# EDGAR Filing Document

**Accession Number:** 0000018255
**File Stem:** 0001562762-23-000124
**Filing Date:** 2023-3
**Character Count:** 15004
**Document Hash:** 4aa4fe408e916b0e25b70c0a57d21374
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001562762-23-000124.hdr.sgml**: 20230320

**ACCESSION NUMBER**: 0001562762-23-000124

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20230316

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230320

**DATE AS OF CHANGE**: 20230320

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CATO CORP
- **CENTRAL INDEX KEY:** 0000018255
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-WOMEN'S CLOTHING STORES [5621]
- **IRS NUMBER:** 560484485
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0129

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-31340
- **FILM NUMBER:** 23745857

**BUSINESS ADDRESS:**
- **STREET 1:** 8100 DENMARK ROAD
- **CITY:** CHARLOTTE
- **STATE:** NC
- **ZIP:** 28273-5975
- **BUSINESS PHONE:** 7045517352

**MAIL ADDRESS:**
- **STREET 1:** 8100 DENMARK ROAD
- **CITY:** CHARLOTTE
- **STATE:** NC
- **ZIP:** 28273-5975

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** CATO STORES INC
- **DATE OF NAME CHANGE:** 19701002

?xml version="1.0" encoding="UTF-8"? cato-20230316

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

450 Fifth Street NW

Washington, D.C. 29549

#### Form

#### 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):

March 16, 2023

#### THE CATO CORPORATION
(Exact Name of Registrant as Specified in Its Charter)

Delaware

1-31340

56-0484485

(State or Other Jurisdiction

of Incorporation

(Commission

File Number)

(IRS Employer

Identification No.)

8100 Denmark Road

,

Charlotte

,

North Carolina

(Address of Principal Executive Offices)

28273-5975

(Zip Code)

(704) 554-8510

(Registrant's Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant

under any of the following provisions:

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a -12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A - Common Stock, par value $.033 per share

CATO

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities

Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for

complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

THE CATO CORPORATION

On March 16, 2023, The Cato Corporation issued a press release regarding its financial results for the

fourth quarter ending January 28, 2023. A copy of this press release is hereby incorporated as Exhibit

99.1 hereto.

#### Item 9.01. Financial Statements and Exhibits.
(d) Exhibits

[Exhibit 99.1 - Press Release issued March 16, 2023](exhibit99.htm)

Exhibit 104 – Cover Page Interactive Data File (embedded within Inline XBRL document)

#### Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this

report to be signed on its behalf by the undersigned thereunto duly authorized.

THE CATO CORPORATION

March 20, 2023

/s/ John P. D. Cato

Date

John P. D. Cato

Chairman, President and

Chief Executive Officer

March 20, 2023

/s/ Charles D. Knight

Date

Charles D. Knight

Executive Vice President

Chief Financial Officer

Exhibit Index

#### Exhibit

#### No.
[99.1 - Press Release issued March 16, 2023](exhibit99.htm)

99.1 104 Cover page Interactive Data File (embedded within Inline

XBRL document)

## Exhibit 99.1

#### EXHIBIT 99.1

#### The CATO Corporation

#### NEWS RELEASE

#### FOR IMMEDIATE RELEASE
For Further Information Contact:

Charles D. Knight

Executive Vice President

Chief Financial Officer

InvestorRelations@catocorp.com

#### CATO REPORTS 4Q AND FULL YEAR EARNINGS
CHARLOTTE, N.C. (March 16, 2023) – The Cato Corporation (NYSE: CATO) today reported a net loss of $3.0 million

or ($0.14) per diluted share for the fourth quarter ended January 28, 2023, compared to a net loss of $6.5 million or

($0.30) per diluted share for the fourth quarter ended January 29, 2022.

Full-year fiscal 2022 net income was $0.0

million or $0.00 per diluted share compared to net income of $36.8 million or $1.65 per diluted share for 2021.

Sales for the fourth quarter ended January 28, 2023 were $177.5 million, or an increase of 2% from sales of $173.6

million for the fourth quarter ended January 29, 2022. The Company's same-store sales for the quarter increased 3%

compared to the same period in 2021.

For the year, the Company's sales decreased 1% to $752.4 million from 2021 sales of $761.4 million.

Same-store sales

for the year decreased 1% compared to 2021.

"We are pleased that we were able to deliver comparable store sales growth in the fourth quarter, in these challenging

economic times. That said, we were negatively impacted by late merchandise shipments for most of the year, leading to

significantly more markdowns than anticipated," said John Cato, Chairman, President and Chief Executive Officer.

"The

impact of rising inflation and higher interest rates on our customer's discretionary income, coupled with the negative

impact of s

upply chain disruption on our merchandise assortment

was difficult to overcome

. Despite the challenges

experienced throughout 2022, we have continued investing in key capital projects and efficiency initiatives in support of

our long-term growth.

"

Fourth-quarter gross margin decreased from 36.9% to 31.3% of sales in 2022

reflecting pressure from increased

markdowns, coupled with higher freight and distribution costs

.

Selling, General and Administrative expenses as a percent

of sales decreased from 40.5% to 33.8% of sales during the quarter primarily due to lower store equipment expense and

employee incentive compensation expense, partially offset by increased store operating expenses, related to investments

in hourly associate wages and increased operating hours compared to the prior year.

Income tax for the quarter was a

benefit of $1.2 million compare

d to an expense of $0.2 million last year.

For the full year 2022, gross margin decreased from 40.5% of sales in 2021 to 32.3% of sales

reflecting pressure from

increased markdowns

. Selling, general and administrative expenses decreased to 32.3% of sales compared to 35.1% in

the prior year. The selling, general and administrative rate decrease was primarily due to lower employee incentive

compensation expense and store equipment expense, partially offset by

increased store operating expenses, related to

investments in hourly associate wages and increased operating hours

compared to prior year. Income tax expense for the

year was $1.7 million compared to an expense of $2.1 million las

t year. Income tax expense for the year is primarily

related to overseas operations.

"As we look ahead, we remain focused on our strategy of offering great fashion at a value, with outstanding customer

service. We are planning cautiously for 2023, in an effort to remain nimble in this challenging economic environment.

We anticipate the impact of inflation on our operating expenses and associate wages to continue. Additionally, the current

inflationary and higher interest rate environment will continue to pressure our customers' discretionary spending, " stated

Mr. Cato. "We view 2023 as an opportunity to strengthen the Company, as we continue investments in support of our

future growth."

During 2022, the Company opened 15 stores, relocated 4 stores and permanently closed 46 stores. As of January 28,

2023, the Company operated 1,280 stores in 32 states, compared to 1,311 stores in 32 states as of January 29, 2022.

During 2023, the Company plans to open up to 30 new stores and close up to 50 stores as leases expire. These store

closings are anticipated to have minimal financial impact.

The Cato Corporation is a leading specialty retailer of value-priced fashion apparel and accessories operating three

concepts, "Cato," "Versona" and "It's Fashion." The Company's Cato stores offer exclusive merchandise with fashion

and quality comparable to mall specialty stores at low prices every day. The Company also offers exclusive merchandise

found in its Cato stores at www.catofashions.com. Versona is a unique fashion destination offering apparel and

accessories including jewelry, handbags and shoes at exceptional prices every day. Select Versona merchandise can also

be found at www.shopversona.com. It's Fashion offers fashion with a focus on the latest trendy styles for the entire

family at low prices every day.

*Statements in this press release that express a belief, expectation or intention, as well as those that are not a historical* 

*fact,*

 *including, without limitation, statements regarding the Company's expected or estimated operational financial* 

*results, activities or opportunities, and potential impacts and effects of the coronavirus are considered "forward-looking"* 

*within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based* 

*on current expectations that are subject to known and unknown risks, uncertainties and other factors that could cause* 

*actual results to differ materially from those contemplated by the forward-looking statements. Such factors include, but* 

*are not limited to, any actual or perceived deterioration in the conditions that drive consumer confidence and spending,* 

*including, but not limited to, prevailing social, economic, political and public health conditions and uncertainties, levels* 

*of unemployment, fuel, energy and food costs, wage rates, tax rates, interest rates, home values, consumer net worth and* 

*the availability of credit; changes in laws or regulations affecting our business including but not limited to tariffs;* 

*uncertainties regarding the impact of any governmental action regarding, or responses to, the foregoing conditions;* 

*competitive factors and pricing pressures; our ability to predict and respond to rapidly changing fashion trends and* 

*consumer demands; our ability to successfully implement our new store development strategy to increase new store* 

*openings and the ability of any such new stores to grow and perform as expected; adverse weather, public health threats* 

*(including the global coronavirus (COVID-19) outbreak) or similar conditions that may affect our sales or operations;* 

*inventory risks due to shifts in market demand, including the ability to liquidate excess inventory at anticipated margins;* 

*and other factors discussed under "Risk Factors" in Part I, Item 1A of the Company's most recently filed annual report* 

*on Form 10-K and in other reports the Company files with or furnishes to the SEC from time to time. The Company does* 

*not undertake to publicly update or revise the forward-looking statements even if experience or future changes make it* 

*clear that the projected results expressed or implied therein will not be realized. The Company is not responsible for any* 

*changes made to this press release by wire or Internet services* 

\* \* \*

#### THE CATO CORPORATION

#### CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

#### FOR THE PERIODS ENDED January 28, 2023 AND January 29, 2022
(Dollars in thousands, except per share data)

#### Quarter Ended

#### Nine Months Ended

#### January 28,

#### %
January 29,

%

#### January 28,

#### %
January 29,

%

#### 20

#### 23

#### Sales

Sales

#### 20

#### 23

#### Sales

Sales

#### REVENUES
Retail sales

#### $

#### 177,510

#### 100.0%
$

173,649

100.0%

#### $

#### 752,370

#### 100.0%
$

761,358

100.0%

Other revenue (principally finance,

late fees and layaway charges)

#### 1,539

#### 0.9%
2,578

1.5%

#### 6,890

#### 0.9%
7,913

1.0%

Total revenues

#### 179,049

#### 100.9%
176,227

101.5%

#### 759,260

#### 100.9%
769,271

101.0%

#### GROSS MARGIN (Memo)

#### 55,590

#### 31.3%
64,071

36.9%

#### 242,706

#### 32.3%
308,293

40.5%

#### COSTS AND EXPENSES, NET
Cost of goods sold

#### 121,920

#### 68.7%
109,578

63.1%

#### 509,664

#### 67.7%
453,065

59.5%

Selling, general and administrative

#### 60,042

#### 33.8%
70,338

40.5%

#### 242,648

#### 32.3%
267,026

35.1%

Depreciation

#### 2,662

#### 1.5%
3,004

1.7%

#### 11,080

#### 1.5%
12,356

1.6%

Interest and other income

#### (1,337)

#### -0.8%
(422) -0.2%

#### (5,902)

#### -0.8%
(2,141)

-0.3%

Costs and expenses, net

#### 183,287

#### 103.3%
182,498

105.1%

#### 757,490

#### 100.7%
730,306

95.9%

Income Before Income Taxes

#### (4,238)

#### -2.4%
(6,271)

-3.6%

#### 1,770

#### 0.2%
38,965

5.1%

Income Tax (Benefit)/Expense

#### (1,246)

#### -0.7%

0.1%

#### 1,741

#### 0.2%
2,121

0.3%

Net Income (Loss)

#### $

#### (2,992)

#### -1.7%
$

(6,463)

-3.7%

#### $

#### 29

#### 0.0%
$

36,844

4.8%

Basic Earnings Per Share

#### $

#### (0.14)
$

(0.30)

#### $

#### -
$

1.65 Diluted Earnings Per Share

#### $

#### (0.14)
$

(0.30)

#### $

#### -
$

1.65 #### THE CATO CORPORATION

#### CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)

#### Januar

#### y 28,
Januar

y 29,

#### 2023
2022

#### (Unau

#### dited)
(Unaud

ited)

#### ASSETS
Current Assets

#### $

#### 20,005
$

19,759

Cash and cash equivalents

#### 108,652
145,998

Short-term investments

#### 3,787
3,919

Restricted cash

#### 26,497
55,812

Accounts receivable - net

#### 112,056
124,907

Merchandise inventories

#### 6,676
5,273

Other current assets

#### 277,673
355,668

Total Current Assets

Property and Equipment - net

#### 70,382
63,083

Noncurrent Deferred Income Taxes

#### 9,213
9,313

Other Assets

#### 21,596
24,437

Right-of-Use Assets, net

#### 174,276
181,265

TOTAL

#### $

#### 553,140
$

633,766

#### LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities

#### $

#### 135,597
$

177,327

Current Lease Liability

#### 67,360
66,808

Noncurrent Liabilities

#### 16,183
17,914

Lease Liability

#### 107,407
117,521

Stockholders' Equity

#### 226,593
254,196

TOTAL

#### $

#### 553,140
$

633,766