CATO CORPCATO
CATO CORP Segments Disclosure
13. Reportable Segment Information:
The Company has determined that it has
four
Reporting (“ASC 280”), including Cato, It’s Fashion, Versona and Credit. The Company has
two
segments: Retail and Credit. The Company has aggregated its
three
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 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 segment income (loss) 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.
Accounting Policies in Note 1. The Company evaluates segment performance based on segment income
before income taxes.
The following schedule summarizes certain segment information (in thousands):
`
Fiscal 2025
Retail
Credit
Total
Total Revenues
$
651,158
$
2,654
$
653,812
Cost of goods sold (a)
431,551
-
431,551
Selling, general, and administrative (b)
157,738
1,617
159,355
Corporate overhead
67,107
-
67,107
Depreciation
9,986
-
9,986
Interest and other income
(375)
(1,148)
(1,523)
Segment income (loss) before income taxes
$
(14,849)
$
2,185
$
(12,664)
Corporate interest and other income
(5,164)
Loss before income taxes
$
(7,500)
Capital expenditures
$
3,763
$
-
$
3,763
Fiscal 2024
Retail
Credit
Total
Total Revenues
$
647,110
$
2,696
$
649,806
Cost of goods sold (a)
436,440
-
436,440
Selling, general, and administrative (b)
162,367
1,630
163,997
Corporate overhead
67,492
-
67,492
Depreciation
9,817
-
9,817
Interest and other income
(410)
(1,162)
(1,572)
Segment income (loss) before income taxes
$
(28,596)
$
2,228
$
(26,368)
Corporate interest and other income
(10,255)
Loss before income taxes
$
(16,113)
Capital expenditures
$
7,872
$
-
$
7,872
Fiscal 2023
Retail
Credit
Total
Total Revenues
$
705,419
$
2,640
$
708,059
Cost of goods sold (a)
464,313
-
464,313
Selling, general, and administrative (b)
176,205
1,632
177,837
Corporate overhead
74,940
-
74,940
Depreciation
9,871
-
9,871
Interest and other income
(267)
(737)
(1,004)
Segment income (loss) before income taxes
$
(19,643)
$
1,745
$
(17,898)
Corporate interest and other income
(4,097)
Loss before income taxes
$
(13,801)
Capital expenditures
$
12,532
$
-
$
12,532
(a) Refer to Note 1 for additional information on the components of Cost of goods sold.
(b) Selling, general, and administrative expense include corporate and store payroll, related payroll taxes
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 25, 2026 | Showing above |
| 2025 | Mar 31, 2025 | |
| 2024 | Mar 27, 2024 | |
| 2023 | Mar 23, 2023 | |
| 2022 | Mar 23, 2022 | |
| 2021 | Mar 29, 2021 | |
| 2020 | Mar 27, 2020 | |
| 2019 | Mar 27, 2019 | |
| 2018 | Mar 27, 2018 | |
| 2017 | Mar 23, 2017 | |
| 2016 | Mar 24, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.