v3.26.1
Reportable Segment Information
 6 Months Ended
Aug. 01, 2026
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
–
Segment
Reporting
(“ASC 280”), including Cato, It’s
Fashion, Versona and Credit.
The Company has
two
reportable
segments: Retail
and Credit.
The Company
has aggregated
its
three
retail operating
segments, inclusive
of
the e-commerce activities of each retail operating segment, 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
distributed
to
customers in a
similar manner. The
Company operates
its
women’s
fashion
specialty
retail
stores
in
31
states as of August 1, 2026, 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 Company
does
not allocate certain corporate expenses to the Credit segment.
The Company’s
President and
Chief Executive Officer
is the
Company’s chief
operating decision
maker
(“CODM”).
The
structure described
above reflects
the
manner in
which
the
CODM regularly
assesses
information
for
decision-making
purposes,
including
the
allocation
of
resources.
The
Company
also
provides corporate
services, including
finance, information
technology,
and corporate
administration, to
its segments which are fully allocated to the retail segment. Interest and other income from assets held for
investment and sale are
not included in assessing
the segments’ performance and,
therefore, not allocated
to either segment.
The
CODM
manages
and
evaluates
the
segments’
operating
performance
based
on
segment
sales,
expenses,
and
segment
income
before
income
taxes
as
presented
in
the
Company’s
annual
budget
and
forecasting process,
as well
as
monthly analyses
of budget-to-actual
and prior
year variances.
Segment
expenses
and
other
items
primarily
include
cost
of
goods
sold,
selling,
general
and
administrative
expenses,
depreciation
and
interest
and
other
income.
Assessment
and
approval
of
all
capital
expenditures are determined to be in support of and based on the needs of the retail segment; however, the
CODM
does
not
evaluate
performance
or
allocate
resources
based
on
segment
asset
balances
and,
therefore,
total
segment
assets
are
not
presented
in
the
tables
below.
The
measure
of
segment
assets
is
reported on the balance sheet as total consolidated assets.
The accounting
policies of
the segments
are the
same as
those described
in the
Summary of
Significant
Accounting Policies in Note 1 of the consolidated financial statements included in the Company’s Annual
Report on Form 10-K for the fiscal year ended January 31, 2026.
NOTE 5 – REPORTABLE SEGMENT INFORMATION
(CONTINUED):
The following schedule summarizes certain segment information (in
thousands):
Three Months Ended
August 1, 2026
Retail
Credit
Total
Revenues
$
164,850
$
651
$
165,501
Cost of goods sold (a)
110,180
-
110,180
Selling, general, and administrative (b)
39,099
423
39,522
Corporate overhead
14,525
-
14,525
Depreciation
2,246
-
2,246
Interest and other income, net
(88)
(266)
(354)
Segment income (loss) before income taxes
$
(1,112)
$
494
$
(618)
Corporate interest and other income
(1,914)
Income before income taxes
$
1,296
Capital expenditures
$
1,343
$
-
$
1,343
Six Months Ended
August 1, 2026
Retail
Credit
Total
Revenues
$
335,289
$
1,316
$
336,605
Cost of goods sold (a)
216,520
-
216,520
Selling, general, and administrative (b)
77,816
820
78,636
Corporate overhead
29,341
-
29,341
Depreciation
4,482
-
4,482
Interest and other income, net
(173)
(538)
(711)
Segment income before income taxes
$
7,303
$
1,034
$
8,337
Corporate interest and other income
(2,790)
Income before income taxes
$
11,127
Capital expenditures
$
2,410
$
-
$
2,410
(a) 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.
(b) Selling, general, and administrative expense include corporate and store payroll, related payroll taxes and
benefits, insurance, supplies, advertising, bank and credit card processing fees.
NOTE 5 – REPORTABLE SEGMENT INFORMATION
(CONTINUED):
Three Months Ended
August 2, 2025
Retail
Credit
Total
Revenues
$
175,856
$
653
$
176,509
Cost of goods sold (a)
111,467
-
111,467
Selling, general, and administrative (b)
40,130
414
40,544
Corporate overhead
16,827
-
16,827
Depreciation
2,525
-
2,525
Interest and other income, net
(89)
(288)
(377)
Segment income before income taxes
$
4,996
$
527
$
5,523
Corporate interest and other income
(1,016)
Income before income taxes
$
6,539
Capital expenditures
$
1,343
$
-
$
1,343
Six Months Ended
August 2, 2025
Retail
Credit
Total
Revenues
$
345,433
$
1,318
$
346,751
Cost of goods sold (a)
220,784
-
220,784
Selling, general, and administrative (b)
79,289
801
80,090
Corporate overhead
32,606
-
32,606
Depreciation
5,089
-
5,089
Interest and other income, net
(192)
(592)
(784)
Segment income before income taxes
$
7,857
$
1,109
$
8,966
Corporate interest and other income
(1,810)
Income before income taxes
$
10,776
Capital expenditures
$
2,362
$
-
$
2,362
(a) 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.
(b) Selling, general, and administrative expense include corporate and store payroll, related payroll taxes and
benefits, insurance, supplies, advertising, bank and credit card processing fees.