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Reportable Segment Information
 6 Months Ended
Aug. 02, 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 August 2, 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
 
segment
performance based on segment income before income taxes.
The following schedule summarizes certain segment
 
information (in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
August 2, 2025
Retail
Credit
Total
Revenues
$
175,856
$
653
$
176,509
Cost of goods sold
111,467
-
111,467
Selling, general, and administrative (a)
40,130
414
40,544
Corporate overhead
16,827
-
16,827
Depreciation
2,525
-
2,525
Interest and other income
(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
220,784
-
220,784
Selling, general, and administrative (a)
79,289
801
80,090
Corporate overhead
32,606
-
32,606
Depreciation
5,089
-
5,089
Interest and other income
(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) 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 3, 2024
Retail
Credit
Total
Revenues
$
167,954
$
674
$
168,628
Cost of goods sold
109,122
-
109,122
Selling, general, and administrative (a)
40,946
416
41,362
Corporate overhead
16,819
-
16,819
Depreciation
2,328
1
2,329
Interest and other income
(97)
(284)
(381)
Segment income (loss) before income taxes
$
(1,164)
$
541
$
(623)
Corporate interest and other income
(1,361)
Income before income taxes
$
738
Capital expenditures
$
1,538
$
-
$
1,538
Six Months Ended
August 3, 2024
Retail
Credit
Total
Revenues
$
344,384
$
1,343
$
345,727
Cost of goods sold
221,627
-
221,627
Selling, general, and administrative (a)
81,915
823
82,738
Corporate overhead
32,195
-
32,195
Depreciation
4,368
1
4,369
Interest and other income
(188)
(518)
(706)
Segment income before income taxes
$
4,467
$
1,037
$
5,504
Corporate interest and other income
(6,857)
Income before income taxes
$
12,361
Capital expenditures
$
4,799
$
-
$
4,799
(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.