What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-05-29 compared with 2024-11-26 · 293 added, 462 removed, 371 unchanged (67% 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

Selling, general and administrative (exclusive of

Cost of goods sold (exclusive of depreciation shown below)

Selling, general and administrative (exclusive of depreciation

Interest and other income

Costs and expenses, net

Loss before income taxes

Income tax (benefit) expense

Basic loss per share

Diluted loss per share

Income before income taxes

Income tax expense

Basic earnings per share

Diluted earnings per share

Comprehensive income:

Unrealized gain (loss) on available-for-sale securities, net of

deferred income taxes of $

the three and nine months ended October 28, 2023,

Comprehensive income (loss)

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

of deferred income taxes of $

for each of the three months

ended May 3, 2025 and May 4, 2024

Comprehensive income

See notes to condensed consolidated financial statements (unaudited).

1 unchanged sentence

CONDENSED CONSOLIDATED BALANCE SHEETS

November 2, 2024

February 1, 2025

5 unchanged sentences

Accounts receivable, net of allowance for customer credit losses of

at November 2, 2024 and February 3, 2024, respectively

at May 3, 2025 and February 1, 2025, respectively

Merchandise inventories

7 unchanged sentences

Accrued expenses

Accrued employee benefits and bonus

Accrued bonus and benefits

Accrued income taxes

Current lease liability

8 unchanged sentences

shares authorized;

issued at November 2, 2024 and February 3, 2024, respectively

shares issued

at May 3, 2025 and February 1, 2025, respectively

Convertible Class B common stock, $

1 unchanged sentence

shares authorized;

issued at November 2, 2024 and February 3, 2024

shares issued at May 3, 2025 and February 1, 2025

Additional paid-in capital

7 unchanged sentences

OF CASH FLOWS

Nine Months Ended

November 2, 2024

October 28, 2023

Three Months Ended

(Dollars in thousands)

Operating Activities:

Adjustments to reconcile net loss to net cash (used in) provided

by operating activities:

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

Provision for customer credit losses

Purchase premium and discount accretion of investments

Purchase premium and premium amortization of investments

Gain on sale of assets held for investment

Share-based compensation

Deferred income taxes

Loss on disposal of property and equipment

Changes in operating assets and liabilities which provided

(Gain) Loss on disposal of property and equipment

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

Accounts receivable

4 unchanged sentences

Accounts payable, accrued expenses and other liabilities

Net cash (used in) provided by operating activities

Net cash provided by operating activities

Investing Activities:

8 unchanged sentences

Proceeds from employee stock purchase plan

Net cash used in financing activities

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

Net cash used by financing activities

Net increase in cash, cash equivalents, and restricted cash

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

8 unchanged sentences

Stockholders'

Income (Loss)

(Dollars in thousands, except per share data)

1 unchanged sentence

Comprehensive income:

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

deferred income tax expense of $0

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 gains on available-for-sale securities, net of

deferred income tax expense of $0

Dividends paid ($

Class A common stock sold through employee stock purchase

Share-based compensation expense

Balance — August 3, 2024

Comprehensive income:

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

deferred income tax expense of $0

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

See notes to condensed consolidated financial statements (unaudited).

THE CATO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS

OF STOCKHOLDERS’ EQUITY

Comprehensive

Stockholders'

Income (Loss)

(Dollars in thousands, except per share data)

Balance — January 28, 2023

Balance — February 3, 2024

Comprehensive income:

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

deferred income tax expense of $

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

income tax benefit of $

Dividends paid ($

3 unchanged sentences

Repurchase and retirement of treasury shares

Balance — April 29, 2023

Comprehensive income:

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

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 — July 29, 2023

Comprehensive income:

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

deferred income tax expense of $

Dividends paid ($

Class A common stock sold through employee stock purchase

Share-based compensation expense

Balance — October 28, 2023

Balance — May 4, 2024

See notes to condensed consolidated financial statements (unaudited).

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND NINE MONTHS ENDED

NOVEMBER 2, 2024 AND

OCTOBER 28, 2023

NOTE 1 - GENERAL

November 2, 2024

and October 28,

2023 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

otherwise noted.

interim period

be indicative

results expected

The condensed consolidated

financial statements as

the three months

3, 2025 and May 4, 2024 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

February 3, 2024.

Amounts as of February 3, 2024 have been derived from the audited balance sheet, but

do not include all disclosures required by

accounting principles generally accepted in the United States of

On February 16, 2024, the Company closed on the sale of land held for investment.

of February 1,

2025 have been

derived from the

audited annual

statements, but

disclosures required by

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

the accompanying

Consolidated Statements of Income

(Loss) and Comprehensive

Income (Loss) for

the nine months

November 2, 2024.

During the current quarter of the fiscal year,

the Company received $

million from the insurance claim

settlement and sale of its corporate jet.

Consolidated Statements of Income and Comprehensive Income

for the period ended May 4, 2024.

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND NINE MONTHS ENDED

NOVEMBER 2, 2024 AND

OCTOBER 28, 2023

NOTE 2 - EARNINGS PER SHARE:

7 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.

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)

Earnings (loss) allocated to non-vested equity awards

Net loss available to common stockholders

Earnings allocated to non-vested equity awards

Net earnings available to common stockholders

Basic weighted average common shares outstanding

Diluted weighted average common shares outstanding

Net loss per common share

Basic loss per share

Diluted loss per share

Net income per common share

Basic earnings per share

Diluted earnings per share

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND NINE MONTHS ENDED

NOVEMBER 2, 2024 AND

OCTOBER 28, 2023

NOTE 3 – ACCUMULATED OTHER COMPREHENSIVE INCOME:

reclassification

comprehensive income (in thousands) for the

three months ended November 2, 2024:

Changes in Accumulated Other

Comprehensive Income (a)

Unrealized Gains

and (Losses) on

Available-for-Sale

Beginning Balance at August 3, 2024

Other comprehensive income (loss) before

reclassification

Amounts reclassified from accumulated

other comprehensive income to net income

Net current-period other comprehensive income (loss)

Ending Balance at November 2, 2024

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

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

reclassification

comprehensive income (in thousands) for the

nine months ended November 2, 2024:

comprehensive income (loss) (in thousands) for

the three months ended May 3,

Changes in Accumulated Other

Comprehensive Income (a)

Comprehensive Income (Loss) (a)

Unrealized Gains

5 unchanged sentences

Amounts reclassified from accumulated

other comprehensive income to net income (b)

Net current-period other comprehensive income (loss)

Ending Balance at November 2, 2024

(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

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

The tax impact of this reclassification was $

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND NINE MONTHS ENDED

NOVEMBER 2, 2024 AND

OCTOBER 28, 2023

NOTE 3 – ACCUMULATED OTHER COMPREHENSIVE INCOME

reclassification

comprehensive income (in thousands) for the

three months ended October 28, 2023:

Changes in Accumulated Other

Comprehensive Income (a)

Unrealized Gains

and (Losses) on

Available-for-Sale

Beginning Balance at July 29, 2023

Other comprehensive income (loss) before

reclassification

Amounts reclassified from accumulated

other comprehensive income to net income (b)

other comprehensive income (b)

Net current-period other comprehensive income (loss)

Ending Balance at October 28, 2023

Ending Balance at May 3, 2025

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

5 unchanged sentences

reclassification

comprehensive income (in thousands) for the

nine months ended October 28, 2023:

comprehensive income (loss) (in thousands) for

the three months ended May 4,

Changes in Accumulated Other

Comprehensive Income (a)

Comprehensive Income (Loss) (a)

Unrealized Gains

1 unchanged sentence

Available-for-Sale

Beginning Balance at January 28, 2023

Beginning Balance at February 3, 2024

Other comprehensive income (loss) before

1 unchanged sentence

Amounts reclassified from accumulated

other comprehensive income to net income (b)

other comprehensive income (b)

Net current-period other comprehensive income (loss)

Ending Balance at October 28, 2023

Ending Balance at May 4, 2024

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

2 unchanged sentences

impact of Accumulated other comprehensive income reclassifications into Interest and other

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

income for net gains on available-for-sale securities.

The tax impact of this reclassification was $

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND NINE MONTHS ENDED

NOVEMBER 2, 2024 AND

OCTOBER 28, 2023

NOTE 4 – FINANCING ARRANGEMENTS:

At November 2,

2024, the Company had

a revolving credit agreement,

which provides for borrowings of

million, less

revocable letters

purchase commitments,

revolving credit

definition used

in calculating

the Company’s

minimum EBITDAR

November 1, 2024, the Company

amended the revolving credit agreement

to lower the minimum EBITDAR

corresponding

coverage ratio in exchange

for a secured position

in any future borrowings.

For the quarter ended

the amendments,

compliance with

availability, as of November 2, 2024.

The weighted average interest rate under

the credit facility was

November 2, 2024 due to

On March 13, 2025, the Company,

as borrower, and certain other

domestic subsidiaries, as borrowers and

guarantors, entered

Credit Agreement

Credit Agreement”)

loan documents,

subsidiaries,

facility (the “ABL

Facility”) in an

The proceeds from

the ABL Facility

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

Credit Agreement

secured primarily

third-party credit

card receivables.

borrowings outstanding

availability under

million before

giving effect

million outstanding

borrowing availability to

average interest rate

credit facility was

at May 3, 2025 due to

outstanding borrowings.

18 unchanged sentences

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 sold to customers in

fashion specialty

retail stores

principally in the southeastern United States.

The Company offers its own credit card to its customers and

authorizations,

owned subsidiaries of the Company.

customers in a

similar manner.

Company operates

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

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

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

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND NINE MONTHS ENDED

NOVEMBER 2, 2024 AND

OCTOBER 28, 2023

primarily include

selling, general

and administrative expenses,

determined to

assets are not presented in

the tables below.

financial statements

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 CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 5 – REPORTABLE SEGMENT INFORMATION

2 unchanged sentences

Three Months Ended

Nine Months Ended

November 2, 2024

Interest and other income

Cost of goods sold

Selling, general, and administrative (a)

Corporate overhead

Interest and other income

Income (loss) before

Capital expenditures

Income (loss) before income taxes

Corporate interest and other income

Income (loss) before income taxes

Capital expenditures

Three Months Ended

Nine Months Ended

October 28, 2023

Interest and other income

Cost of goods sold

Selling, general, and administrative (a)

Corporate overhead

Interest and other income

Income (loss) before

Capital expenditures

Income (loss) before income taxes

Corporate interest and other income

Income (loss) before income taxes

Capital expenditures

Total assets as of November 2, 2024

Total assets as of February 3, 2024

The Company evaluates segment performance based on

income before income taxes.

The Company does not

allocate certain corporate expenses or

income taxes to the credit segment.

The following schedule summarizes the direct expenses

of the credit segment, which are

reflected in Selling,

general and administrative expenses (in

Three Months Ended

Nine Months Ended

Other expenses

Total expenses

(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

FOR THE THREE MONTHS AND NINE MONTHS ENDED

NOVEMBER 2, 2024 AND

OCTOBER 28, 2023

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 2, 2024:

of May 3, 2025:

Options and/or restricted stock initially authorized

1 unchanged sentence

Compensation–Stock Compensation

straight-line

respectively,

unrecognized compensation expense

related to nonvested

restricted stock awards,

weighted-average vesting period of

years, respectively.

total compensation expense

ended November

amortized to compensation expense on a

straight-line basis over the related vesting periods.

respectively,

average vesting

respectively.

administrative

expense during

the three months ended May 3, 2025 was $

compared to a benefit of $

for the three months

administrative expenses in the Condensed Consolidated Statements of Income.

The following summary

2 unchanged sentences

unvested restricted stock

during the nine months ended November 2, 2024:

the three months ended May

Weighted Average

2 unchanged sentences

Forfeited or expired

Restricted stock awards at November 2, 2024

Restricted stock awards at May 3, 2025

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND NINE MONTHS ENDED

NOVEMBER 2, 2024 AND

OCTOBER 28, 2023

NOTE 6 – STOCK BASED-COMPENSATION (CONTINUED):

NOTE 6 – SHARE-BASED COMPENSATION (CONTINUED):

semi-annual offering

% discount through payroll deductions.

During the nine

months ended November 2, 2024

and October 28,

per share, respectively,

under the Employee

Stock Purchase Plan.

The compensation expense

three months ended May 3, 2025

and May 4, 2024, the

shares to employees

average discount of

respectively, under

Stock Purchase

compensation expense

recognized for

approximately

respectively.

component of Selling, general and administrative expenses.

administrative

– FAIR VALUE MEASUREMENTS:

4 unchanged sentences

measured at fair value (in thousands)

as of November 2, 2024 and February

November 2, 2024

as of May 3, 2025 and

February 1, 2025:

State/Municipal Bonds

7 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND NINE MONTHS ENDED

NOVEMBER 2, 2024 AND

OCTOBER 28, 2023

February 3, 2024

– FAIR VALUE MEASUREMENTS

State/Municipal Bonds

3 unchanged sentences

Asset-backed Securities (ABS)

Corporate Equities

Deferred Compensation

Total Liabilities

The Company’s investment portfolio

was primarily invested in

corporate bonds and

debt securities held in managed accounts

with underlying ratings of A

or better at May 3, 2025

and corporate

asset-backed securities

Treasury/Agencies

accounts with

underlying ratings

February 3, 2024.

The state, municipal and corporate bonds have contractual maturities which range from

Treasury/Agencies notes and bonds have contractual maturities which range from

available-for-sale

comprehensive income.

deferred compensation

At November 2,

2024, the Company

had deferred compensation

plan assets of

During the nine

months ended November

Company sold its

corporate equities.

these assets are recorded within Other

assets in the Condensed Consolidated Balance

Level 1 category securities are measured

at fair value using quoted active

market prices.

Level 2 investment

active exchanges for identical instruments.

Their fair value is principally based on market values determined

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

Since quoted prices in active markets for

identical assets are

not available, these

prices are determined

by the pricing

service using observable

characteristics, among other factors.

maturities which range from

Additionally,

recorded within Other assets in the Condensed

Consolidated Balance Sheets.

available on active exchanges for identical

Their fair value is principally based on market

determined by management with the assistance

of a third-party pricing service.

Since quoted prices in active

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

similar characteristics, among other factors.

Deferred compensation plan

3 unchanged sentences

policies are valued

based on the cash surrender value of the insurance contract, which is determined based on

such factors as the

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

based on the cash surrender value of the insurance contract, which is determined based

on such factors as the

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

Level 3 of the

compensation obligation,

4 unchanged sentences

actively traded.

measured using Level 3 inputs for the

three months ended May 3, 2025

and the year ended February 1,

(dollars in thousands):

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND NINE MONTHS ENDED

NOVEMBER 2, 2024 AND

OCTOBER 28, 2023

measured using Level 3 inputs

for the nine months ended November

2, 2024 and the year ended

(in thousands):

– FAIR VALUE MEASUREMENTS

Measurements Using

4 unchanged sentences

Total gains or (losses):

Included in interest and other income (or

changes in net assets)

Ending Balance at November 2, 2024

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

Ending Balance at May 3, 2025

Measurements Using

4 unchanged sentences

Total (gains) or losses:

Included in interest and other income (or

changes in net assets)

Ending Balance at November 2, 2024

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND NINE MONTHS ENDED

NOVEMBER 2, 2024 AND

OCTOBER 28, 2023

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

Ending Balance at May 3, 2025

Measurements Using

2 unchanged sentences

Cash Surrender Value

Beginning Balance at January 28, 2023

Beginning Balance at February 3, 2024

Total gains or (losses):

Included in interest and other income (or

changes in net assets)

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

Ending Balance at February 1, 2025

3 unchanged sentences

Deferred Compensation

Beginning Balance at January 28, 2023

Beginning Balance at February 3, 2024

Total (gains) or losses:

Included in interest and other income (or

changes in net assets)

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

Ending Balance at February 1, 2025

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND NINE MONTHS ENDED

NOVEMBER 2, 2024 AND

OCTOBER 28, 2023

NOTE 8 – RECENT ACCOUNTING PRONOUNCEMENTS:

Disclosures,”

retrospectively to all prior periods presented

in the financial statements.

The Company is currently in the

evaluating the

potential impact

consolidated financial

statements and related disclosures.

Disclosures,”

disaggregated

5 unchanged sentences

15, 2024 for all public

business entities, with early adoption and retrospective application

business entities, with early adoption and

retrospective application permitted.

of evaluating

7 unchanged sentences

disaggregated

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

evaluating the

potential impact

consolidated financial statements

and related disclosures.

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.

NOTE 9 – INCOME TAXES:

effective tax

first nine months

of fiscal 2023.

Income tax expense

The Company had an effective tax rate for the

first quarter of 2025 of

% compared to an effective tax

% for the first

months increased to $

million in fiscal 2024 from an

income tax benefit of $

million in fiscal 2023.

primarily due

valuation allowance

assets attributable

federal net operating

loss carryforwards recorded

in the fourth

quarter of 2024.

and a smaller release of reserves for uncertain tax positions.

NOTE 10 – COMMITMENTS AND CONTINGENCIES:

The Company is, from time to time, involved in routine litigation incidental to the conduct of its business,

litigation instituted by persons injured upon premises under the Company’s control, litigation with respect

Income tax expense for the

quarter increased to $

million in 2024.

The increase in tax expense was primarily due to increases in foreign and

state income taxes.

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND NINE MONTHS ENDED

NOVEMBER 2, 2024 AND

OCTOBER 28, 2023

discrimination

NOTE 10 – COMMITMENTS AND CONTINGENCIES:

The Company is, from time to time, involved in routine litigation incidental to the conduct of its business,

litigation instituted

premises under

litigation with

discrimination and

present or former employees.

11 unchanged sentences

financial statements.

inherent uncertainties

adverse outcome

materially and

adversely affect

financial condition,

operations and

deemed 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.

NOTE 11 – REVENUE RECOGNITION:

19 unchanged sentences

to customers.

Company’s wholly-owned

subsidiaries.

of the credit

card receivables are

Company estimated

respectively,

wholly-owned subsidiaries.

receivables are

estimated customer credit losses of $

for the periods ended May 3, 2025 and May 4,

2024, respectively,

Sales purchased

proprietary credit

and nine months ended November 2, 2024 were $

million and $

million, respectively, compared to

on sales purchased

by the Company’s

proprietary credit card of

million and $

million for the three and nine months ended October 28, 2023,

respectively.

million for the periods ended May 3, 2025 and May 4, 2024, respectively.

customers (in thousands):

Balance as of

November 2, 2024

February 1, 2025

3 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND NINE MONTHS ENDED

NOVEMBER 2, 2024 AND

OCTOBER 28, 2023

NOTE 12 – LEASES:

Company determines

arrangement is

stores, offices,

warehouse space

and equipment.

Its leases have

remaining lease terms

years based on

the estimated likelihood

include options to

extend the lease

, and some include options to terminate the lease

have remaining

, some of which include options to

extend the lease term for

up to five years

, and some of

within one year

The Company considers

determining the

establish its

right-of-use assets

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

restrictive covenants.

2 unchanged sentences

Three Months Ended

November 2, 2024

October 28, 2023

Operating lease cost (a)

lease cost (b)

(a) Includes right-of-use asset amortization of ($

) million and ($

) million for the three months ended November 2, 2024 and

October 28, 2023, respectively.

(b) Primarily related to monthly percentage rent for stores not presented on the condensed consolidated balance sheets.

Nine Months Ended

November 2, 2024

October 28, 2023

Operating lease cost (a)

lease cost (b)

(a) Includes right-of-use asset amortization of ($

) million and ($

) million for the nine months ended November 2, 2024 and

October 28, 2023, respectively.

(b) Primarily related to monthly percentage rent for stores not presented on the condensed consolidated balance sheets.

Operating lease cost

lease cost (a)

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

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND NINE MONTHS ENDED

NOVEMBER 2, 2024 AND

OCTOBER 28, 2023

NOTE 12 – LEASES (CONTINUED):

Supplemental cash flow

6 unchanged sentences

Three Months Ended

November 2, 2024

October 28, 2023

Cash paid for amounts included in the measurement of lease liabilities

Non-cash activity:

Right-of-use assets obtained in exchange for lease obligations

Nine Months Ended

November 2, 2024

October 28, 2023

Cash paid for amounts included in the measurement of lease liabilities

Non-cash activity:

Right-of-use assets obtained in exchange for lease obligations

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

Weighted-average

November 2, 2024

October 28, 2023

Weighted-average remaining lease term

Weighted-average discount rate

As of May 3, 2025, 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 2, 2024

(a) Excluding the 3 months ended May 3, 2025.

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