XML 23 R12.htm IDEA: XBRL DOCUMENT v3.25.3
Reportable Segment Information
 9 Months Ended
Nov. 01, 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
(“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, 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 November 1, 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,
e
xpenses, 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
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
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
November 1, 2025
Retail
Credit
Total
Revenues
$
154,740
$
662
$
155,402
Cost of goods sold
104,517
-
104,517
Selling, general, and administrative (a)
39,955
410
40,365
Corporate overhead
16,609
-
16,609
Depreciation
2,444
-
2,444
Interest and other income
(88)
(286)
(374)
Segment income (loss) before income taxes
$
(8,697)
$
538
$
(8,159)
Corporate interest and other income
(1,807)
Loss before income taxes
$
(6,352)
Capital expenditures
$
530
$
-
$
530
Nine Months Ended
November 1, 2025
Retail
Credit
Total
Revenues
$
500,173
$
1,980
$
502,153
Cost of goods sold
325,302
-
325,302
Selling, general, and administrative (a)
119,244
1,211
120,455
Corporate overhead
49,215
-
49,215
Depreciation
7,532
-
7,532
Interest and other income
(282)
(877)
(1,159)
Segment income (loss) before income taxes
$
(838)
$
1,646
$
808
Corporate interest and other income
(3,616)
Income before income taxes
$
4,424
Capital expenditures
$
2,892
$
-
$
2,892
(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
November 2, 2024
Retail
Credit
Total
Revenues
$
145,508
$
662
$
146,170
Cost of goods sold
102,955
-
102,955
Selling, general, and administrative (a)
40,683
406
41,089
Corporate overhead
16,787
-
16,787
Depreciation
2,737
-
2,737
Interest and other income
(105)
(319)
(424)
Segment income (loss) before income taxes
$
(17,549)
$
575
$
(16,974)
Corporate interest and other income
(2,222)
Loss before income taxes
$
(14,752)
Capital expenditures
$
1,710
$
-
$
1,710
Nine Months Ended
November 2, 2024
Retail
Credit
Total
Revenues
$
489,892
$
2,005
$
491,897
Cost of goods sold
324,582
-
324,582
Selling, general, and administrative (a)
122,597
1,230
123,827
Corporate overhead
48,982
-
48,982
Depreciation
7,105
1
7,106
Interest and other income
(292)
(838)
(1,130)
Segment income (loss) before income taxes
$
(13,082)
$
1,612
$
(11,470)
Corporate interest and other income
(9,079)
Loss before income taxes
$
(2,391)
Capital expenditures
$
6,509
$
-
$
6,509
(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.