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Reportable Segment Information
 3 Months Ended
May 03, 2025
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
, 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
 
distributed
 
to
customers in a
 
similar manner. The
 
Company operates
 
its
 
women’s
 
fashion
 
specialty
 
retail
 
stores
 
in
31
states as of May 3, 2025, 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
 
profit
 
or
 
loss
 
from
 
operations
 
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
 
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 February 1, 2025. The Company evaluates performance based
on profit or loss from
 
operations before income taxes.
The following schedule summarizes certain segment
 
information (in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
May 3, 2025
Retail
Credit
Total
Revenues
$
169,577
$
665
$
170,242
Cost of goods sold
109,318
-
109,318
Selling, general, and administrative (a)
39,159
387
39,546
Corporate overhead
15,779
-
15,779
Depreciation
2,564
-
2,564
Interest and other income
(105)
(303)
(408)
Income (loss) before income taxes
$
2,862
$
581
$
3,443
Corporate interest and other income
(794)
Income (loss) before income taxes
$
4,237
Capital expenditures
$
1,019
$
-
$
1,019
Three Months Ended
May 4, 2024
Retail
Credit
Total
Revenues
$
176,430
$
669
$
177,099
Cost of goods sold
112,505
-
112,505
Selling, general, and administrative (a)
40,968
408
41,376
Corporate overhead
15,376
-
15,376
Depreciation
2,040
-
2,040
Interest and other income
(90)
(235)
(325)
Income (loss) before income taxes
$
5,630
$
497
$
6,127
Corporate interest and other income
(5,496)
Income (loss) before income taxes
$
11,623
Capital expenditures
$
3,261
$
-
$
3,261
(a) Selling, general, and administrative expense
 
include corporate and store payroll, related
 
payroll taxes and benefits, insurance, supplies, advertising,
 
bank and credit card
 
processing fees.