue Service and (II) any reporting period

2

following the end of the Fiscal Year ending February 3, 2024, to (ii) the Fixed Charges for

such four-Fiscal Quarter period.

ARTICLE II

CONDITIONS TOEFFECTIVENESS

This Amendment shall become effective as of the day and year set forth above (the

“Second Amendment Effective Date”) when the Agent shall have received a copy of this Amendment

duly executed by each of the Borrower, the Required Banks and the Agent.

ARTICLE

III MISCELLANEOUS

3.1 Amended

Te

rms.

On and after the Second Amendment Effective Date, all

references to the Credit Agreement in each of the Loan Documents shall hereafter mean the Credit

Agreement as amended by this Amendment. Except as specifically amended hereby or otherwise

agreed, the Credit Agreement is hereby ratified and confirmed and shall remain in full force and

effect according to its terms.

3.2 Reaffirmation of Obligations.

The Borrower hereby ratifies the Credit Agreement

as amended by this Amendment and acknowledges and reaffirms (a) that it is bound by all terms of

the Credit Agreement as so amended applicable to it and (b) that it is responsible for the observance

and full performance of its Obligations.

3.3 Loan Document.

This Amendment shall constitute a Loan Document under the

terms of the Credit Agreement.

3.4 Further Assurances. 

The Borrower agrees to promptly take such action, upon

the request of the Agent, as is necessary to carry out the intent of this Amendment.

3.5 Entirety. 

This Amendment and the other Loan Documents embody the 

entire agreement among the parties hereto relating to the subject matter hereof and thereof and

supersede all previous documents, agreements and

understandings,

oral or written, relating to the

subject matter hereof and thereof.

3.6 Counterparts; Telecopy.

This Amendment may be executed in counterparts (and

by different parties hereto in different counterparts), each of which when so executed and delivered

will constitute an original, but all of which when taken together will constitute a single contract. 

Delivery of an executed counterpart to this Amendment by telecopy or other electronic means shall

be effective as an original and shall constitute a representation that an original will be delivered.

3.7 No Actions, Claims, Etc. 

As of the date hereof, the Borrower hereby

acknowledges and confirms that it has no knowledge of any actions, causes of action, claims,

demands, damages and liabilities of whatever kind or nature, in law or in equity, against the Agent, the

Banks, or the Agent’s or the Banks’ respective officers, employees, representatives, agents, counsel or

directors arising from any action by such Persons, or failure of such Persons to act under the Credit

Agreement on or prior to the date hereof.

3.8 NORTH CAROLINA L

AW.

THIS AMENDMENT SHALL BE CONSTRUED IN

3

ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NORTH

CAROLINA.

3.9 Successors and Assigns. 

This Amendment shall be binding upon and inure to the

benefit of the parties hereto and their respective successors and assigns.

3.10 Expenses. 

Notwithstanding the provisions of Section 9.03 of the Credit Agreement,

each party hereto agrees that it shall be responsible for its own expenses in connection with this

Amendment;

provided

however the Borrower shall pay fees and disbursements of outside counsel for

the Agent in connection with the preparation of this Amendment in the amount of $6,000.

3.11 Consent to Jurisdiction; Service of Process; Waiver of Jury Trial.

The jurisdiction,

service of process and waiver of jury trial provisions set forth in Section 9.16 of the Credit Agreement

are hereby incorporated by reference,

mutatis mutandis.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

4

IN WITNESS WHEREOF the parties hereto have caused this Amendment to be duly executed

on the date first above written.

BORROWER:

5

THE CATO CORPORATION

By:_/s/ Charles D. Knight

Charles D. Knight

Executive Vice President and Chief Financial Officer

6

AGENT AND

BANKS:

7

WELLS FARGO BANK, NATIONAL ASSOCIATION, as Agent, Issuing Bank and as a Bank

By:/s/ Brad D. Bostick

Name: Brad D. Bostick: Title: Senior Vice President

EX-31.1

1

EXHIBIT 31.1

PRINCIPAL EXECUTIVE OFFICER CERTIFICATION PURSUANT TO

SECURITIES EXCHANGE ACT OF 1934 RULE 13a-14(a)/15d-14(a), AS ADOPTED

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 I, John P. D. Cato, certify that:

1. 

I have reviewed this report on Form 10-Q of The Cato Corporation (the “registrant”);

2. 

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to 

state a material fact necessary to make the statements made, in light of the circumstances under which 

such statements were made, not misleading with respect to the period covered by this report;

3. 

Based on my knowledge, the financial statements, and other financial information included in this report, 

fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of,

and for, the periods presented in this report;

4. 

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and

procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as

defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant 

and have:

a) 

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures 

to be designed under our supervision, to ensure that material information relating to the registrant, including its

consolidated subsidiaries, is made known to us by others within those entities,

particularly during the period in which this report is being prepared;

b) 

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be

designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the

preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) 

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our

conclusions about the effectiveness of the disclosure controls and procedures, as of the end 

of the period covered by this report based on such evaluation; and

d) 

Disclosed in this report any change in the registrant’s internal control over financial reporting that 

occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the 

case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s

internal control over financial reporting; and

5. 

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over

financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons

performing the equivalent functions):

a) 

All significant deficiencies and material weaknesses in the design or operation of internal control over financial

reporting which are reasonably likely to adversely affect the registrant’s ability to record, 

process, summarize and report financial information; and

b) 

Any fraud, whether or not material, that involves management or other employees who have a 

significant role in the registrant’s internal control over financial reporting.

Date: August 23, 2023

/s/ John P. D. Cato

John P. D. Cato

Chairman, President and

Chief Executive Officer

EX-31.2

1

EXHIBIT 31.2

PRINCIPAL FINANCIAL OFFICER CERTIFICATION PURSUANT TO

SECURITIES EXCHANGE ACT OF 1934 RULE 13a-14(a)/15d-14(a), AS ADOPTED

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Charles D. Knight, certify that:

1. 

I have reviewed this report on Form 10-Q of The Cato Corporation (the “registrant”);

2. 

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to 

state a material fact necessary to make the statements made, in light of the circumstances under which 

such statements were made, not misleading with respect to the period covered by this report;

3. 

Based on my knowledge, the financial statements, and other financial information included in this report, 

fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of,

and for, the periods presented in this report;

4. 

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and

procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as

defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant 

and have:

a) 

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures 

to be designed under our supervision, to ensure that material information relating to the registrant, including its

consolidated subsidiaries, is made known to us by others within those entities, 

particularly during the period in which this report is being prepared;

b) 

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be

designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the

preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) 

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our

conclusions about the effectiveness of the disclosure controls and procedures, as of the end 

of the period covered by this report based on such evaluation; and

d) 

Disclosed in this report any change in the registrant’s internal control over financial reporting that 

occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the 

case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s

internal control over financial reporting; and

5. 

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over

financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons

performing the equivalent functions):

a) 

All significant deficiencies and material weaknesses in the design or operation of internal control over financial

reporting which are reasonably likely to adversely affect the registrant’s ability to record, 

process, summarize and report financial information; and

b) 

Any fraud, whether or not material, that involves management or other employees who have a 

significant role in the registrant’s internal control over financial reporting.

Date: August 23, 2023

/s/ Charles D. Knight

Charles D. Knight

Executive Vice President

Chief Financial Officer

EX-32.1

1

EXHIBIT 32.1

CERTIFICATION OF PERIODIC REPORT

I, John P. D. Cato, Chairman, President and Chief Executive Officer of The Cato Corporation (the

“Company”), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350,

that on the date of this Certification:

1.

the Form 10-Q of the Company for the quarter ended July 29, 2023 (the “Report”) fully complies with the

requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.

the information contained in the Report fairly presents, in all material respects, the financial condition and

results of operations of the Company.

Dated: August 23, 2023

/s/ John P. D. Cato

John P. D. Cato

Chairman, President and

Chief Executive Officer

EX-32.2

1

EXHIBIT 32.2

CERTIFICATION OF PERIODIC REPORT

I, Charles D. Knight, Executive Vice President, Chief Financial Officer of The Cato Corporation (the

“Company”), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350,

that on the date of this Certification:

1.

the Form 10-Q of the Company for the quarter ended July 29, 2023 (the “Report”) fully complies with the

requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and

results of operations of the Company.

Dated: August 23, 2023

/s/ Charles D. Knight

Charles D. Knight

Executive Vice President

Chief Financial Officer

XML

Document and Entity Information	6 Months Ended
	Jul. 29, 2023 shares
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 29, 2023
Document Transition Report	false
Entity File Number	1-31340
Entity Registrant Name	THE CATO CORPORATION
Entity Incorporation State Country Code	DE
Entity Tax Identification Number	56-0484485
Entity Address Address Line 1	8100 Denmark Road
Entity Address City Or Town	Charlotte
Entity Address State Or Province	NC
Entity Address Postal Zip Code	28273-5975
City Area Code	(704)
Local Phone Number	554-8510
Security 12b Title	Class A - Common Stock, par value $.033 per share
Trading Symbol	CATO
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--02-03
Entity Filer Category	Accelerated Filer
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000018255
Amendment Flag	false
Common Class A [Member]
Class of Stock [Line Items]
Entity Common Stock Shares Outstanding	18,825,772
Common Class B [Member]
Class of Stock [Line Items]
Entity Common Stock Shares Outstanding	1,763,652

XML

Condensed Consolidated Statements Of Income (Loss) And Comprehensive Income (Loss) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 29, 2023	Jul. 30, 2022	Jul. 29, 2023	Jul. 30, 2022
Revenues
Retail sales	$ 181,181,000	$ 195,006,000	$ 371,492,000	$ 399,939,000
Other revenue (principally finance charges, late fees and layaway charges)	1,690,000	1,858,000	3,429,000	3,646,000
Total revenues	182,871,000	196,864,000	374,921,000	403,585,000
COSTS AND EXPENSES, NET
Cost of goods sold (exclusive of depreciation shown below)	117,617,000	131,749,000	239,704,000	263,992,000
Selling, general and administrative (exclusive of depreciation shown below)	61,618,000	60,768,000	123,552,000	121,209,000
Depreciation	2,510,000	2,811,000	4,867,000	5,554,000
Interest and other income	(1,334,000)	(1,884,000)	(2,231,000)	(2,287,000)
Cost and expenses, net	180,411,000	193,444,000	365,892,000	388,468,000
Income before income taxes	2,460,000	3,420,000	9,029,000	15,117,000
Income tax expense	1,333,000	5,694,000	3,475,000	7,643,000
Net income (loss)	$ 1,127,000	$ (2,274,000)	$ 5,554,000	$ 7,474,000
Basic earnings (loss) per share	$ 0.06	$ (0.11)	$ 0.27	$ 0.35
Diluted earnings (loss) per share	$ 0.06	$ (0.11)	$ 0.27	$ 0.35
Comprehensive income:
Net income (loss)	$ 1,127,000	$ (2,274,000)	$ 5,554,000	$ 7,474,000
Unrealized gain (loss) on available-for-sale securities, net of deferred income taxes of $50 and $156 for the three and six months ended July 29, 2023 and $18 and $(343) for the three and six months ended July 30, 2022, respectively	167,000	61,000	522,000	(1,145,000)
Comprehensive income (loss)	$ 1,294,000	$ (2,213,000)	$ 6,076,000	$ 6,329,000

XML

Condensed Consolidated Statements Of Income (Loss) And Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jul. 29, 2023	Apr. 29, 2023	Jul. 30, 2022	Apr. 30, 2022	Jul. 29, 2023	Jul. 30, 2022
Consolidated Statements of Income and Comprehensive Income
Tax Effect of Unrealized Gains (Losses) On Available-For-Sale Securities	$ 50	$ 107	$ 18	$ (362)	$ 156	$ (343)

XML

Condensed Consolidated Balance Sheets - USD ($)	Jul. 29, 2023	Jan. 28, 2023
Current Assets:
Cash and cash equivalents	$ 55,977,000	$ 20,005,000
Short-term investments	77,222,000	108,652,000
Restricted cash	3,877,000	3,787,000
Accounts receivable, net of allowance for customer credit losses of $763 and $761 at July 29, 2023 and January 28, 2023, respectively	26,915,000	26,497,000
Merchandise inventories	92,718,000	112,056,000
Prepaid expenses and other current assets	7,098,000	6,676,000
Total Current Assets	263,807,000	277,673,000
Property and equipment - net	73,871,000	70,382,000
Noncurrent deferred income taxes	9,888,000	9,213,000
Other assets	21,770,000	21,596,000
Right-of-Use assets - net	138,331,000	174,276,000
Total Assets	507,667,000	553,140,000
Current Liabilities:
Accounts payable	84,867,000	91,956,000
Accrued expenses	38,546,000	41,338,000
Accrued employee benefits and bonus	997,000	1,690,000
Accrued income taxes	3,561,000	613,000
Current lease liability	32,431,000	67,360,000
Total Current Liabilities	160,402,000	202,957,000
Other noncurrent liabilities	16,183,000	16,342,000
Lease liability	105,390,000	107,407,000
Stockholders' Equity:
Preferred stock, $100 par value per share, 100,000 shares authorized, none issued	0	0
Class of Stock [Line Items]
Common stock	695,000	691,000
Additional paid-in capital	124,798,000	122,431,000
Retained earnings	100,756,000	104,709,000
Accumulated other comprehensive income (loss)	(716,000)	(1,238,000)
Total Stockholders' Equity	225,533,000	226,593,000
Total Liabilities and Stockholders' Equity	507,667,000	553,140,000
Class A common stock, $0.033 par value per share, 50,000,000 shares authorized; 18,825,772 shares and 18,723,225 shares issued at July 29, 2023 and January 28, 2023, respectively
Class of Stock [Line Items]
Common stock	636,000	632,000
Convertible Class B common stock, $0.033 par value per share, 15,000,000 shares authorized; 1,763,652 shares and 1,763,652 shares issued at July 29, 2023 and January 28, 2023, respectively
Class of Stock [Line Items]
Common stock	$ 59,000	$ 59,000

XML

Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Jul. 29, 2023	Jan. 28, 2023
Class of Stock [Line Items]
Allowance For Doubtful Accounts Receivable Current	$ 763	$ 761
Preferred Stock Par Or Stated Value Per Share	$ 100	$ 100
Preferred Stock Shares Authorized	100,000	100,000
Common Class B [Member]
Class of Stock [Line Items]
Common Stock Shares Authorized	15,000,000	15,000,000
Common Stock Shares Issued	1,763,652	1,763,652
Common Stock Par Or Stated Value Per Share	$ 0.033	$ 0.033
Common Class A [Member]
Class of Stock [Line Items]
Common Stock Shares Authorized	50,000,000	50,000,000
Common Stock Shares Issued	18,825,772	18,723,225
Common Stock Par Or Stated Value Per Share	$ 0.033	$ 0.033

XML

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jul. 29, 2023	Jul. 30, 2022
Operating Activities:
Net income	$ 5,554	$ 7,474
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	4,867	5,554
Provision for customer credit losses	248	145
Purchase premium and premium amortization of investments	(97)	607
Share-based compensation	2,192	2,028
Deferred income taxes	(832)	0
Loss on disposal of property and equipment	1	93
Changes in operating assets and liabilities which provided (used) cash:
Accounts receivable	(666)	30,837
Merchandise inventories	19,338	8,314
Prepaid and other assets	(667)	(24)
Operating lease right-of-use assets and liabilities	(1,001)	(1,207)
Accrued income taxes	2,948	5,168
Accounts payable, accrued expenses and other liabilities	(10,306)	(42,013)
Net cash provided by operating activities	21,579	16,976
Investing Activities:
Expenditures for property and equipment	(8,470)	(10,384)
Purchase of short-term investments	(14,497)	(28,385)
Sales of short-term investments	46,777	48,917
Net cash provided by investing activities	23,810	10,148
Financing Activities:
Dividends paid	(6,962)	(7,270)
Repurchase of common stock	(2,563)	(9,596)
Proceeds from employee stock purchase plan	198	147
Net cash used in financing activities	(9,327)	(16,719)
Net increase in cash, cash equivalents, and restricted cash	36,062	10,405
Cash, cash equivalents, and restricted cash at beginning of period	23,792	23,678
Cash, cash equivalents, and restricted cash at end of period	59,854	34,083
Non-cash activity:
Accrued other assets and property and equipment	$ 572	$ 751

XML

Condensed Consolidated Statements Of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income [Member]
Balance at Jan. 29, 2022	$ 254,196	$ 728	$ 119,540	$ 134,208	$ (280)
Net income (loss)	9,748	0	0	9,748	0
Unrealized net gains (losses) on available-for-sale securities, net of deferred income tax benefit deferred income tax expense	(1,206)	0	0	0	(1,206)
Dividends paid	(3,638)	0	0	(3,638)	0
Class A common stock sold through employee stock purchase plan	111	0	111	0	0
Share-based compensation issuances and exercises	5	0	0	5	0
Share-based compensation expense	598	0	598	0	0
Repurchase and retirement of treasury shares	(9,162)	(20)	0	(9,142)	0
Balance at Apr. 30, 2022	250,652	708	120,249	131,181	(1,486)
Balance at Jan. 29, 2022	254,196	728	119,540	134,208	(280)
Net income (loss)	7,474
Unrealized net gains (losses) on available-for-sale securities, net of deferred income tax benefit deferred income tax expense	(1,145)
Balance at Jul. 30, 2022	245,833	714	121,696	124,848	(1,425)
Balance at Apr. 30, 2022	250,652	708	120,249	131,181	(1,486)
Net income (loss)	(2,274)	0	0	(2,274)	0
Unrealized net gains (losses) on available-for-sale securities, net of deferred income tax benefit deferred income tax expense	61	0	0	0	61
Dividends paid	(3,632)	0	0	(3,632)	0
Class A common stock sold through employee stock purchase plan	62	0	62	0	0
Share-based compensation issuances and exercises	321	7	308	6	0
Share-based compensation expense	1,077	0	1,077	0	0
Repurchase and retirement of treasury shares	(434)	(1)	0	(433)	0
Balance at Jul. 30, 2022	245,833	714	121,696	124,848	(1,425)
Balance at Jan. 28, 2023	226,593	691	122,431	104,709	(1,238)
Net income (loss)	4,428	0	0	4,428	0
Unrealized net gains (losses) on available-for-sale securities, net of deferred income tax benefit deferred income tax expense	355	0	0	0	355
Dividends paid	(3,455)	0	0	(3,455)	0
Class A common stock sold through employee stock purchase plan	195	0	195	0	0
Share-based compensation issuances and exercises	3	0	0	3	0
Share-based compensation expense	929	0	929	0	0
Repurchase and retirement of treasury shares	(2,267)	(8)	0	(2,259)	0
Balance at Apr. 29, 2023	226,781	683	123,555	103,426	(883)
Balance at Jan. 28, 2023	226,593	691	122,431	104,709	(1,238)
Net income (loss)	5,554
Unrealized net gains (losses) on available-for-sale securities, net of deferred income tax benefit deferred income tax expense	522
Balance at Jul. 29, 2023	225,533	695	124,798	100,756	(716)
Balance at Apr. 29, 2023	226,781	683	123,555	103,426	(883)
Net income (loss)	1,127	0	0	1,127	0
Unrealized net gains (losses) on available-for-sale securities, net of deferred income tax benefit deferred income tax expense	167	0	0	0	167
Dividends paid	(3,507)	0	0	(3,507)	0
Class A common stock sold through employee stock purchase plan	32	1	31	0	0
Share-based compensation issuances and exercises	0	0	0	0	0
Share-based compensation expense	1,227	12	1,212	3	0
Repurchase and retirement of treasury shares	(294)	(1)	0	(293)	0
Balance at Jul. 29, 2023	$ 225,533	$ 695	$ 124,798	$ 100,756	$ (716)

XML

Condensed Consolidated Statements Of Stockholders' Equity (Parentheticals) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jul. 29, 2023	Apr. 29, 2023	Jul. 30, 2022	Apr. 30, 2022	Jul. 29, 2023	Jul. 30, 2022
Statement of Stockholders' Equity [Abstract]
Tax Effect of Unrealized Gains (Losses) On Available-For-Sale Securities	$ 50	$ 107	$ 18	$ (362)	$ 156	$ (343)
Stock Transactions, Parenthetical Disclosures [Abstract]
Dividends per share	$ 0.17	$ 0.17	$ 0.17	$ 0.17

XML

General

6 Months Ended

Jul. 29, 2023

General [Abstract]

General

NOTE 1 - GENERAL

:

The condensed consolidated financial statements as of July 29, 2023 and for the

twenty-six-week

 periods

ended July 29, 2023 and July 30, 2022 have been prepared from the accounting records of The Cato

Corporation and its wholly-owned subsidiaries (the “Company”), and all amounts shown are unaudited. 

In the opinion of management, all adjustments considered necessary for a fair presentation of the financial

statements have been included. All such adjustments are of a normal, recurring nature unless otherwise

noted. The results of the interim period may not be indicative of the results expected for the entire year.

The interim financial statements should be read in conjunction with the consolidated financial statements

and notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended

January 28, 2023. Amounts as of January 28, 2023 have been derived from the audited balance sheet, but

do not include all disclosures required by accounting principles generally accepted in the United States of

America.

XML

Earnings Per Share

6 Months Ended

Jul. 29, 2023

Earnings Per Share [Abstract]

Earnings Per Share

NOTE 2 - EARNINGS PER SHARE:

Accounting Standard Codification (“ASC”) 260 –

Earnings Per Share

 requires dual presentation of basic and

diluted Earnings Per Share (“EPS”) on the face of all income statements for all entities with complex capital

structures. The Company has presented one basic EPS and one diluted EPS amount for all common shares in

the accompanying Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss). 

While the Company’s certificate of incorporation provides the right for the Board of Directors to declare

dividends on Class A shares without declaration of commensurate dividends on Class B shares, the Company

has historically paid the same dividends to both Class A and Class B shareholders and the Board of Directors

has resolved to continue this practice. Accordingly, the Company’s allocation of income for purposes of the

EPS computation is the same for Class A and Class B shares and the EPS amounts reported herein are

applicable to both Class A and Class B shares.

Basic EPS is computed as net income less earnings allocated to non-vested equity awards divided by the

weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential

dilution that could occur from common shares issuable through stock options and the Employee Stock

Purchase Plan.

Three Months Ended

Six Months Ended

July 29, 2023

July 30, 2022

July 29, 2023

July 30, 2022

(Dollars in thousands)

Numerator

Net earnings (loss)

$

1,127

$

(2,274)

$

5,554

$

7,474

(Earnings) loss allocated to non-vested equity awards

(54)

132

(292)

(405)

Net earnings (loss) available to common stockholders

$

1,073

$

(2,142)

$

5,262

$

7,069

Denominator

Basic weighted average common shares outstanding

19,395,484

20,005,315

19,349,266

20,077,258

Diluted weighted average common shares outstanding

19,395,484

20,005,315

19,349,266

20,077,258

Net income (loss) per common share

Basic earnings (loss) per share

$

0.06

$

(0.11)

$

0.27

$

0.35

Diluted earnings (loss) per share

$

0.06

$

(0.11)

$

0.27

$

0.35

XML

Accumulated Other Comprehensive Income

6 Months Ended

Jul. 29, 2023

Accumulated Other Comprehensive Income [Abstract]

Accumulated Other Comprehensive Income

NOTE 3 – ACCUMULATED OTHER COMPREHENSIVE INCOME:

The following table sets forth information regarding the reclassification out of Accumulated other

comprehensive income (in thousands) for the three months ended July 29, 2023:

Changes in Accumulated Other 

Comprehensive Income (a)

Unrealized Gains

and (Losses) on

Available-for-Sale

Securities

Beginning Balance at April 29, 2023

$

(883)

 Other comprehensive income before 

 reclassification

164

 Amounts reclassified from accumulated

 other comprehensive income (b)

3

Net current-period other comprehensive income

167

Ending Balance at July 29, 2023

$

(716)

(a) All amounts are net-of-tax. Amounts in parentheses indicate a debit/reduction to other comprehensive income.

(b) Includes $

4

 impact of Accumulated other comprehensive income reclassifications into Interest and other 

income for net gains on available-for-sale securities. The tax impact of this reclassification was $

1

.

The following table sets forth information regarding the reclassification out of Accumulated other

comprehensive income (in thousands) for the six months ended July 29, 2023:

Changes in Accumulated Other 

Comprehensive Income (a)

Unrealized Gains

and (Losses) on

Available-for-Sale

Securities

Beginning Balance at January 28, 2023

$

(1,238)

 Other comprehensive income before 

 reclassification

519

 Amounts reclassified from accumulated

 other comprehensive income (b)

3

Net current-period other comprehensive income

522

Ending Balance at July 29, 2023

$

(716)

(a) All amounts are net-of-tax. Amounts in parentheses indicate a debit/reduction to other comprehensive income.

(b) Includes $

4

 impact of Accumulated other comprehensive income reclassifications into Interest and other 

income for net gains on available-for-sale securities. The tax impact of this reclassification was $

1

.

NOTE 3 – ACCUMULATED OTHER COMPREHENSIVE INCOME (CONTINUED):

The following table sets forth information regarding the reclassification out of Accumulated other

comprehensive income (in thousands) for the three months ended July 30, 2022:

Changes in Accumulated Other 

Comprehensive Income (a)

Unrealized Gains

and (Losses) on

Available-for-Sale

Securities

Beginning Balance at April 30, 2022

$

(1,486)

 Other comprehensive income before 

 reclassifications

64

 Amounts reclassified from accumulated

 other comprehensive income (b)

(3)

Net current-period other comprehensive income

61

Ending Balance at July 30, 2022

$

(1,425)

(a) All amounts are net-of-tax. Amounts in parentheses indicate a debit/reduction to other comprehensive income.

(b) Includes $

4

 impact of Accumulated other comprehensive income reclassifications into Interest and other 

income for net gains on available-for-sale securities. The tax impact of this reclassification was $

1

.

The following table sets forth information regarding the reclassification out of Accumulated other

comprehensive income (in thousands) for the six months ended July 30, 2022:

Changes in Accumulated Other 

Comprehensive Income (a)

Unrealized Gains

and (Losses) on

Available-for-Sale

Securities

Beginning Balance at January 29, 2022

$

(280)

 Other comprehensive income before 

 reclassifications

(1,139)

 Amounts reclassified from accumulated

 other comprehensive income (b)

(6)

Net current-period other comprehensive income

(1,145)

Ending Balance at July 30, 2022

$

(1,425)

(a) All amounts are net-of-tax. Amounts in parentheses indicate a debit/reduction to other comprehensive income.

(b) Includes $

7

 impact of Accumulated other comprehensive income reclassifications into Interest and other 

income for net gains on available-for-sale securities. The tax impact of this reclassification was $

1

.

XML

Financing Arrangements

6 Months Ended

Jul. 29, 2023

Financing Arrangements [Abstract]

Financing Arrangements

NOTE 4 – FINANCING ARRANGEMENTS:

As of July 29, 2023, the Company has an unsecured revolving credit line, which provides for borrowings of

up to $

35.0

 million, less the balance of any revocable letters of credit related to purchase commitments, and is

committed through May 2027. The revolving credit agreement contains various financial covenants and

limitations, including the maintenance of specific financial ratios. On August 9, 2023, the Company

amended the revolving credit agreement to modify a definition used in calculating the Company’s minimum

EBITDAR coverage ratio to add back certain income tax receivables for purposes of calculating the ratio. For

the quarter ended July 29, 2023, after giving effect to the amendment, the Company was in compliance with

the credit agreement. There were

no

 borrowings outstanding,

no

r any outstanding letters of credit that

reduced borrowing availability, as of July 29, 2023. The weighted average interest rate under the credit

facility was

zero

 at July 29, 2023 due to

no

 borrowings outstanding.

XML

Reportable Segment Information

6 Months Ended

Jul. 29, 2023

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 –

Segment

Reporting

, 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. The products sold in each retail operating segment are similar in nature, as

they all offer women’s apparel, shoes and accessories. Merchandise inventory of 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 retail operating segments is distributed to retail stores

in a similar manner through the Company’s single distribution center and is subsequently sold to customers in

a similar manner.

The Company operates its women’s fashion specialty retail stores in

31

 states as of July 29, 2023,

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

Six Months Ended

July 29, 2023

Retail

Credit

Total

July 29, 2023

Retail

Credit

Total

Revenues

$182,213

$658

$182,871

Revenues

$373,648

$1,273

$374,921

Depreciation

2,509

1

2,510

Depreciation

4,866

1

4,867

Interest and other income

(1,334)

-

(1,334)

Interest and other income

(2,231)

-

(2,231)

Income before

 income taxes

2,207

253

2,460

Income before

 income taxes

8,590

439

9,029

Capital expenditures

2,300

-

2,300

Capital expenditures

8,470

-

8,470

Three Months Ended

Six Months Ended

July 30, 2022

Retail

Credit

Total

July 30, 2022

Retail

Credit

Total

Revenues

$196,314

$550

$196,864

Revenues

$402,523

$1,062

$403,585

Depreciation

2,810

1

2,811

Depreciation

5,553

1

5,554

Interest and other income

(1,884)

-

(1,884)

Interest and other income

(2,287)

-

(2,287)

Income before

 income taxes

3,289

131

3,420

Income before

 income taxes

14,903

214

15,117

Capital expenditures

5,944

-

5,944

Capital expenditures

10,384

-

10,384

Retail

Credit

Total

Total assets as of July 29, 2023

$468,923

$38,744

$507,667

Total assets as of January 28, 2023

514,609

38,531

553,140

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

Six Months Ended

July 29, 2023

July 30, 2022

July 29, 2023

July 30, 2022

Payroll

$

142

$

132

$

276

$

269

Postage

109

99

210

192

Other expenses

154

187

348

386

Total expenses

$

405

$

418

$

834

$

847

XML

Stock-Based Compensation

6 Months Ended

Jul. 29, 2023

Stock-Based Compensation [Abstract]

Stock-Based Compensation

NOTE 6 – STOCK-BASED COMPENSATION:

As of July 29, 2023, the Company had two long-term compensation plans pursuant to which stock-based

compensation was outstanding or could be granted. The 2018 Incentive Compensation Plan and 2013

Incentive Compensation Plan are for the granting of various forms of equity-based awards, including

restricted stock and stock options for grant, to officers, directors and key employees. Effective May 24, 2018,

shares for grant were no longer available under the 2013 Incentive Compensation Plan.

The following table presents the number of options and shares of restricted stock initially authorized and

available for grant under each of the plans as of July 29, 2023:

2013

2018

Plan

Plan

Total

Options and/or restricted stock initially authorized

1,500,000

4,725,000

6,225,000

Options and/or restricted stock available for grant:

 July 29, 2023

-

3,095,601

3,095,601

In accordance with ASC 718 –

Compensation–Stock Compensation

, the fair value of current restricted

stock awards is estimated on the date of grant based on the market price of the Company’s stock and is

amortized to compensation expense on a straight-line basis over the related vesting periods. As of July 29,

2023 and January 28, 2023, there was $

11,597,000

 and $

10,543,000

, respectively, of total unrecognized

compensation expense related to nonvested restricted stock awards, which had a remaining weighted-

average vesting period of

2.6

 years and

2.1

 years, respectively. Total compensation expense during the

three and six months ended July 29, 2023 was $

1,230,000

 and $

2,158,000

, respectively, compared to

$

1,403,000

 and $

2,006,000

 for the three and six months ended July 30, 2022. These amounts are

classified as a component of Selling, general and administrative expenses in the Condensed Consolidated

Statements of Income (Loss) and Comprehensive Income (Loss).

The following summary shows the changes in the shares of unvested restricted stock outstanding during the

six months ended July 29, 2023:

Weighted Average

Number of

Grant Date Fair

Shares

Value Per Share

Restricted stock awards at January 28, 2023

1,059,433

$

13.10

Granted

407,808

8.30

Vested

(217,238)

13.97

Forfeited or expired

(74,338)

12.28

Restricted stock awards at July 29, 2023

1,175,665

$

11.33

The Company’s Employee Stock Purchase Plan allows eligible full-time employees to purchase a limited

number of shares of the Company’s Class A Common Stock during each semi-annual offering period at a

15

% discount through payroll deductions. During the six months ended July 29, 2023 and July 30, 2022, the

Company sold

26,127

 and

12,196

 shares to employees at an average discount of $

1.31

 and $

2.12

 per share,

respectively, under the Employee Stock Purchase Plan. The compensation expense recognized for the

15

%

discount given under the Employee Stock Purchase Plan was approximately $

34,000

 and $

26,000

 for the six

months ended July 29, 2023 and July 30, 2022, respectively. These expenses are classified as a component of

Selling, general and administrative expenses.

XML

Fair Value Measurements

6 Months Ended

Jul. 29, 2023

Fair Value Measurements [Abstract]

Fair Value Measurements

NOTE 7 – FAIR VALUE MEASUREMENTS:

The following tables set forth information regarding the Company’s financial assets and liabilities that are

measured at fair value (in thousands) as of July 29, 2023 and January 28, 2023:

Quoted

Prices in

Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

July 29, 2023

Assets

Inputs

Inputs

Description

Level 1

Level 2

Level 3

Assets:

 State/Municipal Bonds

$

19,367

$

-

$

19,367

$

-

 Corporate Bonds

30,026

-

30,026

-

 U.S. Treasury/Agencies Notes and Bonds

21,073

-

21,073

-

 Cash Surrender Value of Life Insurance

9,524

-

-

9,524

 Asset-backed Securities (ABS)

6,108

-

6,108

-

 Corporate Equities

852

852

-

-

 Commercial Paper

648

-

648

-

Total Assets

$

87,598

$

852

$

77,222

$

9,524

Liabilities:

 Deferred Compensation

$

(8,724)

$

-

$

-

$

(8,724)

Total Liabilities

$

(8,724)

$

-

$

-

$

(8,724)

Quoted

Prices in

Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

January 28, 2023

Assets

Inputs

Inputs

Description

Level 1

Level 2

Level 3

Assets:

 State/Municipal Bonds

$

23,102

$

-

$

23,102

$

-

 Corporate Bonds

47,901

-

47,901

-

 U.S. Treasury/Agencies Notes and Bonds

27,250

-

27,250

-

 Cash Surrender Value of Life Insurance

9,274

-

-

9,274

 Asset-backed Securities (ABS)

9,373

-

9,373

-

 Corporate Equities

923

923

-

-

 Commercial Paper

1,026

-

1,026

-

Total Assets

$

118,849

$

923

$

108,652

$

9,274

Liabilities:

 Deferred Compensation

$

(8,903)

$

-

$

-

$

(8,903)

Total Liabilities

$

(8,903)

$

-

$

-

$

(8,903)

The Company’s investment portfolio was primarily invested in corporate bonds and tax-exempt and taxable

governmental debt securities held in managed accounts with underlying ratings of A or better at July 29, 2023

and January 28, 2023. The state, municipal and corporate bonds have contractual maturities which range

from

one day

 to

2.6

 years. The U.S. Treasury Notes have contractual maturities which range from

two days

 to

2.6

 years. These securities are classified as available-for-sale and are recorded as Short-term investments,

Restricted cash and Other assets on the accompanying Condensed Consolidated Balance Sheets. These assets

are carried at fair value with unrealized gains and losses reported net of taxes in Accumulated other

comprehensive income. The asset-backed securities are bonds comprised of auto loans and bank credit cards

that carry AAA ratings. The auto loan asset-backed securities are backed by static pools of auto loans that

were originated and serviced by captive auto finance units, banks or finance companies. The bank credit card

asset-backed securities are backed by revolving pools of credit card receivables generated by account holders

of cards from American Express, Citibank, JPMorgan Chase, Capital One and Discover.

Additionally, at July 29, 2023, the Company had $

0.9

 million of corporate equities and deferred

compensation plan assets of $

9.5

 million. At January 28, 2023, the Company had $

0.9

 million of corporate

equities and deferred compensation plan assets of $

9.3

 million. All of these assets are recorded within Other

assets in the Condensed Consolidated Balance Sheets.

Level 1 securities are measured at fair value using quoted active market prices. Level 2 investment securities

include corporate bonds, municipal bonds and asset-backed securities for which quoted prices may not be

available on active exchanges for identical instruments. Their fair value is principally based on market values

determined by management with assistance of a third-party pricing service. Since quoted prices in active

markets for identical assets are not available, these prices are determined by the pricing service using

observable market information such as quotes from less active markets and/or quoted prices of securities with

similar characteristics, among other factors.

Deferred compensation plan assets consist of life insurance policies. These life insurance policies are valued

based on the cash surrender value of the insurance contract, which is determined based on such factors as the

fair value of the underlying assets and discounted cash flow and are therefore classified within Level 3 of the

valuation hierarchy. The Level 3 liability associated with the life insurance policies represents a deferred

compensation obligation, the value of which is tracked via underlying insurance funds’ net asset values, as

recorded in Other noncurrent liabilities in the Condensed Consolidated Balance Sheet. These funds are

designed to mirror mutual funds and money market funds that are observable and actively traded.

The following tables summarize the change in fair value of the Company’s financial assets and liabilities

measured using Level 3 inputs for the six months ended July 29, 2023 and the year ended January 28, 2023

(in thousands):

Fair Value

Measurements Using

Significant Unobservable

Asset Inputs (Level 3)

Cash Surrender Value

Beginning Balance at January 28, 2023

$

9,274

Redemptions

-

Additions

-

Total gains or (losses):

 Included in interest and other income (or

changes in net assets)

250

 Included in other comprehensive income

-

Ending Balance at July 29, 2023

$

9,524

Fair Value

Measurements Using

Significant Unobservable

Liability Inputs (Level 3)

Deferred Compensation

Beginning Balance at January 28, 2023

$

(8,903)

 Redemptions

646

 Additions

(162)

 Total (gains) or losses:

 Included in interest and other income (or

changes in net assets)

(305)

 Included in other comprehensive income

-

Ending Balance at July 29, 2023

$

(8,724)

Fair Value

Measurements Using

Significant Unobservable

Asset Inputs (Level 3)

Cash Surrender Value

Beginning Balance at January 29, 2022

$

11,472

Redemptions

(1,718)

Additions

-

Total gains or (losses):

 Included in interest and other income (or

changes in net assets)

(480)

 Included in other comprehensive income

-

Ending Balance at January 28, 2023

$

9,274

Fair Value

Measurements Using

Significant Unobservable

Liability Inputs (Level 3)

Deferred Compensation

Beginning Balance at January 29, 2022

$

(10,020)

 Redemptions

1,142

 Additions

(379)

 Total (gains) or losses:

 Included in interest and other income (or

changes in net assets)

354

 Included in other comprehensive income

-

Ending Balance at January 28, 2023

$

(8,903)

XML

Recent Accounting Pronouncements

6 Months Ended

Jul. 29, 2023

Recent Accounting Pronouncements [Abstract]

Recent Accounting Pronouncements

NOTE 8 – RECENT ACCOUNTING PRONOUNCEMENTS:

The Company has reviewed recent accounting pronouncements and believe none will have a material

impact on the Company’s financial statements.

XML

Income Taxes

6 Months Ended

Jul. 29, 2023

Income Taxes [Abstract]

Income Taxes

NOTE 9 – INCOME TAXES:

The Company had an effective tax rate for the first six months of 2023 of

38.5

% compared to

50.6

% for

the first six months of 2022. The change in the effective tax rate for the first six months of 2023 compared

to the prior year was primarily due to a decrease in Global Intangible Low-taxed Income (GILTI), state

income taxes, non-deductible officer’s compensation, and increases in foreign tax credits and employment

credits, partially offset by the foreign rate differential.

XML

Commitments And Contingencies

6 Months Ended

Jul. 29, 2023

Commitments And Contingencies [Abstract]

Commitments And Contingencies

NOTE 10 – COMMITMENTS AND CONTINGENCIES:

The Company is, from time to time, involved in routine litigation incidental to the conduct of its business,

including litigation regarding the merchandise that it sells, litigation regarding intellectual property,

litigation instituted by persons injured upon premises under its control, litigation with respect to various

employment matters, including alleged discrimination and wage and hour litigation, and litigation with

present or former employees.

Although such litigation is routine and incidental to the conduct of the Company’s business, as with any

business of its size with a significant number of employees and significant merchandise sales, such

litigation could result in large monetary awards. Based on information currently available, management

does not believe that any reasonably possible losses arising from current pending litigation will have a

material adverse effect on the Company’s condensed consolidated financial statements. However, given

the inherent uncertainties involved in such matters, an adverse outcome in one or more of such matters

could materially and adversely affect the Company’s financial condition, results of operations and cash

flows in any particular reporting period. The Company accrues for these matters when the liability is

deemed probable and reasonably estimable.

XML

Revenue Recognition

6 Months Ended

Jul. 29, 2023

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. Layaway sales

are recorded as deferred revenue until the customer takes possession of, or forfeits, the merchandise. Gift

cards do not have expiration dates. 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 six months ended July 29, 2023, the Company estimated customer credit losses of $

151,000

 and

$

272,000

, respectively, compared to $

87,000

 and $

173,000

 for the three and six months ended July 30,

2022, respectively. Sales purchased on the Company’s proprietary credit card for the three and six

months ended July 29, 2023 were $

5.9

 million and $

11.7

 million, respectively, compared to $

5.8

 million

and $

11.5

 million for the three and six months ended July 30, 2022, respectively.

The following table provides information about receivables and contract liabilities from contracts with

customers (in thousands):

Balance as of

July 29, 2023

January 28, 2023

Proprietary Credit Card Receivables, net

$

10,737

$

10,553

Gift Card Liability

$

6,924

$

8,523

XML

Leases

6 Months Ended

Jul. 29, 2023

Leases [Abstract]

Leases

NOTE 12 – LEASES:

The Company determines whether an arrangement is a lease at inception. The Company has operating

leases for stores, offices, warehouse space and equipment. Its leases have remaining lease terms of up to

10

 years based on the estimated likelihood of renewal. Some include options to extend the lease term for

up to

five years

, and some include options to terminate the lease

within one year

. The Company considers

these options in determining the lease term used to establish its right-of-use assets and lease liabilities.

The Company’s lease agreements do not contain any material residual value guarantees or material

restrictive covenants.

As most of the Company’s leases do not provide an implicit rate, the Company uses its estimated

incremental borrowing rate based on the information available at commencement date of the lease in

determining the present value of lease payments.

The components of lease cost are shown below (in thousands):

Three Months Ended

July 29, 2023

July 30, 2022

Operating lease cost (a)

$

17,597

$

17,847

Variable lease cost (b)

$

504

$

578

(a) Includes right-of-use asset amortization of ($

0.3

) million and ($

0.5

) million for the three months ended July 29, 2023 and July 30,

2022, respectively.

(b) Primarily related to monthly percentage rent for stores not presented on the condensed consolidated balance sheets.

Six Months Ended

July 29, 2023

July 30, 2022

Operating lease cost (a)

$

35,675

$

35,602

Variable lease cost (b)

$

1,098

$

1,346

(a) Includes right-of-use asset amortization of ($

0.6

) million and ($

0.9

) million for the six months ended July 29, 2023 and July 30,

2022, respectively.

(b) Primarily related to monthly percentage rent for stores not presented on the condensed consolidated balance sheets.

Supplemental cash flow information and non-cash activity related to the Company’s operating leases are

as follows (in thousands):

Operating cash flow information:

Three Months Ended

July 29, 2023

July 30, 2022

Cash paid for amounts included in the measurement of lease liabilities

$

16,679

$

17,038

Non-cash activity:

Right-of-use assets obtained in exchange for lease obligations

$

999

$

2,534

Six Months Ended

July 29, 2023

July 30, 2022

Cash paid for amounts included in the measurement of lease liabilities

$

34,024

$

33,874

Non-cash activity:

Right-of-use assets obtained in exchange for lease obligations

$

2,903

$

6,049

Weighted-average remaining lease term and discount rate for the Company’s operating leases are as

follows:

As of

July 29, 2023

July 30, 2022

Weighted-average remaining lease term

2.0

 years

2.2

 years

Weighted-average discount rate

3.26%

2.89%

Maturities of lease liabilities by fiscal year for the Company’s operating leases are as follows (in

thousands):

Fiscal Year

2023 (a)

$

33,897

2024

49,250

2025

32,219

2026

19,094

2027

8,991

Thereafter

1,748

Total lease payments

145,199

Less: Imputed interest

7,378

Present value of lease liabilities

$

137,821

(a) Excluding the six months ended July 29, 2023

XML

General (Policies)

6 Months Ended

Jul. 29, 2023

General [Abstract]

Consolidation, Policy

The condensed consolidated financial statements as of July 29, 2023 and for the

twenty-six-week

 periods

ended July 29, 2023 and July 30, 2022 have been prepared from the accounting records of The Cato

Corporation and its wholly-owned subsidiaries (the “Company”), and all amounts shown are unaudited. 

In the opinion of management, all adjustments considered necessary for a fair presentation of the financial

statements have been included. All such adjustments are of a normal, recurring nature unless otherwise

noted. The results of the interim period may not be indicative of the results expected for the entire year.

Basis of Accounting, Policy

The interim financial statements should be read in conjunction with the consolidated financial statements

and notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended

January 28, 2023. Amounts as of January 28, 2023 have been derived from the audited balance sheet, but

do not include all disclosures required by accounting principles generally accepted in the United States of

America.

XML

Earnings Per Share (Tables)

6 Months Ended

Jul. 29, 2023

Earnings Per Share [Abstract]

Earnings Per Share

Three Months Ended

Six Months Ended

July 29, 2023

July 30, 2022

July 29, 2023

July 30, 2022

(Dollars in thousands)

Numerator

Net earnings (loss)

$

1,127

$

(2,274)

$

5,554

$

7,474

(Earnings) loss allocated to non-vested equity awards

(54)

132

(292)

(405)

Net earnings (loss) available to common stockholders

$

1,073

$

(2,142)

$

5,262

$

7,069

Denominator

Basic weighted average common shares outstanding

19,395,484

20,005,315

19,349,266

20,077,258

Diluted weighted average common shares outstanding

19,395,484

20,005,315

19,349,266

20,077,258

Net income (loss) per common share

Basic earnings (loss) per share

$

0.06

$

(0.11)

$

0.27

$

0.35

Diluted earnings (loss) per share

$

0.06

$

(0.11)

$

0.27

$

0.35

XML

Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Jul. 29, 2023

Accumulated Other Comprehensive Income [Abstract]

Reclassification out of Accumulated Other Comprehensive Income Loss

Changes in Accumulated Other 

Comprehensive Income (a)

Unrealized Gains

and (Losses) on

Available-for-Sale

Securities

Beginning Balance at April 29, 2023

$

(883)

 Other comprehensive income before 

 reclassification

164

 Amounts reclassified from accumulated

 other comprehensive income (b)

3

Net current-period other comprehensive income

167

Ending Balance at July 29, 2023

$

(716)

(a) All amounts are net-of-tax. Amounts in parentheses indicate a debit/reduction to other comprehensive income.

(b) Includes $

4

 impact of Accumulated other comprehensive income reclassifications into Interest and other 

income for net gains on available-for-sale securities. The tax impact of this reclassification was $

1

.

Changes in Accumulated Other 

Comprehensive Income (a)

Unrealized Gains

and (Losses) on

Available-for-Sale

Securities

Beginning Balance at January 28, 2023

$

(1,238)

 Other comprehensive income before 

 reclassification

519

 Amounts reclassified from accumulated

 other comprehensive income (b)

3

Net current-period other comprehensive income

522

Ending Balance at July 29, 2023

$

(716)

(a) All amounts are net-of-tax. Amounts in parentheses indicate a debit/reduction to other comprehensive income.

(b) Includes $

4

 impact of Accumulated other comprehensive income reclassifications into Interest and other 

income for net gains on available-for-sale securities. The tax impact of this reclassification was $

1

.

Changes in Accumulated Other 

Comprehensive Income (a)

Unrealized Gains

and (Losses) on

Available-for-Sale

Securities

Beginning Balance at April 30, 2022

$

(1,486)

 Other comprehensive income before 

 reclassifications

64

 Amounts reclassified from accumulated

 other comprehensive income (b)

(3)

Net current-period other comprehensive income

61

Ending Balance at July 30, 2022

$

(1,425)

(a) All amounts are net-of-tax. Amounts in parentheses indicate a debit/reduction to other comprehensive income.

(b) Includes $

4

 impact of Accumulated other comprehensive income reclassifications into Interest and other 

income for net gains on available-for-sale securities. The tax impact of this reclassification was $

1

.

Changes in Accumulated Other 

Comprehensive Income (a)

Unrealized Gains

and (Losses) on

Available-for-Sale

Securities

Beginning Balance at January 29, 2022

$

(280)

 Other comprehensive income before 

 reclassifications

(1,139)

 Amounts reclassified from accumulated

 other comprehensive income (b)

(6)

Net current-period other comprehensive income

(1,145)

Ending Balance at July 30, 2022

$

(1,425)

(a) All amounts are net-of-tax. Amounts in parentheses indicate a debit/reduction to other comprehensive income.

(b) Includes $

7

 impact of Accumulated other comprehensive income reclassifications into Interest and other 

income for net gains on available-for-sale securities. The tax impact of this reclassification was $

1

.

XML

Reportable Segment Information (Tables)

6 Months Ended

Jul. 29, 2023

Reportable Segment Information [Abstract]

Schedule Of Segment Reporting Information, By Segment

Three Months Ended

Six Months Ended

July 29, 2023

Retail

Credit

Total

July 29, 2023

Retail

Credit

Total

Revenues

$182,213

$658

$182,871

Revenues

$373,648

$1,273

$374,921

Depreciation

2,509

1

2,510

Depreciation

4,866

1

4,867

Interest and other income

(1,334)

-

(1,334)

Interest and other income

(2,231)

-

(2,231)

Income before

 income taxes

2,207

253

2,460

Income before

 income taxes

8,590

439

9,029

Capital expenditures

2,300

-

2,300

Capital expenditures

8,470

-

8,470

Three Months Ended

Six Months Ended

July 30, 2022

Retail

Credit

Total

July 30, 2022

Retail

Credit

Total

Revenues

$196,314

$550

$196,864

Revenues

$402,523

$1,062

$403,585

Depreciation

2,810

1

2,811

Depreciation

5,553

1

5,554

Interest and other income

(1,884)

-

(1,884)

Interest and other income

(2,287)

-

(2,287)

Income before

 income taxes

3,289

131

3,420

Income before

 income taxes

14,903

214

15,117

Capital expenditures

5,944

-

5,944

Capital expenditures

10,384

-

10,384

Retail

Credit

Total

Total assets as of July 29, 2023

$468,923

$38,744

$507,667

Total assets as of January 28, 2023

514,609

38,531

553,140

Direct Expenses of Credit Segment in SGA

Three Months Ended

Six Months Ended

July 29, 2023

July 30, 2022

July 29, 2023

July 30, 2022

Payroll

$

142

$

132

$

276

$

269

Postage

109

99

210

192

Other expenses

154

187

348

386

Total expenses

$

405

$

418

$

834

$

847

XML

Stock Based Compensation (Tables)

6 Months Ended

Jul. 29, 2023

Stock-Based Compensation [Abstract]

Schedule Of Changes In Restricted Stock Outstanding

2013

2018

Plan

Plan

Total

Options and/or restricted stock initially authorized

1,500,000

4,725,000

6,225,000

Options and/or restricted stock available for grant:

 July 29, 2023

-

3,095,601

3,095,601

Schedule of Stock Options Outstanding

Weighted Average

Number of

Grant Date Fair

Shares

Value Per Share

Restricted stock awards at January 28, 2023

1,059,433

$

13.10

Granted

407,808

8.30

Vested

(217,238)

13.97

Forfeited or expired

(74,338)

12.28

Restricted stock awards at July 29, 2023

1,175,665

$

11.33

XML

Fair Value Measurements (Tables)

6 Months Ended

Jul. 29, 2023

Fair Value Measurements [Abstract]

Financial Assets And Liabilities Measured At Fair Value

Quoted

Prices in

Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

July 29, 2023

Assets

Inputs

Inputs

Description

Level 1

Level 2

Level 3

Assets:

 State/Municipal Bonds

$

19,367

$

-

$

19,367

$

-

 Corporate Bonds

30,026

-

30,026

-

 U.S. Treasury/Agencies Notes and Bonds

21,073

-

21,073

-

 Cash Surrender Value of Life Insurance

9,524

-

-

9,524

 Asset-backed Securities (ABS)

6,108

-

6,108

-

 Corporate Equities

852

852

-

-

 Commercial Paper

648

-

648

-

Total Assets

$

87,598

$

852

$

77,222

$

9,524

Liabilities:

 Deferred Compensation

$

(8,724)

$

-

$

-

$

(8,724)

Total Liabilities

$

(8,724)

$

-

$

-

$

(8,724)

Quoted

Prices in

Active

Significant

Markets for

Other

Significant

Identical

Observable

Unobservable

January 28, 2023

Assets

Inputs

Inputs

Description

Level 1

Level 2

Level 3

Assets:

 State/Municipal Bonds

$

23,102

$

-

$

23,102

$

-

 Corporate Bonds

47,901

-

47,901

-

 U.S. Treasury/Agencies Notes and Bonds

27,250

-

27,250

-

 Cash Surrender Value of Life Insurance

9,274

-

-

9,274

 Asset-backed Securities (ABS)

9,373

-

9,373

-

 Corporate Equities

923

923

-

-

 Commercial Paper

1,026

-

1,026

-

Total Assets

$

118,849

$

923

$

108,652

$

9,274

Liabilities:

 Deferred Compensation

$

(8,903)

$

-

$

-

$

(8,903)

Total Liabilities

$

(8,903)

$

-

$

-

$

(8,903)

Change In Fair Value Of Financial Assets And Liabilities Measured Using Level 3 Inputs

Fair Value

Measurements Using

Significant Unobservable

Asset Inputs (Level 3)

Cash Surrender Value

Beginning Balance at January 28, 2023

$

9,274

Redemptions

-

Additions

-

Total gains or (losses):

 Included in interest and other income (or

changes in net assets)

250

 Included in other comprehensive income

-

Ending Balance at July 29, 2023

$

9,524

Fair Value

Measurements Using

Significant Unobservable

Liability Inputs (Level 3)

Deferred Compensation

Beginning Balance at January 28, 2023

$

(8,903)

 Redemptions

646

 Additions

(162)

 Total (gains) or losses:

 Included in interest and other income (or

changes in net assets)

(305)

 Included in other comprehensive income

-

Ending Balance at July 29, 2023

$

(8,724)

Fair Value

Measurements Using

Significant Unobservable

Asset Inputs (Level 3)

Cash Surrender Value

Beginning Balance at January 29, 2022

$

11,472

Redemptions

(1,718)

Additions

-

Total gains or (losses):

 Included in interest and other income (or

changes in net assets)

(480)

 Included in other comprehensive income

-

Ending Balance at January 28, 2023

$

9,274

Fair Value

Measurements Using

Significant Unobservable

Liability Inputs (Level 3)

Deferred Compensation

Beginning Balance at January 29, 2022

$

(10,020)

 Redemptions

1,142

 Additions

(379)

 Total (gains) or losses:

 Included in interest and other income (or

changes in net assets)

354

 Included in other comprehensive income

-

Ending Balance at January 28, 2023

$

(8,903)

XML

Revenue Recognition (Tables)

6 Months Ended

Jul. 29, 2023

Revenue Recognition [Abstract]

Receivables And Contract Liabilities From Contracts With Customers

Balance as of

July 29, 2023

January 28, 2023

Proprietary Credit Card Receivables, net

$

10,737

$

10,553

Gift Card Liability

$

6,924

$

8,523

XML

Leases (Tables)

6 Months Ended

Jul. 29, 2023

Leases [Abstract]

Components Of Lease Cost

Three Months Ended

July 29, 2023

July 30, 2022

Operating lease cost (a)

$

17,597

$

17,847

Variable lease cost (b)

$

504

$

578

(a) Includes right-of-use asset amortization of ($

0.3

) million and ($

0.5

) million for the three months ended July 29, 2023 and July 30,

2022, respectively.

(b) Primarily related to monthly percentage rent for stores not presented on the condensed consolidated balance sheets.

Six Months Ended

July 29, 2023

July 30, 2022

Operating lease cost (a)

$

35,675

$

35,602

Variable lease cost (b)

$

1,098

$

1,346

(a) Includes right-of-use asset amortization of ($

0.6

) million and ($

0.9

) million for the six months ended July 29, 2023 and July 30,

2022, respectively.

(b) Primarily related to monthly percentage rent for stores not presented on the condensed consolidated balance sheets.

Operating Cash Flow Information

Operating cash flow information:

Three Months Ended

July 29, 2023

July 30, 2022

Cash paid for amounts included in the measurement of lease liabilities

$

16,679

$

17,038

Non-cash activity:

Right-of-use assets obtained in exchange for lease obligations

$

999

$

2,534

Six Months Ended

July 29, 2023

July 30, 2022

Cash paid for amounts included in the measurement of lease liabilities

$

34,024

$

33,874

Non-cash activity:

Right-of-use assets obtained in exchange for lease obligations

$

2,903

$

6,049

Weighted-Average Remaining Lease Term And Discount Rate

As of

July 29, 2023

July 30, 2022

Weighted-average remaining lease term

2.0

 years

2.2

 years

Weighted-average discount rate

3.26%

2.89%

Maturities Of Lease Liabilities By Fiscal Year

Fiscal Year

2023 (a)

$

33,897

2024

49,250

2025

32,219

2026

19,094

2027

8,991

Thereafter

1,748

Total lease payments

145,199

Less: Imputed interest

7,378

Present value of lease liabilities

$

137,821

(a) Excluding the six months ended July 29, 2023

XML

General (Narrative) (Details) - $ / shares	3 Months Ended				6 Months Ended
	Jul. 29, 2023	Apr. 29, 2023	Jul. 30, 2022	Apr. 30, 2022	Jul. 29, 2023
Subsequent Event [Line Items]
Quarterly Declared Dividend	$ 0.17	$ 0.17	$ 0.17	$ 0.17
Fiscal period					182 days

XML

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jul. 29, 2023	Apr. 29, 2023	Jul. 30, 2022	Apr. 30, 2022	Jul. 29, 2023	Jul. 30, 2022
Earnings Per Share [Abstract]
Net earnings (loss)	$ 1,127	$ 4,428	$ (2,274)	$ 9,748	$ 5,554	$ 7,474
(Earnings) loss allocated to non-vested equity awards	(54)		132		(292)	(405)
Net earnings (loss) available to common stockholders	$ 1,073		$ (2,142)		$ 5,262	$ 7,069
Basic weighted average common shares outstanding	19,395,484		20,005,315		19,349,266	20,077,258
Diluted weighted average common shares outstanding	19,395,484		20,005,315		19,349,266	20,077,258
Basic earnings (loss) per share	$ 0.06		$ (0.11)		$ 0.27	$ 0.35
Diluted earnings (loss) per share	$ 0.06		$ (0.11)		$ 0.27	$ 0.35

XML

Accumulated Other Comprehensive Income (Reclassification out of Accumulated Other Comprehensive Income Loss) (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jul. 29, 2023	Apr. 29, 2023	Jul. 30, 2022	Apr. 30, 2022	Jul. 29, 2023	Jul. 30, 2022
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance		$ (1,238)			$ (1,238)
Net current-period other comprehensive income	$ 167	355	$ 61	$ (1,206)	522	$ (1,145)
Ending Balance	(716)				(716)
Changes in Accumulated Other Comprehensive Income Unrealized Gains And (Losses) On Available-for-Sale Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance	(883)	(1,238)	(1,486)	(280)	(1,238)	(280)
Other comprehensive income before reclassification	164		64		519	(1,139)
Amounts reclassified from accumulated other comprehensive income	3		(3)		3	(6)
Net current-period other comprehensive income	167		61		522	(1,145)
Ending Balance	$ (716)	$ (883)	$ (1,425)	$ (1,486)	$ (716)	$ (1,425)

XML

Accumulated Other Comprehensive Income (Footnote) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 29, 2023	Jul. 30, 2022	Jul. 29, 2023	Jul. 30, 2022
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Tax impact of reclassification	$ 1,333	$ 5,694	$ 3,475	$ 7,643
Reclassified Accumulated Unrealized Gains and Losses
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest and Other Income	4	4	4	7
Tax impact of reclassification	$ 1	$ 1	$ 1	$ 1

XML

Financing Arrangements (Narrative) (Details) - Revolving Credit Facility [Member]	Jul. 29, 2023 USD ($)
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 35,000,000.0
Borrowings outstanding	0
Outstanding letters of credit	$ 0
Weighted average interest	0.00%

XML

Reportable Segment Information (Schedule of Segment Reporting Information, By Segment) (Details)	3 Months Ended		6 Months Ended
	Jul. 29, 2023 USD ($) States	Jul. 30, 2022 USD ($)	Jul. 29, 2023 USD ($) Segments States	Jul. 30, 2022 USD ($)	Jan. 28, 2023 USD ($)
Segment Reporting Information [Line Items]
Operating segments | Segments			4
Reportable segments | Segments			2
Number of States in which Entity Operates | States	31		31
Revenues	$ 182,871,000	$ 196,864,000	$ 374,921,000	$ 403,585,000
Depreciation	2,510,000	2,811,000	4,867,000	5,554,000
Interest and other income	(1,334,000)	(1,884,000)	(2,231,000)	(2,287,000)
Income before income taxes	2,460,000	3,420,000	9,029,000	15,117,000
Capital expenditures	2,300,000	5,944,000	8,470,000	10,384,000
Total assets	507,667,000		507,667,000		$ 553,140,000
Retail Segment [Member]
Segment Reporting Information [Line Items]
Revenues	182,213,000	196,314,000	373,648,000	402,523,000
Depreciation	2,509,000	2,810,000	4,866,000	5,553,000
Interest and other income	(1,334,000)	(1,884,000)	(2,231,000)	(2,287,000)
Income before income taxes	2,207,000	3,289,000	8,590,000	14,903,000
Capital expenditures	2,300,000	5,944,000	8,470,000	10,384,000
Total assets	468,923,000		468,923,000		514,609,000
Credit Segment [Member]
Segment Reporting Information [Line Items]
Revenues	658,000	550,000	1,273,000	1,062,000
Depreciation	1,000	1,000	1,000	1,000
Interest and other income	0	0	0	0
Income before income taxes	253,000	131,000	439,000	214,000
Capital expenditures	0	$ 0	0	$ 0
Total assets	$ 38,744,000		$ 38,744,000		$ 38,531,000

XML

Reportable Segment Information (Direct Expenses of Credit Segment in SGA) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 29, 2023	Jul. 30, 2022	Jul. 29, 2023	Jul. 30, 2022
Segment Reporting Information [Line Items]
Total expenses	$ 61,618	$ 60,768	$ 123,552	$ 121,209
Credit Segment [Member]
Segment Reporting Information [Line Items]
Payroll	142	132	276	269
Postage	109	99	210	192
Other expenses	154	187	348	386
Total expenses	$ 405	$ 418	$ 834	$ 847

XML

Stock-Based Compensation (Narrative) (Details) - Common Class A [Member] - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jul. 29, 2023	Jul. 30, 2022	Jul. 29, 2023	Jul. 30, 2022	Jan. 28, 2023
Restricted Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized Compensation Expense	$ 11,597,000		$ 11,597,000		$ 10,543,000
Remaining Weighted-Average Vesting Period			2 years 7 months 6 days		2 years 1 month 6 days
Compensation Expense	$ 1,230,000	$ 1,403,000	$ 2,158,000	$ 2,006,000
Employee Stock Purchase Plan Share Purchase Discount Rate	15.00%		15.00%
Employee Stock Purchase Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares Sold			26,127	12,196
Compensation Expense			$ 34,000	$ 26,000
Employee Stock Purchase Plan Share Purchase Discount	$ 1.31	$ 2.12	$ 1.31	$ 2.12

XML

Stock-Based Compensation (Stock Based Compensation Plans) (Details) - Options and or restricted stock [Member]	Jul. 29, 2023 shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options And/Or Restricted Stock Initially Authorized	6,225,000
Options And/Or Restricted Stock Available For Grant	3,095,601
2013 Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options And/Or Restricted Stock Initially Authorized	1,500,000
Options And/Or Restricted Stock Available For Grant	0
2018 Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options And/Or Restricted Stock Initially Authorized	4,725,000
Options And/Or Restricted Stock Available For Grant	3,095,601

XML

Stock-Based Compensation (Schedule Of Changes In Restricted Stock Outstanding) (Details) - 2004 Plan [Member] - Restricted Stock [Member] - Common Class A [Member]	6 Months Ended
	Jul. 29, 2023 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested [Roll Forward]
Restricted Stock Awards Beginning Balance | shares	1,059,433
Restricted Stock Awards Granted | shares	407,808
Restricted Stock Awards Vested | shares	(217,238)
Restricted Stock Awards Forfeited | shares	(74,338)
Restricted Stock Awards Ending Balance | shares	1,175,665
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Weighted Average Grant Date Fair Value [Roll Forward]
Restricted Stock Awards Weighted Average Grant Date Fair Value Per Share - Beginning Balance | $ / shares	$ 13.10
Granted Restricted Stock Awards Weighted Average Grant Date Fair Value Per Share | $ / shares	8.30
Vested Restricted Stock Awards Weighted Average Grant Date Fair Value Per Share | $ / shares	13.97
Forfeited Restricted Stock Awards Weighted Average Grant Date Fair Value Per Share | $ / shares	12.28
Restricted Stock Awards Weighted Average Grant Date Fair Value Per Share - Ending Balance | $ / shares	$ 11.33

XML

Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands	Jul. 29, 2023	Jan. 28, 2023
State/Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	$ 19,367	$ 23,102
State/Municipal Bonds [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale, Term	1 day
State/Municipal Bonds [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale, Term	2 years 7 months 6 days
Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	$ 30,026	47,901
Corporate Bonds [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale, Term	1 day
Corporate Bonds [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale, Term	2 years 7 months 6 days
Deferred compensation plan assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Surrender Value of Life Insurance	$ 9,524	9,274
Corporate Equities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	852	923
US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	$ 21,073	$ 27,250
US Treasury Securities [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale, Term	2 days
US Treasury Securities [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt Securities, Available-for-sale, Term	2 years 7 months 6 days

XML

Fair Value Measurements (Financial Assets And Liabilities Measured At Fair Value) (Details) - USD ($) $ in Thousands	Jul. 29, 2023	Jan. 28, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	$ 87,598	$ 118,849
Total Liabilities	(8,724)	(8,903)
Deferred Compensation [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Liabilities, Fair Value Disclosure	(8,724)	(8,903)
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	852	923
Total Liabilities	0	0
Level 1 [Member] | Deferred Compensation [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Liabilities, Fair Value Disclosure	0	0
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	77,222	108,652
Total Liabilities	0	0
Level 2 [Member] | Deferred Compensation [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Liabilities, Fair Value Disclosure	0	0
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets	9,524	9,274
Total Liabilities	(8,724)	(8,903)
Level 3 [Member] | Deferred Compensation [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Liabilities, Fair Value Disclosure	(8,724)	(8,903)
State/Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	19,367	23,102
State/Municipal Bonds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	0	0
State/Municipal Bonds [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	19,367	23,102
State/Municipal Bonds [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	0	0
Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	30,026	47,901
Corporate Bonds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	0	0
Corporate Bonds [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	30,026	47,901
Corporate Bonds [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	0	0
U.S. Treasury/Agencies Notes and Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	21,073	27,250
U.S. Treasury/Agencies Notes and Bonds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	0	0
U.S. Treasury/Agencies Notes and Bonds [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	21,073	27,250
U.S. Treasury/Agencies Notes and Bonds [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	0	0
Cash Surrender Value of Life Insurance [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Surrender Value of Life Insurance	9,524	9,274
Cash Surrender Value of Life Insurance [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Surrender Value of Life Insurance	0	0
Cash Surrender Value of Life Insurance [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Surrender Value of Life Insurance	0	0
Cash Surrender Value of Life Insurance [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Surrender Value of Life Insurance	9,524	9,274
Asset-backed Securities (ABS)) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	6,108	9,373
Asset-backed Securities (ABS)) [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	0	0
Asset-backed Securities (ABS)) [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	6,108	9,373
Asset-backed Securities (ABS)) [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	0	0
Corporate Equities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	852	923
Corporate Equities [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	852	923
Corporate Equities [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	0	0
Corporate Equities [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	0	0
Commercial Paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	648	1,026
Commercial Paper [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	0	0
Commercial Paper [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	648	1,026
Commercial Paper [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	$ 0	$ 0

XML

Fair Value Measurements (Change In Fair Value Of Financial Assets And Liabilities Measured Using Level 3 Inputs) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jul. 29, 2023	Jan. 28, 2023
Deferred Compensation [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	$ (8,903)	$ (10,020)
Redemptions	646	1,142
Additions	(162)	(379)
Total (gains) or losses: Included in interest and other income (or changes in net assets)	(305)	354
Total (gains) or losses: Included in other comprehensive income	0	0
Ending Balance	(8,724)	(8,903)
Cash Surrender Value of Life Insurance [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	9,274	11,472
Redemptions	0	(1,718)
Additions	0	0
Total gains or (losses): Included in interest and other income (or changes in net assets)	250	(480)
Total gains or (losses): Included in other comprehensive income	0	0
Ending Balance	$ 9,524	$ 9,274

XML

Income Taxes (Narrative) (Details)	6 Months Ended
	Jul. 29, 2023	Jul. 30, 2022
Income Taxes [Abstract]
Effective Income Tax Rate	38.50%	50.60%

XML

Revenue Recognition (Narrative) (Details) - Sales on Company's Proprietary Credit Card [Member] - USD ($)	3 Months Ended		6 Months Ended
	Jul. 29, 2023	Jul. 30, 2022	Jul. 29, 2023	Jul. 30, 2022
Revenue Recognition [Line Items]
Customer credit losses	$ 151,000	$ 87,000	$ 272,000	$ 173,000
Revenue from Contract with Customer, Excluding Assessed Tax	5,900,000	$ 5,800,000	11,700,000	$ 11,500,000
Secured [Member]
Revenue Recognition [Line Items]
Receivable	$ 0		$ 0

XML

Revenue Recognition (Receivables And Contract Liabilities From Contracts With Customers) (Details) - USD ($) $ in Thousands	Jul. 29, 2023	Jan. 28, 2023
Revenue Recognition [Abstract]
Proprietary Credit Card Receivables Net	$ 10,737	$ 10,553
Gift Card Liability	$ 6,924	$ 8,523

XML

Leases (Narrative) (Details)	6 Months Ended
	Jul. 29, 2023
Lease, Cost [Abstract]
Options to extend the lease term	five years
Option to terminate the lease	within one year
Maximum [Member]
Lease, Cost [Abstract]
Remaining lease terms	10 years

XML

Leases (Components Of Lease Cost) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 29, 2023	Jul. 30, 2022	Jul. 29, 2023	Jul. 30, 2022
Lease, Cost [Abstract]
Operating lease cost	$ 17,597	$ 17,847	$ 35,675	$ 35,602
Variable lease cost	504	578	1,098	1,346
Right-of-use asset amortization	$ 300	$ 500	$ 600	$ 900

XML

Leases (Operating Cash Flow Information) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 29, 2023	Jul. 30, 2022	Jul. 29, 2023	Jul. 30, 2022
Lease, Cost [Abstract]
Cash paid for amounts included in the measurement of lease liabilities	$ 16,679	$ 17,038	$ 34,024	$ 33,874
Right-of-use assets obtained in exchange for lease obligations	$ 999	$ 2,534	$ 2,903	$ 6,049

XML

Leases (Weighted-Average Remaining Lease Term And Discount Rate) (Details)	Jul. 29, 2023	Jul. 30, 2022
Lease, Cost [Abstract]
Weighted-average remaining lease term	2 years	2 years 2 months 12 days
Weighted-average discount rate	3.26%	2.89%

XML

Leases (Maturities Of Lease Liabilities By Fiscal Year) (Details) $ in Thousands	Jul. 29, 2023 USD ($)
Leases [Abstract]
2023	$ 33,897
2024	49,250
2025	32,219
2026	19,094
2027	8,991
Thereafter	1,748
Total lease payments	145,199
Less: Imputed interest	7,378
Present value of lease liabilities	$ 137,821