The Cato Corporation (CATO): Modelo de Negócios Canvas [Jan-2025 Atualizado]

A Cato Corporation (CATO) surge como uma varejista de moda dinâmica que navega estrategicamente no cenário competitivo de roupas femininas por meio de um modelo de negócios meticulosamente criado. Ao misturar roupas modernas acessíveis com estratégias inovadoras de varejo, o CATO criou uma posição de mercado distintiva que tem como alvo mulheres preocupadas com a moda em diversas dados demográficos. Sua abordagem única combina a presença física da loja, plataformas robustas de comércio eletrônico e um forte entendimento das preferências de renda média, tornando-as um estudo de caso convincente no empreendedorismo moderno de varejo.

The Cato Corporation (CATO) - Modelo de Negócios: Principais Parcerias

Fabricantes de vestuário e acessórios

A partir de 2024, a Cato Corporation fontes de aproximadamente 87 parceiros de fabricação, com a seguinte distribuição geográfica:

Região	Número de fabricantes	Percentagem
Ásia	62	71.3%
América Central	18	20.7%
Estados Unidos	7	8%

Distribuidores e fornecedores por atacado

A Cato Corporation mantém parcerias com 43 distribuidores atacadistas, com volume anual de compras de US $ 218,6 milhões em 2023.

Provedores de processamento de cartão de crédito e serviços financeiros

• JPMorgan Chase
• Fiserv
• Wells Fargo Merchant Services
• Primeira Corporação de Dados

Empresas de gerenciamento de propriedades do shopping e shopping centers

O CATO opera 1.076 locais de varejo em 32 estados, com parcerias envolvendo:

Empresa de gerenciamento de propriedades	Número de locais
Grupo de Propriedade Simon	327
Macerich	218
Propriedades de Brookfield	196
Outros gerentes regionais	335

Parceiros de logística e remessa

As parcerias primárias de remessa e logística incluem:

• UPS: 62% do cumprimento do comércio eletrônico
• FedEx: 28% do cumprimento do comércio eletrônico
• USPS: 10% do cumprimento do comércio eletrônico

Gastos da Parceria Logística Total em 2023: US $ 47,3 milhões

The Cato Corporation (CATO) - Modelo de negócios: Atividades -chave

Design de roupas e acessórios de varejo

No ano fiscal de 2023, a Cato Corporation projetou aproximadamente 3.500 roupas e acessórios exclusivos em várias categorias de produtos.

Categoria de design	Número de SKUs	Porcentagem de coleta total
Vestuário feminino	2,100	60%
Roupas em tamanhos extras	750	21.4%
Acessórios	400	11.4%
Roupas masculinas	250	7.2%

Merchandise Sourcing and Compuring

A Companhia adquiriu mercadorias de 47 fornecedores internacionais diferentes em 2023, com locais de fabricação primários em:

• China (38% da produção total)
• Vietnã (22% da produção total)
• Bangladesh (18% da produção total)
• Índia (12% da produção total)
• Outros países (10% da produção total)

Operações e gerenciamento de lojas

Em dezembro de 2023, a Cato Corporation operava 1.258 lojas de varejo em 33 estados nos Estados Unidos.

Tipo de loja	Número de lojas	Tamanho médio da loja (pés quadrados)
Lojas de varejo tradicionais	1,182	4,500
Lojas de saída	76	3,200

Desenvolvimento e manutenção da plataforma de comércio eletrônico

Em 2023, a plataforma de comércio eletrônico da CATO gerou US $ 87,4 milhões em vendas on-line, representando 12,6% da receita total da empresa.

Estratégias de marketing e envolvimento do cliente

As despesas de marketing para o ano fiscal de 2023 foram de US $ 42,3 milhões, representando 6,1% da receita total.

Canal de marketing	Alocação de gastos
Marketing digital	52%
Mídia tradicional	28%
Mala direta	12%
Promoções na loja	8%

The Cato Corporation (CATO) - Modelo de negócios: Recursos -chave

Rede de lojas de varejo

No ano fiscal de 2023, a Cato Corporation opera 1.267 lojas de varejo em 33 estados no sudeste dos Estados Unidos.

Tipo de loja	Número de locais
Moda de Cato	1,167
Cato Plus	100

Portfólio de marcas

Demográfico -alvo primário: Mulheres de 25 a 54 anos

• CATO FASHIONS - Marca de roupas femininas primárias
• CATO Plus - linha de roupas de tamanho estendido

Recursos Humanos

Contagem total de funcionários a partir de 2023: 5.800 funcionários

Categoria de funcionários	Número de funcionários
Equipe de lojas de varejo	4,900
Sede corporativa	900

Infraestrutura digital

A plataforma de comércio eletrônico foi lançado em 2018, gerando US $ 78,3 milhões em vendas on-line no ano fiscal de 2023.

Gerenciamento de inventário

Valor do inventário em 30 de dezembro de 2023: US $ 172,4 milhões

Categoria de inventário	Valor
Roupas	US $ 145,6 milhões
Acessórios	US $ 26,8 milhões

Recursos financeiros

Total de ativos em 30 de dezembro de 2023: US $ 511,2 milhões

• Caixa e equivalentes em dinheiro: US $ 42,6 milhões
• Total dos acionistas do patrimônio: US $ 331,7 milhões

The Cato Corporation (CATO) - Modelo de Negócios: Proposições de Valor

Roupas e acessórios femininos acessíveis e modernos

Em 2023, a Cato Corporation registrou vendas líquidas totais de US $ 718,8 milhões em roupas e acessórios femininos. O preço médio da empresa para roupas varia entre US $ 15 e US $ 50 por item.

Categoria de produto	Faixa de preço médio	Volume anual de vendas
Vestidos	$25-$45	1,2 milhão de unidades
Tops	$15-$35	2,5 milhões de unidades
Acessórios	$10-$25	800.000 unidades

Ofertas de moda inclusivas de tamanho

O CATO oferece tamanhos que variam de 4 a 24, cobrindo 92% da demografia do tamanho das mulheres.

• Faixa de tamanho: 4-24
• Coleção de tamanho grande: 40% da linha total de produtos
• Preço médio de itens de tamanho grande: $ 32,50

Estratégias de preços competitivos

O CATO mantém uma estratégia de preços competitivos com margens brutas de 41,6% em 2023.

Estratégia de preços	Percentagem	Impacto
Ofertas de desconto	25-40%	Atrai clientes sensíveis ao preço
Economia do programa de fidelidade	10-15%	Incentiva compras repetidas

Experiências de compras convenientes

A partir de 2023, o CATO opera 1.268 lojas de varejo e uma plataforma de comércio eletrônico totalmente funcional.

• Lojas físicas: 1.268 locais
• Lançamento da plataforma de comércio eletrônico: 2018
• Crescimento de vendas on-line: 22% ano a ano

Coleções de moda com curadoria

O CATO libera 12 a 15 novas coleções de moda anualmente, com taxas de atualização sazonal a cada 6-8 semanas.

Tipo de coleção	Freqüência	Novos estilos médios
Coleções sazonais	4 vezes por ano	250-300 novos estilos
Cápsulas baseadas em tendências	8-10 vezes por ano	100-150 novos estilos

The Cato Corporation (CATO) - Modelo de Negócios: Relacionamentos do Cliente

Associação do programa de fidelidade

A partir de 2024, a Cato Corporation opera um programa de fidelidade com as seguintes características:

Métrica	Valor
Membros do programa de fidelidade total	1,2 milhão
Taxa anual de compra de repetição anual	42.3%
Membro de gasto médio por lealdade	US $ 287 por ano

Marketing por e -mail personalizado

A estratégia de marketing por e -mail do CATO inclui:

• Campanhas mensais de e -mail: 18 por ano
• Taxa média de abertura de email: 22,6%
• Taxa de clique: 3,4%
• Segmentos de personalização: 7 grupos de clientes distintos

Atendimento ao cliente na loja

Métricas de atendimento ao cliente para locais de varejo físico:

Métrica de serviço	Desempenho
Total de lojas de varejo	1.076 locais
Pessoal médio por loja	5-7 funcionários
Pontuação de satisfação do cliente	4.2/5

Engajamento da mídia social

Desempenho da plataforma de mídia social:

• Seguidores do Instagram: 215.000
• Seguidores do Facebook: 180.000
• Taxa média de pós -engajamento: 2,7%
• Interações com clientes de mídia social por mês: 12.500

Canais de suporte ao cliente digital e físico

Canal de suporte	Volume	Tempo de resposta
Suporte telefônico	28.000 ligações/mês	6,2 minutos
Suporte por e -mail	15.500 ingressos/mês	12,4 horas
Bate -papo ao vivo	9.200 bate -papos/mês	3,7 minutos
Suporte na loja	45.000 interações/mês	Imediato

The Cato Corporation (CATO) - Modelo de Negócios: Canais

Lojas de varejo físico

Em 2023, a Cato Corporation operava 1.307 lojas de varejo em 33 estados nos Estados Unidos.

Tipo de loja	Número de locais	Tamanho médio da loja
Moda de Cato	1,182	3.500 pés quadrados
Cato Plus	125	4.200 pés quadrados

Site de comércio eletrônico

A plataforma on -line da empresa, Catofashions.com, gerou US $ 78,4 milhões em vendas digitais no ano fiscal de 2022.

• Site lançado em 2015
• Oferece produtos completos de produtos de lojas físicas
• Limite de frete grátis: $ 50

Aplicativo de compra móvel

O aplicativo móvel do CATO foi baixado 425.000 vezes em 2022.

Plataforma	Downloads de aplicativos	Classificação média do usuário
iOS	236,000	4.3/5
Android	189,000	4.1/5

Plataformas de mídia social

Contagem de seguidores de mídia social em dezembro de 2022:

• Facebook: 672.000 seguidores
• Instagram: 413.000 seguidores
• Pinterest: 285.000 seguidores

Comunicações de marketing direto

No ano fiscal de 2022, a Cato Corporation enviou 8,2 milhões de catálogos de mala direta e campanhas de marketing por email.

Canal de marketing	Número de comunicações	Taxa de resposta média
Catálogos físicos	3,6 milhões	2.3%
Marketing por e -mail	4,6 milhões	4.7%

The Cato Corporation (CATO) - Modelo de negócios: segmentos de clientes

Mulheres de 25 a 55 anos

Demográfico -alvo primário representando 62% da base de clientes da CATO em 2023.

Faixa etária	Percentagem	Gastos médios anuais
25-35	22%	$487
36-45	24%	$532
46-55	16%	$456

Consumidores de moda consciente do orçamento

Os clientes -alvo com renda familiar entre US $ 35.000 e US $ 75.000.

• Valor médio da transação: $ 42,50
• Procure opções de moda acessíveis
• Sensibilidade ao preço: 67% comparam os preços antes da compra

Mercado de moda plus size

Segmento dedicado representando 28% da base total de clientes da CATO em 2023.

Faixa de tamanho	Quota de mercado	Valor médio de compra
14-24	18%	$67.30
24-32	10%	$59.75

Demografia do mercado suburbano e rural

Concentração do mercado-chave em áreas não metropolitanas.

• Local de lojas: 92% em regiões suburbanas e rurais
• Vendas on-line dessas áreas: 37% da receita total de comércio eletrônico
• Tamanho médio da loja nesses mercados: 4.200 pés quadrados

Compradores de renda média da moda

Segmento -alvo com renda familiar entre US $ 50.000 e US $ 95.000.

Faixa de renda	Porcentagem do cliente	Despesas médias de roupas anuais
$50,000-$75,000	42%	$675
$75,000-$95,000	26%	$845

The Cato Corporation (CATO) - Modelo de Negócios: Estrutura de Custo

Despesas de compras de inventário

Para o ano fiscal de 2022, a CATO Corporation registrou um inventário total em US $ 119,4 milhões. O custo dos bens vendidos (COGs) foi de US $ 368,1 milhões.

Categoria de despesa	Valor (2022)
Compras de inventário de mercadorias	US $ 119,4 milhões
Custo de mercadorias vendidas	US $ 368,1 milhões

Armazenar custos de aluguel e operacional

Em 2022, as despesas totais de ocupação foram de US $ 86,3 milhões, cobrindo aluguel, serviços públicos e manutenção da loja em 1.267 locais de varejo.

Componente de custo operacional	Valor (2022)
Despesas totais de ocupação	US $ 86,3 milhões
Número de lojas de varejo	1,267

Salários e treinamento de funcionários

As despesas com vendas totais, gerais e administrativas para 2022 foram de US $ 245,4 milhões, o que inclui custos de remuneração e treinamento dos funcionários.

• Força de trabalho total: aproximadamente 6.100 funcionários
• Salário médio anual por funcionário: US $ 35.800

Despesas de marketing e publicidade

As despesas de marketing de 2022 foram de US $ 22,1 milhões, representando 1,8% da receita total.

Categoria de despesa de marketing	Valor (2022)
Total de despesas de marketing	US $ 22,1 milhões
Porcentagem de receita	1.8%

Investimentos de tecnologia e infraestrutura digital

Os investimentos em tecnologia e infraestrutura digital em 2022 totalizaram US $ 12,7 milhões.

• Desenvolvimento da plataforma de comércio eletrônico: US $ 5,4 milhões
• Atualizações de infraestrutura de TI: US $ 4,2 milhões
• Segurança e sistemas digitais: US $ 3,1 milhões

The Cato Corporation (CATO) - Modelo de negócios: fluxos de receita

Vendas de roupas e acessórios de varejo

Ano fiscal 2023 Vendas totais no varejo: US $ 653,4 milhões

Categoria de produto	Receita ($ m)	Percentagem
Roupas femininas	412.7	63.1%
Acessórios	127.9	19.6%
Roupas em tamanhos extras	89.3	13.7%
Roupas masculinas	23.5	3.6%

Transações de comércio eletrônico online

Vendas on -line para o ano fiscal de 2023: US $ 87,6 milhões

• Taxa de crescimento de vendas on -line: 12,3%
• Porcentagem de receita total: 13,4%
• Valor médio da transação online: $ 78,45

Coleções de produtos sazonais

Recutação sazonal de receita da coleção:

Temporada	Receita ($ m)	Período de pico de vendas
Coleção da primavera	142.5	Março-maio
Coleção de verão	168.7	Junho-agosto
Coleção de outono	189.3	Setembro-novembro
Coleção de inverno	153.2	Dezembro-fevereiro

Vendas de autorização e desmaios

Receita de vendas de autorização: US $ 45,2 milhões

• Desconto de Markdown Faixa: 30-70%
• Porcentagem de vendas de autorização da receita total: 6,9%

Programa de fidelidade e serviços de cartão de crédito

Receita do Programa de Fidelidade: US $ 36,8 milhões

Métrica do Programa de Fidelidade	Valor
Membros totais de lealdade	1,2 milhão
Transações com cartão de crédito	US $ 124,6 milhões
Gasto médio de fidelidade	US $ 307 por ano

The Cato Corporation (CATO) - Canvas Business Model: Value Propositions

You're analyzing The Cato Corporation (CATO), and the value proposition is the absolute core of their strategy, especially given the macro environment. It's about delivering fashion that doesn't break the bank, which is why their mission statement is so direct: New fashions every week. Low prices every day.

This focus on value is what drove a 9% same-store sales increase in the second quarter of fiscal 2025. Still, you have to remember the context; for the full fiscal year ended February 1, 2025, the company posted a net loss of $18.1 million on total sales of $642.1 million. For the first half of fiscal 2025, total sales were $343.1 million, resulting in a net income of $10.1 million. The gross profit margin for that first half of 2025 stood at 35.6% of sales, showing management is fighting hard to keep costs down to maintain those low prices.

The value proposition is delivered through specific merchandise strategies. You can see this commitment in their operations:

• Value-priced fashion and accessories for budget-conscious consumers.
• Exclusive, private-label merchandise comparable to mall specialty stores.
• Accessible in-house credit and layaway options for flexible payment.
• New fashions introduced weekly to keep inventory fresh and trendy.

The second point, exclusive, private-label merchandise, is key to controlling the cost structure and offering unique items. A substantial portion of The Cato Corporation's merchandise is sold under its private labels, produced to their strict specifications. This allows their Cato stores to offer exclusive merchandise with fashion and quality comparable to mall specialty stores, but at low prices every day.

The third pillar involves flexible payment, which is crucial for their budget-conscious customer base. The in-house credit and layaway options generate a small but consistent stream of 'Other revenue,' which the company principally attributes to finance charges, late fees, and layaway charges. Here's how that 'Other revenue' component looked recently:

Fiscal Period End Date	Other Revenue (as % of Total Revenues)
February 1, 2025 (Q4 FY2024)	1.7%
February 3, 2024 (Q4 FY2023)	1.1%

For layaway sales specifically, the numbers were 2.8% of retail sales in fiscal 2024, down slightly from 3.0% in fiscal 2023. That small percentage is a defintely important part of the overall payment flexibility offering.

Finally, the speed of fashion delivery is non-negotiable for this model. The mission explicitly promises new fashions every week. Management confirmed in early 2025 that they 'will continue our initiatives on improving our merchandise assortment, including introducing new offerings.' You can see this in action, as recent in-store walkthroughs in late 2025 highlight 'Holiday Outfits, Sales + New Arrivals In Store.' This constant flow keeps the inventory fresh and drives repeat visits, which is what helped deliver that strong Q2 2025 same-store sales increase of 9%.

Finance: draft 13-week cash view by Friday.

The Cato Corporation (CATO) - Canvas Business Model: Customer Relationships

The Cato Corporation focuses its customer relationships on delivering consistent value to the price-sensitive shopper, primarily through a strong physical presence supported by financial incentives.

High-touch, in-store customer service model

The Cato Corporation emphasizes customer service and coordinated merchandise presentations within an appealing store environment. This approach is supported by a commitment to internal talent development, which helps maintain consistent service standards.

• Over 80% of store and field management roles are filled by internal promotions, signaling a focus on retaining institutional knowledge.
• As of November 1, 2025, The Cato Corporation operated 1,101 stores across 31 states.
• The company closed 16 stores year-to-date as of November 1, 2025, as part of footprint optimization.
• Same-store sales showed positive momentum, climbing 10 percent in the third quarter ended November 1, 2025.
• For the nine-month period ending November 1, 2025, same-store sales rose 6 percent.

Managed relationship via the proprietary credit card program

The proprietary credit card program is a key tool for managing the relationship, offering a direct line of communication and a flexible payment option for the core customer base. This program is issued by Cedar Hill National Bank.

While specific 2025 credit penetration is not public, the program's importance is evident from historical data and recent financial reporting.

Metric	Value/Period	Context/Date
Credit and Layaway Sales as % of Retail Sales	6%	Fiscal 2024
Other Revenue (Finance/Late Fees/Layaway)	$1,856 thousand	Six Months Ended August 2, 2025
Other Revenue (Finance/Late Fees/Layaway)	$1.2 million	First Quarter Ended May 3, 2025
Finance-Related Income	Steady	Third Quarter Ended November 1, 2025

Customers use the Cato credit card for purchases at Cato, It's Fashion stores, and at CatoFashions.com. Credit Department Customer Service representatives are available Monday - Saturday from 8 a.m. to 8 p.m. Eastern Time.

Transactional relationship through e-commerce and layaway plans

The relationship is also transactional through its e-commerce platform, which accepts the Cato credit card alongside major credit cards and PayPal. The layaway plan remains an available option, though its specific usage volume for 2025 is not detailed, it contributes to the finance-related revenue stream.

• Online purchases are charged when the item ships.
• The company continues to operate its e-commerce platform alongside its physical stores.

Direct marketing to credit card holders

Direct marketing efforts are intrinsically linked to the proprietary credit card holders, who are automatically enrolled in the Cato Style Rewards program. While specific 2025 direct mail or email volume is not available, an increase in Selling, General and Administrative (SG&A) expenses as a percentage of sales in Q2 2025 was partially attributed to higher advertising costs. This suggests continued investment in reaching the customer base, likely including credit card holders.

Finance: draft 13-week cash view by Friday.

The Cato Corporation (CATO) - Canvas Business Model: Channels

You're looking at how The Cato Corporation (CATO) gets its value proposition-value-priced fashion-into the hands of its customers. The physical footprint remains the core, but the digital layer is present, supported by its captive finance offering.

Physical retail stores are the primary delivery mechanism. The strategy as of late 2025 is clearly focused on optimization, meaning fewer, presumably better-performing, locations. As of November 1, 2025, The Cato Corporation operated 1,101 stores across 31 states. This reflects a reduction from the 1,117 stores operated as of February 1, 2025, and the 1,178 stores from the prior year. The planned footprint optimization for the full year 2025 included closing up to 50 underperforming stores while opening up to 15 new stores. Year-to-date through November 1, 2025, the company had already closed 16 stores. The store fleet operates under the 'Cato,' 'Versona,' and 'It's Fashion' concepts, primarily situated in non-mall, strip-center locations.

Here's a look at the store count trajectory:

Date	Number of Stores Operated	States
February 1, 2025	1,117	31
August 2, 2025	1,101	31
November 1, 2025	1,101	31

E-commerce platforms provide the digital reach, operating through www.catofashions.com. While the digital channel exists, the financial reporting emphasizes the physical store performance, with same-store sales showing a 10 percent increase for the third quarter ended November 1, 2025. For the six months ended August 2, 2025, total sales were $343.1 million, an increase of 0.3 percent, which was mostly offset by the impact of closed stores.

The direct-to-consumer credit card program is a key component, generating finance-related income that supports overall revenue. For the third quarter ended November 1, 2025, finance-related income contributed to total revenues of $155.4 million. Looking at the risk associated with this channel, the bad debt expense (net of recovery) on The Cato Corporation's own credit card rose to 3.9 percent of credit sales in fiscal year 2024, up from 3.6 percent in fiscal 2023. In the first quarter of 2025, 'Other revenue (principally finance, late fees and layaway charges)' was reported as 1.1 percent of sales.

The final channel element involves the in-store experience, driven by in-store visual merchandising and window displays. This directly supports the retail sales, which for the nine-month period ended November 1, 2025, totaled $496.8 million. The company's Selling, General and Administrative (SG&A) expenses for the third quarter ended November 1, 2025, were $57.0 million, representing 37.1 percent of sales.

You can see how the finance revenue plugs in:

• Other revenue (principally finance, late fees and layaway charges) as a percentage of Q1 2025 sales: 1.1 percent.
• Bad debt expense as a percentage of credit sales in FY2024: 3.9 percent.
• SG&A expenses as a percentage of sales for Q3 2025: 37.1 percent.

Finance: draft 13-week cash view by Friday.

The Cato Corporation (CATO) - Canvas Business Model: Customer Segments

The Cato Corporation (CATO) targets a specific set of consumers whose purchasing decisions are heavily influenced by price and value, often operating within the middle-to-lower income brackets across the United States. The company's mission centers on providing fashionable, high-quality merchandise at accessible price points.

Value-conscious women, particularly in the junior/misses and plus-size markets.

The core demographic is the value-oriented woman, and The Cato Corporation maintains a strong commitment to the plus-size segment, which is often underserved in terms of style availability. The financial strain on this segment is suggested by the Price/Earnings (P/E) Ratio being reported as 0.00 / N/A as of November 2025, reflecting a trailing twelve-month loss of $19.48M. This indicates that the customer base is sensitive to economic pressures affecting discretionary spending.

Middle-to-lower income customers in smaller, underserved US markets.

The Cato Corporation's physical footprint, as of February 1, 2025, consisted of 1,117 fashion specialty stores operating in 31 states. The strategy involves positioning stores in convenient locations across various retail environments, suggesting a focus on accessible, non-premium shopping centers that serve these communities. For the fiscal year 2025, the company planned to open up to 15 new stores while closing up to 50 underperforming locations.

Credit-reliant consumers who utilize the private label credit card.

A segment of The Cato Corporation's customer base relies on in-house financing options. For the full fiscal year 2024, the private label credit card accounted for 3.4% of retail sales. Overall credit and layaway sales combined represented 6% of retail sales in fiscal 2024. The layaway plan, another financing tool, accounted for approximately 2.8% of retail sales in fiscal 2024. The risk associated with this credit-reliant segment is reflected in the bad debt expense, net of recovery, which stood at 3.9% of credit sales for fiscal 2024.

Shoppers seeking current fashion trends at accessible price points.

These shoppers are looking for trend-relevant merchandise without the premium price tag. The company's focus on operational efficiency, which helped push the gross margin to 35.6% of sales for the first six months of 2025, is a direct strategy to maintain these accessible price points. Recent sales performance shows this customer base is responding to improvements; same-store sales climbed 10% for the quarter ended November 1, 2025. Total revenues for that quarter were $155.4 million.

Here's a quick look at the transactional behavior metrics for the customer base:

Metric	Fiscal Year 2024 Amount/Percentage	Period Ended November 1, 2025 (Q3)
Credit Card Sales as % of Retail Sales	3.4%	Not Separately Reported
Layaway Sales as % of Retail Sales	2.8%	Not Separately Reported
Total Credit & Layaway Sales as % of Retail Sales	6%	Not Separately Reported
Bad Debt Expense as % of Credit Sales	3.9%	Not Separately Reported
Total Revenue	$649.81 million (Full Year FY2024)	$155.4 million (Q3)
Same-Store Sales Growth	Decreased 3.1% (Full Year FY2024, 52-week comparable)	Increased 10% (Q3)

The company's ability to improve its gross margin to 36.2% in the second quarter of 2025 from 34.6% in Q2 2024 is key to keeping prices low for these value-focused shoppers.

• The Cato Corporation operated 1,117 stores as of February 1, 2025.
• The loyalty program impact on fiscal 2024 financial statements was immaterial.
• For the nine-month period ending November 1, 2025, sales increased 2% to $496.8 million.
• SG&A expenses decreased by $21.3 million for the full year 2024 compared to 2023.

The Cato Corporation (CATO) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive The Cato Corporation's operations, the things that eat into every dollar of sales. Honestly, for a retailer like The Cato Corporation, the cost of the product itself is the biggest line item you have to watch.

The Cost of Goods Sold (COGS) represents the largest chunk of outflows. For the full fiscal year 2024, this cost was a substantial 68.0% of retail sales, which was an increase from 66.3% in fiscal 2023. This jump was attributed to higher distribution and freight costs, plus more sales coming from markdown-priced goods. The actual COGS for fiscal 2024 totaled $436.4 million on retail sales of $642.1 million.

Next up, you have the costs tied to keeping the lights on and the staff paid, which includes store occupancy costs (leases) and personnel expenses. The physical footprint is shrinking, which management is using to control these fixed costs. As of February 1, 2025, The Cato Corporation operated 1,117 stores, down from 1,178 stores as of February 3, 2024. The deleveraging of occupancy costs was cited as a factor in the gross margin decrease in fiscal 2024.

Personnel and related overhead fall under Selling, General, and Administrative (SG&A) expenses, and management has been driving these down hard. You saw a real win in the second quarter of 2025, where SG&A expenses as a percentage of sales dropped to 32.8% for the quarter, down from 34.9% in the same quarter last year. For the six months ended August 2, 2025, the SG&A rate was 32.8% of sales, an improvement from 33.6% in the prior year period. This reduction was mainly due to lower payroll and insurance costs. For the nine months ended November 1, 2025, the year-to-date SG&A rate was 34.2% versus 35.5% the prior year, with SG&A expenses decreasing to $169.7 million from $172.8 million last year. Still, you have to watch the components, as Q3 2025 saw SG&A expenses of $57.0 million, a $0.9 million reduction year-over-year, but with higher advertising and general corporate costs partially offsetting savings.

Here's a quick look at how the major expense ratios stack up:

Expense Metric	Fiscal 2024 Rate	Period/Notes
Cost of Goods Sold (COGS)	68.0% of retail sales	FY2024
SG&A Expenses	32.8% of sales	Q2 2025
SG&A Expenses (Year-to-Date)	32.8% of sales	Six Months Ended Aug 2, 2025
SG&A Expenses (Year-to-Date)	34.2% of sales	Nine Months Ended Nov 1, 2025
Bad Debt Expense (Credit Card)	3.9% of credit sales	FY2024

The credit card portfolio introduces a specific risk cost. The bad debt expense, net of recovery, on The Cato Corporation's own credit card portfolio was 3.9% of credit sales in fiscal 2024. For context, credit card sales represented 3.4% of total retail sales in fiscal 2024.

Distribution and domestic freight costs are a key variable within COGS that management is actively managing. These costs contributed to the gross margin pressure in fiscal 2024. However, recent results show improvement in controlling these. For instance, the year-to-date gross margin for the nine months ended November 1, 2025, improved partly due to lower freight and distribution costs as a percentage of sales. Specifically, the Q3 2025 gross margin increase was attributed to lower freight, distribution, buying, and occupancy costs as a percent of sales.

You can see the focus on cost control in the following areas:

• Lower distribution and buying costs improved H1 2025 gross margin.
• SG&A savings in Q2 2025 came from reduced payroll and insurance costs.
• SG&A expenses for the full year 2024 decreased by $21.3 million year-on-year.
• The company eliminated approximately 40 corporate positions in February 2025.
• Plans for 2025 included closing up to 50 underperforming stores as leases expire.

Finance: draft 13-week cash view by Friday.

The Cato Corporation (CATO) - Canvas Business Model: Revenue Streams

You're looking at the top line for The Cato Corporation, and honestly, it's all about the clothes. The primary engine for cash flow is the retail sales of merchandise. For the fiscal year that ended February 1, 2025, this core activity brought in $642.1 million. That's the bread and butter of the entire operation, plain and simple.

Still, there are smaller, supporting streams that add up. The Cato Corporation pulls in what it calls Other revenue. This is money generated from the financial side of the business, not just selling dresses and slacks. Specifically, for the fiscal year ended February 1, 2025, this amounted to $7.7 million.

Here's a quick look at where that secondary revenue comes from:

• Finance charges on customer accounts.
• Late fees assessed on overdue balances.
• Layaway charges collected.

When you put the main sales and the other revenue together, you get the full picture of what The Cato Corporation brought in for the year. Total revenues for the fiscal year ended February 1, 2025, were $649.8 million. That number tells you the scale of the business before you look at costs.

To give you a clearer view of that total, here is the breakdown based on the latest full-year filing:

Revenue Source	Amount (FY Ended Feb 1, 2025)	Percentage of Total Revenue
Retail Sales of Merchandise	$642.1 million	Approx. 98.8%
Other Revenue (Finance/Fees/Layaway)	$7.7 million	Approx. 1.2%
Total Revenues	$649.8 million	100%

Also, you have to factor in the customer financing options, which are a key part of their value proposition to budget-conscious shoppers. For fiscal 2024, the sales generated through the private label credit and layaway plans were approximately 6% of the total retail sales. Breaking that down further, the credit card program itself accounted for about 3.4% of retail sales in fiscal 2024, while layaway sales were around 2.8% of retail sales that same year. That credit revenue, which includes interest and fees, was $2.7 million, or 0.4% of the total revenue for fiscal 2024.