What changed in this filing

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Item 1. Financial Statements

2026-05-28 compared with 2025-11-25 · 328 added, 447 removed, 356 unchanged (69% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS

OF INCOME (LOSS) AND

COMPREHENSIVE INCOME (LOSS)

OF INCOME AND

COMPREHENSIVE INCOME

Three Months Ended

Nine Months Ended

(Dollars in thousands, except per share data)

3 unchanged sentences

COSTS AND EXPENSES, NET

Cost of goods sold (exclusive of depreciation shown

Cost of goods sold (exclusive of depreciation shown below)

Selling, general and administrative (exclusive of depreciation

Interest and other income

Interest and other income, net

Costs and expenses, net

(Loss) income before income taxes

Income tax (benefit) expense

Net (loss) income

Basic (loss) earnings per share

Diluted (loss) earnings per share

Income before income taxes

Income tax expense

Basic earnings per share

Diluted earnings per share

Comprehensive income:

Net (loss) income

Net unrealized gain (loss) on available-for-sale securities

for each of the three and nine months ended

November 1, 2025 and November 2, 2024, respectively

Comprehensive (loss) income

ee notes to condensed consolidated financial statements (unaudited).

Net unrealized gain (loss) on available-for-sale securities, net

of deferred income taxes of $

for each of the three months

ended May 2, 2026 and May 3, 2025

Comprehensive income

See notes to condensed consolidated financial statements (unaudited).

THE CATO CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

November 1, 2025

February 1, 2025

(Dollars in thousands)

January 31, 2026

(Dollars in thousands, except per share data)

Current Assets:

3 unchanged sentences

Accounts receivable, net of allowance for customer credit losses of

at November 1, 2025 and February 1, 2025, respectively

at May 2, 2026 and January 31, 2026, respectively

Merchandise inventories

7 unchanged sentences

Accrued expenses

Accrued employee benefits and bonus

Accrued income taxes

Accrued bonus and benefits

Current lease liability

9 unchanged sentences

shares authorized;

issued at November 1, 2025 and February 1, 2025, respectively

shares issued

at May 2, 2026 and January 31, 2026, respectively

Convertible Class B common stock, $

1 unchanged sentence

shares authorized;

issued at November 1, 2025 and February 1, 2025

shares issued at May 2, 2026 and January 31, 2026

Additional paid-in capital

3 unchanged sentences

Total Liabilities and Stockholders’ Equity

ee notes to condensed consolidated financial statements (unaudited).

See notes to condensed consolidated financial statements (unaudited).

THE CATO CORPORATION

1 unchanged sentence

OF CASH FLOWS

Nine Months Ended

November 1, 2025

November 2, 2024

Three Months Ended

(Dollars in thousands)

Operating Activities:

Net income (loss)

Adjustments to reconcile net income (loss) to net cash provided

(used) in operating activities:

Adjustments to reconcile net income to net cash provided by operating activities:

Provision for customer credit losses

2 unchanged sentences

Share-based compensation

(Gain) loss on disposal of property and equipment

Changes in operating assets and liabilities which provided

Gain on disposal of property and equipment

Changes in operating assets and liabilities which provided (used) cash:

Accounts receivable

3 unchanged sentences

Accounts payable, accrued expenses and other liabilities

Net cash provided (used) in operating activities

Net cash provided by operating activities

Investing Activities:

3 unchanged sentences

Sales of other assets

Net cash (used) provided by investing activities

Proceeds from cash value of life insurance policy

Net cash provided by investing activities

Financing Activities:

Dividends paid

Repurchase of common stock

1 unchanged sentence

Net cash used in financing activities

Net increase (decrease) in cash, cash equivalents, and restricted cash

Net increase in cash, cash equivalents, and restricted cash

Cash, cash equivalents, and restricted cash at beginning of period

2 unchanged sentences

Accrued other assets and property and equipment expenditures

ee notes to condensed consolidated financial statements (unaudited).

Accrued treasury stock

See notes to condensed consolidated financial statements (unaudited).

THE CATO CORPORATION

CONDENSED CONSOLIDATED

CONDENSED CONSOLIDATED STATEMENTS

OF STOCKHOLDERS’ EQUITY

1 unchanged sentence

Stockholders'

(Dollars in thousands, except per share data)

Balance — February 1, 2025

Income (Loss)

(Dollars in thousands)

Balance — January 31, 2026

Comprehensive income:

Unrealized net gain on available-for-sale securities, net

deferred income tax benefit of $

Unrealized net loss on available-for-sale securities, net of deferred

income tax benefit of $

Class A common stock sold through employee stock purchase

3 unchanged sentences

Balance — May 2, 2026

Comprehensive income:

Unrealized net gain on available-for-sale securities, net

deferred income tax expense of $

Share-based compensation expense

Repurchase and retirement of treasury shares

Balance — August 2, 2025

Comprehensive income:

Unrealized net gain on available-for-sale securities, net

deferred income tax benefit of $

Class A common stock sold through employee stock purchase

Share-based compensation expense

Balance — November 1, 2025

ee notes to condensed consolidated financial statements (unaudited).

THE CATO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS

OF STOCKHOLDERS’ EQUITY

Comprehensive

Stockholders'

(Dollars in thousands, except per share data)

Income (Loss)

(Dollars in thousands)

Balance — February 1, 2025

Comprehensive income:

Unrealized net loss on available-for-sale securities, net of

deferred income tax benefit of $

Dividends paid ($

Unrealized net gain on available-for-sale securities, net of deferred

income tax benefit of $

Class A common stock sold through employee stock purchase

3 unchanged sentences

Balance — May 3, 2025

Comprehensive income:

Unrealized net gain on available-for-sale securities, net

deferred income tax expense of $

Dividends paid ($

Class A common stock sold through employee stock purchase

Share-based compensation expense

Balance — August 3, 2024

Comprehensive income:

Unrealized net gain on available-for-sale securities, net

deferred income tax expense of $

Dividends paid ($

Class A common stock sold through employee stock purchase

Share-based compensation expense

Repurchase and retirement of treasury shares

Balance — November 2, 2024

ee notes to condensed consolidated financial statements (unaudited).

See notes to condensed consolidated financial statements (unaudited).

THE CATO CORPORATION

1 unchanged sentence

NOTE 1 - GENERAL

months ended November 1, 2025 and November 2,

2024 have been prepared from the accounting records

Corporation and its wholly-owned

subsidiaries (the “Company”), and all

amounts shown are

In the opinion of management, all adjustments considered necessary for a fair statement of the

financial statements

normal, recurring

nature unless

otherwise noted.

interim periods

be indicative

results expected

The condensed consolidated

financial statements as

the three months

2, 2026 and May 3, 2025 have been prepared from the accounting records of

The Cato Corporation and its

management, all

been included.

All such adjustments are of a normal, recurring nature unless otherwise noted.

of the interim period may not be indicative of the results expected

for the entire year.

The interim financial

2 unchanged sentences

the consolidated financial statements

of February 1,

of January 31,

2026 have been

3 unchanged sentences

disclosures required by

accounting principles generally

accepted in the

accounting principles

generally accepted in

United States of America.

On February 16, 2024, the Company closed

on the sale of land held

for investment.

The sale resulted in a

million which

the accompanying

Consolidated Statements of Income

(Loss) and Comprehensive Income

(Loss) for the

nine months ended

November 2, 2024.

settlement and sale of its corporate jet.

International

unauthorized,

establishment

Company submitted a refund claim and recorded a $

million reduction in cost of goods sold in the first

quarter of fiscal 2026.

Subsequent Events:

Subsequent to May 2, 2026, the Company repurchased

million partial

refund claim.

Company anticipates receiving payment for the

balance of its tariff

refund claim by the end of

quarter of fiscal 2026.

receivable due from the IRS.

THE CATO CORPORATION

9 unchanged sentences

The Company has presented one basic EPS and one diluted EPS amount for all common shares in

the accompanying Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss).

incorporation

dividends on Class A shares without declaration of commensurate dividends on Class B shares, the Company

has historically paid the same dividends to both Class A and Class B shareholders

and the Board of Directors

has resolved to continue this

Accordingly, the Company’s allocation

of income for purposes

applicable to both Class A and Class

income (loss)

less earnings

non-vested equity

awards divided

Stock Purchase Plan, of which there were none

for the periods presented below.

the accompanying

Condensed Consolidated

Statements of

Comprehensive Income.

Company’s certificate

of incorporation

declare dividends

historically paid the same dividends to both Class A and Class B shareholders and the

Board of Directors has

resolved to continue this practice.

Accordingly, the Company’s allocation of income for purposes of the EPS

computation is the same

for Class A and

Class B shares and

the EPS amounts reported

herein are applicable

to both Class A and Class B

weighted average

common shares

outstanding for

Purchase Plan.

Three Months Ended

Nine Months Ended

(Dollars in thousands, except per share data)

Net earnings (loss)

Earnings allocated to non-vested equity awards

Net earnings (loss) available to common stockholders

Net earnings available to common stockholders

Basic weighted average common shares outstanding

1 unchanged sentence

Net income per common share

Basic earnings (loss) per share

Diluted earnings (loss) per share

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 – ACCUMULATED OTHER COMPREHENSIVE INCOME:

comprehensive

income (in thousands) for the

three months ended November 1, 2025:

Changes in Accumulated Other

Comprehensive Income (a)

Unrealized Gains

and (Losses) on

Available-for-Sale

Beginning Balance at August 2, 2025

Other comprehensive income before

reclassification

Amounts reclassified from accumulated

other comprehensive income to net income

Net current-period other comprehensive income

Ending Balance at November 1, 2025

(a) All amounts are net-of-tax.

comprehensive

income (in thousands) for the

nine months ended November 1, 2025:

Changes in Accumulated Other

Comprehensive Income (a)

Unrealized Gains

and (Losses) on

Available-for-Sale

Beginning Balance at February 1, 2025

Other comprehensive income before

reclassification

Amounts reclassified from accumulated

other comprehensive income to net income (b)

Net current-period other comprehensive income

Ending Balance at November 1, 2025

(a) All amounts are net-of-tax.

Amounts in parentheses indicate a debit/reduction to accumulated other comprehensive income.

(b) Includes $

impact of Accumulated other comprehensive income reclassifications into Interest and other

ncome for net realized gains on available-for-sale securities.

The tax impact of this reclassification was

Basic earnings per share

Diluted earnings per share

Unvested restricted stock excluded from the calculation

of diluted EPS for the

periods ended May 2, 2026

and May 3, 2025 were

, respectively, because the effect of

including them in the

calculation of diluted EPS would have been

antidilutive.

THE CATO CORPORATION

3 unchanged sentences

income (in thousands) for the

three months ended November 2, 2024:

three months ended May 2, 2026:

Changes in Accumulated Other

Comprehensive Income (a)

Comprehensive Income (Loss) (a)

Unrealized Gains

1 unchanged sentence

Available-for-Sale

Beginning Balance at August 3, 2024

Other comprehensive income before

Beginning Balance at January 31, 2026

Other comprehensive income (loss) before

reclassification

1 unchanged sentence

other comprehensive income

Net current-period other comprehensive income

Ending Balance at November 2, 2024

Net current-period other comprehensive income (loss)

Ending Balance at May 2, 2026

(a) All amounts are net-of-tax.

2 unchanged sentences

income (in thousands) for the

nine months ended November 2, 2024:

three months ended May 3, 2025:

Changes in Accumulated Other

Comprehensive Income (a)

Comprehensive Income (Loss) (a)

Unrealized Gains

2 unchanged sentences

Beginning Balance at February 1, 2025

Other comprehensive income before

Other comprehensive income (loss) before

reclassification

1 unchanged sentence

other comprehensive income (b)

Net current-period other comprehensive loss

Ending Balance at November 2, 2024

Net current-period other comprehensive income (loss)

Ending Balance at May 3, 2025

(a) All amounts are net-of-tax.

Amounts in parentheses indicate a debit/reduction to accumulated other comprehensive income.

impact of Accumulated other comprehensive income reclassifications into Interest and other

ncome for net realized gains on available-for-sale securities.

(b) Includes $

impact of Accumulated other comprehensive income reclassifications into Interest and other income for net gains on

available-for-sale securities.

The tax impact of this reclassification was $

2 unchanged sentences

NOTE 4 – FINANCING ARRANGEMENTS:

borrower, and

other domestic

subsidiaries, as

On March 13, 2025, the Company,

as borrower, and certain other

domestic subsidiaries, as borrowers and

guarantors, entered

3 unchanged sentences

subsidiaries,

National Association,

“Lender”), to

asset-based revolving

credit facility

provide funding for ongoing working capital

and general corporate purposes.

The ABL Credit Agreement is committed through

and is secured primarily by inventory and third-

facility (the “ABL

Facility”) in an

The proceeds from

the ABL Facility

be used to provide funding for ongoing working capital and general corporate

The ABL Credit Agreement is

committed through March 2028 and

is secured primarily by inventory

third-party credit

card receivables.

borrowings outstanding

availability under

million before

1 unchanged sentence

million outstanding

reduced borrowing

weighted average

interest rate

at November 1, 2025 due to

outstanding borrowings.

borrowing availability

interest rate under the credit facility

at May 2, 2026 and

January 31, 2026 due to

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 5 – REPORTABLE SEGMENT INFORMATION:

13 unchanged sentences

characteristics,

products, production processes, clients and methods of

distribution.

products, production processes, clients and methods of distribution.

characteristics

6 unchanged sentences

similar manner.

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

a wholly-owned

subsidiary of

not allocate certain corporate expenses to the Credit segment.

The Company’s

President and

Chief Executive

the Company’s

chief operating

decision maker

The structure

above reflects

CODM regularly

decision-making

provides corporate

services, including

finance, information

Company operates

states as of May 2, 2026, principally in the southeastern United States.

The Company offers its own credit

card to its customers and all

credit authorizations, payment processing and

allocate certain corporate expenses to

the Credit segment.

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

the segments’

performance and

therefore not

to either segment.

operations before

which are fully allocated to the retail

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,

budget-to-actual

primarily include

selling, general

and administrative

expenses, depreciation

and interest and

other income.

Assessment and

expenditures are

determined to

support of and based on the

needs of the retail segment;

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.

financial statements

Company’s Annual

Report on Form 10-K for

the fiscal year ended January 31,

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

budget and forecasting

process, as well as

monthly analyses of budget-to-actual

and prior year

administrative

segment assets is reported on the balance sheet as total consolidated

The accounting

those described

Accounting Policies in Note 1 of the consolidated financial statements included in the Company’s

performance based on segment income before income taxes.

NOTE 5 – REPORTABLE SEGMENT INFORMATION

The following schedule summarizes certain segment

1 unchanged sentence

Three Months Ended

November 1, 2025

Cost of goods sold

Selling, general, and administrative (a)

Corporate overhead

Interest and other income

Segment income (loss) before income taxes

Corporate interest and other income

Loss before income taxes

Capital expenditures

Nine Months Ended

November 1, 2025

Cost of goods sold

Selling, general, and administrative (a)

Cost of goods sold (a)

Selling, general, and administrative (b)

Corporate overhead

Interest and other income

Segment income (loss) before income taxes

Interest and other income, net

Segment income before income taxes

Corporate interest and other income

1 unchanged sentence

Capital expenditures

(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.

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 5 – REPORTABLE SEGMENT INFORMATION

Three Months Ended

November 2, 2024

Cost of goods sold

Selling, general, and administrative (a)

Corporate overhead

Interest and other income

Segment income (loss) before income taxes

Corporate interest and other income

Loss before income taxes

Capital expenditures

Nine Months Ended

November 2, 2024

Cost of goods sold

Selling, general, and administrative (a)

Cost of goods sold (a)

Selling, general, and administrative (b)

Corporate overhead

Interest and other income

Segment income (loss) before income taxes

Interest and other income, net

Segment income before income taxes

Corporate interest and other income

Loss before income taxes

Income before income taxes

Capital expenditures

(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.

(a) Cost of goods sold includes merchandise costs, net of

discounts and allowances, buying costs, distribution

costs, occupancy costs, freight, and inventory

Net merchandise costs and in-bound freight

are capitalized as inventory costs.

Buying and distribution

costs include payroll, payroll-related costs

and operating expenses for the buying departments

and distribution center.

Occupancy costs include

rent, real estate taxes, insurance, common area maintenance,

utilities and maintenance for stores and

distribution facilities.

(b) Selling, general, and administrative expense

include corporate and store payroll, related payroll

and benefits, insurance, supplies, advertising, bank and

credit card processing fees.

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 6 – STOCK-BASED COMPENSATION:

directors and key employees.

NOTE 6 – SHARE-BASED COMPENSATION:

forms of equity-based awards,

including restricted stock

and stock options for

grant to officers, directors

key employees.

available for grant under this plan as

of November 1, 2025:

of May 2, 2026:

Options and/or restricted stock initially authorized

Options and/or restricted stock available for grant

Compensation–Stock Compensation

straight-line

Compensation–Stock

amortized to compensation expense on a

straight-line basis over the related vesting periods.

respectively,

unrecognized compensation expense

related to nonvested

restricted stock awards,

weighted-average vesting period of

years, respectively.

total compensation expense

ended November

average vesting

respectively.

compensation expense

respectively.

administrative

compensation activity is

classified as a

component of Selling,

general and administrative

expenses in the

Condensed Consolidated Statements of Income.

The following summary

2 unchanged sentences

unvested restricted stock

the nine months ended

the three months ended May

Weighted Average

Grant Date Fair

Restricted stock awards at February 1, 2025

Restricted stock awards at January 31, 2026

Forfeited or expired

estricted stock awards at November 1, 2025

Restricted stock awards at May 2, 2026

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 6 – STOCK BASED-COMPENSATION (CONTINUED):

NOTE 6 – SHARE-BASED COMPENSATION (CONTINUED):

semi-annual offering

% discount through

payroll deductions.

nine months ended

November 1, 2025

2, 2024, the Company sold

shares to employees at an average discount of $

per share, respectively,

under the Employee

Stock Purchase Plan.

The compensation expense

% discount through payroll deductions.

three months ended May 2, 2026

and May 3, 2025, the

shares to employees

average discount of

respectively, under

Stock Purchase

compensation expense

recognized for

approximately

respectively.

administrative

Income (Loss).

– FAIR VALUE MEASUREMENTS:

4 unchanged sentences

measured at fair value (in thousands)

as of November 1, 2025 and February

as of May 2, 2026 and

January 31, 2026:

Corporate Bonds

Treasury/Agencies Notes and Bonds

Cash Surrender Value of Life Insurance

Commercial Paper

Deferred Compensation

3 unchanged sentences

– FAIR VALUE MEASUREMENTS

February 1, 2025

State/Municipal Bonds

Corporate Bonds

1 unchanged sentence

Cash Surrender Value of Life Insurance

Asset-backed Securities (ABS)

Deferred Compensation

Total Liabilities

maturities which

Treasury/Agencies

contractual maturity of up to

Additionally, at November

Company had deferred

compensation plan assets

deferred compensation

Company’s investment

primarily invested

managed accounts

which range from

Additionally,

recorded within Other assets in the Condensed

Consolidated Balance Sheets.

Level 2 investment

securities include

corporate, state

and municipal bonds

quoted prices may

exchanges for

identical instruments.

principally based

values determined by management with the assistance of a third-party pricing service.

Since quoted prices in

active markets for

Level 2 investment securities include corporate bonds for which quoted prices may not be available on

management with

the assistance

third-party pricing

active markets

identical assets are

not available, these

determined by

service using

observable market information such as quotes from less active markets and/or quoted prices

of securities with

similar characteristics, among other factors.

prices are determined

by the pricing

service using observable

characteristics, among other factors.

Deferred compensation plan

5 unchanged sentences

such factors as the

fair value of the underlying assets and discounted cash flow and are therefore classified within Level 3

fair value of the underlying assets and discounted cash flow and are therefore classified within

Level 3 of the

compensation obligation,

1 unchanged sentence

insurance funds’

designed to mirror mutual funds

and money market funds that are

observable and actively traded.

measured using Level 3 inputs

for the nine months ended November

1, 2025 and the year ended

025 (in thousands):

designed to mirror mutual funds and money

market funds that are observable and

actively traded.

measured using Level 3 inputs for the

three months ended May 2, 2026

and the year ended January 31,

(dollars in thousands):

THE CATO CORPORATION

5 unchanged sentences

Cash Surrender Value

Beginning Balance at February 1, 2025

Beginning Balance at January 31, 2026

Total gains or (losses):

Included in interest and other income (or

changes in net assets)

Ending Balance at November 1, 2025

Included in interest and other income, net (or changes in net assets)

Ending Balance at May 2, 2026

Measurements Using

2 unchanged sentences

Deferred Compensation

Beginning Balance at February 1, 2025

Beginning Balance at January 31, 2026

Total (gains) or losses:

Included in interest and other income (or

changes in net assets)

Ending Balance at November 1, 2025

Included in interest and other income, net (or changes in net assets)

Ending Balance at May 2, 2026

Measurements Using

4 unchanged sentences

Total gains or (losses):

Included in interest and other income (or

changes in net assets)

Ending Balance at February 1, 2025

Included in interest and other income, net (or changes in net assets)

Ending Balance at January 31, 2026

Measurements Using

4 unchanged sentences

Total (gains) or losses:

Included in interest and other income (or

changes in net assets)

nding Balance at February 1, 2025

Included in interest and other income, net (or changes in net assets)

Ending Balance at January 31, 2026

THE CATO CORPORATION

1 unchanged sentence

NOTE 8 – RECENT ACCOUNTING PRONOUNCEMENTS:

In December 2023,

issued ASU 2023-09,

disaggregated

information about

reconciliation as

information on

This guidance

years beginning

after December

business entities.

The Company is currently

in the process of

evaluating the potential impact of

required disclosures

our 2025 Annual Report on Form 10-K.

Statement—Reporting

periods beginning January 30, 2028.

Early adoption is permitted.

Company is currently assessing the

impact that the adoption of ASU 2025-06 will have on our consolidated financial

Comprehensive

Income—Expense

Disaggregation

Disclosures (Subtopic

Disaggregation of

Income Statement

disaggregated

guidance is effective for annual periods beginning after December 15, 2026 and for interim periods within

fiscal years beginning after December 15, 2027, with early adoption permitted.

The Company is currently

financial statements and related disclosures.

evaluating the

potential impact

consolidated financial

statements and related disclosures.

NOTE 9 – INCOME TAXES:

effective tax rate

%) for the first

nine months of fiscal 2024.

Income tax benefit for the

versus income

Beautiful Bill

Company considered the impact of the

OBBBA in the second quarter of

The changes do not

have a material impact

on the Company’s

effective tax rate.

The Company continues to

monitor impacts

moving forward.

was primarily

due to lower foreign income taxes.

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 10 – COMMITMENTS AND CONTINGENCIES:

13 unchanged sentences

available, management

pending litigation

material adverse

1 unchanged sentence

financial statements.

inherent uncertainties

such matters,

materially and

adversely affect

financial condition,

operations and

eemed probable and reasonably estimable.

uncertainties

materially and adversely affect the Company’s

financial condition, results of operations and cash flows in

probable and reasonably estimable.

THE CATO CORPORATION

13 unchanged sentences

returns based

transaction are

classified as

Other revenue

costs related

customers (billed

and accrued) are classified as Cost of goods sold.

proprietary credit

estimated rewards

Amounts related

shipping product

(billed and accrued) are classified as Cost of goods sold.

own proprietary

to customers.

subsidiaries.

respectively,

ended November 2, 2024, respectively.

Sales purchased on the Company’s

proprietary credit card for the

respectively,

wholly-owned subsidiaries.

receivables are

estimated customer credit losses of $

for the periods ended May 2, 2026 and May 3,

respectively,

sales purchased

proprietary credit

million for the periods ended May 2, 2026 and May 3, 2025, respectively.

customers (in thousands):

Balance as of

November 1, 2025

February 1, 2025

January 31, 2026

Proprietary Credit Card Receivables, net

ift Card Liability

Gift Card Liability

THE CATO CORPORATION

1 unchanged sentence

NOTE 12 – LEASES:

arrangement is

leases for stores, offices,

warehouse space and equipment.

have remaining lease terms of

which include options to

extend the lease term

Company determines

warehouse space

and equipment.

have remaining

, some of which include options to

extend the lease term for

up to five years

3 unchanged sentences

right-of-use assets

lease agreements do not contain any material residual value guarantees or

material restrictive covenants.

lease agreements do not contain any material residual value guarantees or material

restrictive covenants.

incremental borrowing rate

the information available

commencement date

determining the present value of lease payments.

1 unchanged sentence

Three Months Ended

November 1, 2025

November 2, 2024

Operating lease cost

Variable lease cost (a)

(a) Primarily related to monthly percentage rent for stores not presented on the balance sheet.

Nine Months Ended

November 1, 2025

November 2, 2024

Operating lease cost

Variable lease cost (a)

(a) Primarily related to monthly percentage rent for stores not presented on the balance sheet.

lease cost (a)

(a) Primarily relates to monthly percentage rent for stores not presented on the balance sheet.

THE CATO CORPORATION

9 unchanged sentences

Three Months Ended

November 1, 2025

November 2, 2024

Cash paid for amounts included in the measurement of lease liabilities

1 unchanged sentence

Right-of-use assets obtained in exchange for lease obligations, net of rent violations

Nine Months Ended

November 1, 2025

November 2, 2024

Cash paid for amounts included in the measurement of lease liabilities

Non-cash activity:

Right-of-use assets obtained in exchange for lease obligations, net of rent violations

Weighted-average

November 1, 2025

November 2, 2024

Weighted-average remaining lease term

Weighted-average discount rate

leases are as follows (in thousands):

As of May 2, 2026, the maturities of lease liabilities by fiscal year for the Company’s

operating leases are

as follows (in thousands):

Total lease payments

1 unchanged sentence

Present value of lease liabilities

(a) Excluding the nine months ended November 1, 2025

(a) Excluding the 3 months ended May 2, 2026.

THE CATO CORPORATION

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements