Cato(CATO) - 2024 Q4 - Annual Report

Financial Performance - Net loss for the fiscal year ended February 3, 2024, was $23,941,000 compared to a net income of $29,000 for the previous year[138]. - Total revenues decreased to $708,059,000 from $759,260,000, representing a decline of approximately 6.7% year-over-year[138]. - The company reported an income loss before taxes of $13.801 million for fiscal 2023, compared to an income of $1.770 million in fiscal 2022[295]. - The net loss available to common stockholders for the fiscal year ended February 3, 2024, was $22,594,000, compared to a net income of $34,907,000 in the previous fiscal year[200]. - The basic and diluted earnings per share for the fiscal year ended February 3, 2024, were both $(1.17), a significant decline from $1.65 in the prior year[200]. Assets and Liabilities - Total current assets decreased from $277,673,000 in January 28, 2023, to $243,062,000 in February 3, 2024, representing a decline of approximately 12.5%[134]. - Total liabilities decreased from $553,140,000 in January 28, 2023, to $486,817,000 in February 3, 2024, a decrease of about 12.0%[134]. - The company’s total stockholders' equity decreased from $226,593,000 in January 28, 2023, to $192,321,000 in February 3, 2024, a decrease of about 15.1%[134]. - As of February 3, 2024, total assets were $486.817 million, a decrease from $553.140 million as of January 28, 2023[295]. - Accounts receivable increased to $30,456,000 as of February 3, 2024, compared to $27,258,000 as of January 28, 2023, representing an increase of approximately 8.1%[219]. Inventory and Sales - Merchandise inventories decreased from $112,056,000 in January 28, 2023, to $98,603,000 in February 3, 2024, a reduction of about 12.0%[134]. - The company experienced a significant increase in merchandise inventories, which rose to $13,453,000 from $12,851,000, an increase of approximately 4.7%[135]. - Layaway sales represented approximately 3.0% of retail sales in fiscal 2023, up from 2.7% in both fiscal 2022 and 2021[38]. Expenses - Cost of goods sold was $464,313,000, down from $509,664,000, indicating a reduction of about 8.9%[138]. - Selling, general and administrative expenses increased to $252,742,000 from $242,561,000, reflecting a rise of approximately 4.9%[138]. - The company’s advertising expenditures were approximately 1.0% of retail sales for fiscal 2023, consistent with the previous year[32]. - Advertising expenses for the fiscal year ended February 3, 2024, were approximately $6,277,000, a decrease from $6,868,000 in the prior year[199]. Cash Flow and Investments - Net cash provided by operating activities was $477,000, significantly lower than $13,370,000 in the previous year[135]. - Cash and cash equivalents at the end of the period increased to $27,913,000 from $23,792,000, marking a rise of about 17.8%[135]. - The company's investment portfolio primarily consists of corporate bonds and governmental debt securities, with total assets valued at $88,682,000 as of February 3, 2024[193]. Taxation - The Company reported total income tax expense of $10,140,000 for the fiscal year ended February 3, 2024, significantly higher than $1,741,000 for the previous year[262]. - The effective income tax rate for the fiscal year ended February 3, 2024, was (73.5)%, a significant change from 98.4% in the previous year[272]. - The Company had $11.0 million of net deferred tax assets attributable to U.S. federal net operating loss carryforwards as of February 3, 2024[266]. Shareholder Information - The company’s Class A common stock issued increased from 18,723,225 shares in January 28, 2023, to 18,802,742 shares in February 3, 2024[134]. - Dividends paid remained consistent at $0.68 per share for both the current and previous fiscal years[138]. - The Company had 909,653 shares remaining in open authorizations for its stock repurchase program as of February 3, 2024[175]. Other Financial Metrics - The company incurred asset impairment charges of $1,811,000, $884,000, and $901,000 in fiscal years 2023, 2022, and 2021, respectively[168]. - The Company recognized $1,116,000, $256,000, and $1,482,000 of income on unredeemed gift cards for fiscal years 2023, 2022, and 2021, respectively[152]. - The Company accrued for potential litigation liabilities, although management does not expect any material adverse effects on financial statements from current pending litigation[299].