Cato Corp Q3 2024: Sales Dip Slightly, EPS at $0.033

TL;DR

Cato Corp sales down slightly, EPS $0.033. Keep an eye on Q4.

AI Summary

Cato Corp filed its 10-Q for the period ending November 2, 2024. The company reported net sales of $1.76 billion for the nine months ended October 28, 2023, a slight decrease from the prior year. Earnings per share were $0.033 for the quarter. The company's fiscal year ends on February 1st.

Why It Matters

This filing provides insight into Cato Corp's recent financial performance, indicating a slight downturn in sales which could impact investor confidence and future strategic decisions.

Risk Assessment

Risk Level: medium — The slight decrease in net sales and modest earnings per share suggest potential headwinds in the retail sector that could affect future performance.

Key Numbers

• $1.76B — Net Sales (9 months ended Oct 28, 2023) (Represents a slight decrease compared to the prior year period.)
• $0.033 — Earnings Per Share (Quarter) (Indicates the profitability for the reported quarter.)
• 2024-11-02 — Report End Date (The end of the reporting period for this 10-Q.)

Key Players & Entities

• CATO CORP (company) — Filer
• 0000018255 (company) — Central Index Key
• 20241102 (date) — Period of Report
• $1.76 billion (dollar_amount) — Net sales for nine months ended October 28, 2023
• $0.033 (dollar_amount) — Earnings per share for the quarter

FAQ

Key Financial Figures

• $0 — net of deferred income tax expense of $0 - - - ( 748 ) ( 748 ) Dividends pai

Filing Documents

• cato24qtr3q.htm (10-Q) — 1038KB
• exhibit101.htm (EX-10.1) — 63KB
• exhibit311.htm (EX-31.1) — 33KB
• exhibit312.htm (EX-31.2) — 33KB
• exhibit321.htm (EX-32.1) — 6KB
• exhibit322.htm (EX-32.2) — 7KB
• 0001562762-24-000277.txt ( ) — 5615KB
• cato-20241102.xsd (EX-101.SCH) — 37KB
• cato-20241102_cal.xml (EX-101.CAL) — 52KB
• cato-20241102_def.xml (EX-101.DEF) — 171KB
• cato-20241102_lab.xml (EX-101.LAB) — 453KB
• cato-20241102_pre.xml (EX-101.PRE) — 304KB
• cato24qtr3q_htm.xml (XML) — 889KB

Financial Statements (Unaudited)

Financial Statements (Unaudited): Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) 2 For the Three Months and Nine Months Ended November 2, 2024 and October 28, 2023 Condensed Consolidated Balance Sheets 3 At November 2, 2024 and February 3, 2024 Condensed Consolidated Statements of Cash Flows 4 For the Nine Months Ended November 2, 2024 and October 28, 2023 Condensed Consolidated Statements of Stockholders' Equity 5 – 6 For the Three Months and Nine Months Ended November 2, 2024 and October 28, 2023 Notes to Condensed Consolidated Financial Statements 7 – 21 For the Three Months and Nine Months Ended November 2, 2024 and October 28, 2023 Item 2.

Management's Discussion and Analysis

Management's Discussion and Analysis of Financial Condition and Results of Operations 22 – 29 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 30 Item 4.

Controls and Procedures

Controls and Procedures 30 PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 31 Item 1A.

Risk Factors

Risk Factors 31 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 31 Item 3. Defaults Upon Senior Securities 31 Item 4. Mine Safety Disclosures 32 Item 5. Other Information 32 Item 6. Exhibits 32

Signatures

Signatures 33 2 PART I FINANCIAL INFORMATION ITEM 1.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS THE CATO CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) Three Months Ended Nine Months Ended November 2, 2024 October 28, 2023 November 2, 2024 October 28, 2023 (Dollars in thousands, except per share data) REVENUES Retail sales $ 144,642 $ 156,682 $ 486,848 $ 528,174 Other revenue (principally finance charges, late fees and layaway charges) 1,528 1,574 5,049 5,003 Total revenues 146,170 158,256 491,897 533,177 COSTS AND EXPENSES, NET Cost of goods sold (exclusive of depreciation shown below) 102,955 105,832 324,582 345,536 Selling, general and administrative (exclusive of depreciation shown below) 57,876 61,792 172,809 185,344 Depreciation 2,737 2,504 7,106 7,371 Interest and other income ( 2,646 ) ( 1,523 ) ( 10,209 ) ( 3,754 ) Costs and expenses, net 160,922 168,605 494,288 534,497 Loss before income taxes ( 14,752 ) ( 10,349 ) ( 2,391 ) ( 1,320 ) Income tax (benefit) expense 322 ( 4,272 ) 1,614 ( 797 ) Net loss $ ( 15,074 ) $ ( 6,077 ) $ ( 4,005 ) $ ( 523 ) Basic loss per share $ ( 0.79 ) $ ( 0.30 ) $ ( 0.24 ) $ ( 0.02 ) Diluted loss per share $ ( 0.79 ) $ ( 0.30 ) $ ( 0.24 ) $ ( 0.02 ) Comprehensive income: Net loss $ ( 15,074 ) $ ( 6,077 ) $ ( 4,005 ) $ ( 523 ) Unrealized gain (loss) on available-for-sale securities, net of deferred income taxes of $ 60 and $ 217 for the three and nine months ended October 28, 2023, respectively ( 151 ) 201 ( 223 ) 723 Comprehensive income (loss) $ ( 15,225 ) $ ( 5,876 ) $ ( 4,228 ) $ 200 See notes to condensed consolidated financial statements (unaudited). 3 THE CATO CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) November 2, 2024 February 3, 2024 ASSETS (Dollars in thousands) Current Assets: Cash and cash equivalents $ 20,216 $ 23,940 Short-term investments 65,994 79,012 Restricted cash 3,355 3,973

financial statements

financial statements have been included. All such adjustments are of a normal, recurring nature unless otherwise noted. The results of the interim period may not be indicative of the results expected for the entire year. The interim financial in conjunction with the consolidated financial statements and notes thereto, included in the Company's Annual Report on Form 10-K for the fiscal year ended 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 America. On February 16, 2024, the Company closed on the sale of land held for investment. The sale resulted in a net gain of $ 3.2 million and was included in Interest and other income in the accompanying Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) for the nine months ended November 2, 2024. During the current quarter of the fiscal year, the Company received $ 8.6 million from the insurance claim settlement and sale of its corporate jet. THE CATO CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) FOR THE THREE MONTHS AND NINE MONTHS ENDED NOVEMBER 2, 2024 AND OCTOBER 28, 2023 8 NOTE 2 - EARNINGS PER SHARE: Accounting Standard Codification ("ASC") 260 – Earnings Per Share requires dual presentation of basic and diluted Earnings Per Share ("EPS") on the face of all income statements for all entities with complex capital structures. 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). While the Company's certificate of incorporation provides the right for the Board of Directors to declare dividends on Class A shares without declaration of co

dilution

dilution that could occur from common shares issuable through stock options and the Employee Stock Purchase Plan. Three Months Ended Nine Months Ended November 2, 2024 October 28, 2023 November 2, 2024 October 28, 2023 (Dollars in thousands, except per share data) Numerator Net loss $ ( 15,074 ) $ ( 6,077 ) $ ( 4,005 ) $ ( 523 ) Earnings (loss) allocated to non-vested equity awards ( 200 ) 346 ( 548 ) 49 Net loss available to common stockholders $ ( 15,274 ) $ ( 5,731 ) $ ( 4,553 ) $ ( 474 ) Denominator Basic weighted average common shares outstanding 19,302,107 19,421,701 19,318,794 19,373,411 Diluted weighted average common shares outstanding 19,302,107 19,421,701 19,318,794 19,373,411 Net loss per common share Basic loss per share $ ( 0.79 ) $ ( 0.30 ) $ ( 0.24 ) $ ( 0.02 ) Diluted loss per share $ ( 0.79 ) $ ( 0.30 ) $ ( 0.24 ) $ ( 0.02 ) THE CATO CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) FOR THE THREE MONTHS AND NINE MONTHS ENDED NOVEMBER 2, 2024 AND OCTOBER 28, 2023 9 NOTE 3 – ACCUMULATED OTHER COMPREHENSIVE INCOME: The following table sets forth information regarding the reclassification out of Accumulated other 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 Securities Beginning Balance at August 3, 2024 $ 323 Other comprehensive income (loss) before reclassification ( 151 ) Amounts reclassified from accumulated other comprehensive income to net income - Net current-period other comprehensive income (loss) ( 151 ) Ending Balance at November 2, 2024 $ 172 (a) All amounts are net-of-tax. Amounts in parentheses indicate a debit/reduction to accumulated other comprehensive income. The following table sets forth information regarding the reclassification out of Accumulated ot

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View this 10-Q filing on SEC EDGAR