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Revenue Recognition
 9 Months Ended
Nov. 01, 2025
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.
Gift cards
do
not have expiration dates. Layaway transactions are recorded as
deferred revenue until the customer takes
possession or
forfeits the
merchandise. 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.
The
Company
estimated
customer
credit
losses
of
$
213,000
and
$
655,000
for
the
three
and
nine
months
ended
November
1,
2025,
respectively,
compared
to
$
154,000
and
$
492,000
for
the
three
and
nine
months
ended November 2, 2024, respectively.
Sales purchased on the Company’s
proprietary credit card for the
three
and
nine
months
ended
November
1,
2025
were
$
5.3
million
and
$
16.4
million,
respectively,
compared
to
$
5.1
million
and
$
16.4
million
for
the
three
and
nine
months
ended
November
2,
2024,
respectively.
The
following
table
provides
information
about
receivables
and
contract
liabilities
from
contracts
with
customers (in thousands):
Balance as of
November 1, 2025
February 1, 2025
Proprietary Credit Card Receivables, net
$
10,848
$
10,848
G
ift Card Liability
$
5,280
$
7,541