Cato : Results, activities or opportunities, and potential impacts and effects of the coronavirus are considered “forward-looking” - Form 8-K

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 Actof 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 conditionsand 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 newstore 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 abilityto liquidate excess inventory at anticipated margins;

and other factors discussed under "Risk Factors" in Part I, Item 1Aof the Company'smost 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 STATEMENTSOF 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

20

22

Sales

20

23

Sales

20

22

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%

192

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