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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