El Cato Corporation (CATO): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

Cato Corporation (CATO) emerge como un minorista de moda dinámica que navega estratégicamente el panorama competitivo de la ropa femenina a través de un modelo de negocio meticulosamente elaborado. Al combinar ropa moderna asequible con estrategias minoristas innovadoras, Cato ha forjado una posición de mercado distintiva que se dirige a las mujeres conscientes de la moda en diversos datos demográficos. Su enfoque único combina la presencia física de la tienda, las sólidas plataformas de comercio electrónico y una gran comprensión de las preferencias de los consumidores de ingresos medios, lo que las convierte en un estudio de caso convincente en el emprendimiento minorista moderno.

The Cato Corporation (CATO) - Modelo de negocios: asociaciones clave

Fabricantes de ropa y accesorios

A partir de 2024, Cato Corporation fuga de aproximadamente 87 socios de fabricación, con la siguiente distribución geográfica:

Región	Número de fabricantes	Porcentaje
Asia	62	71.3%
América Central	18	20.7%
Estados Unidos	7	8%

Distribuidores y proveedores al por mayor

Cato Corporation mantiene asociaciones con 43 distribuidores mayoristas, con un volumen de adquisición anual de $ 218.6 millones en 2023.

Procesamiento de tarjetas de crédito y proveedores de servicios financieros

• JPMorgan Chase
• Fiserv
• Servicios comerciales de Wells Fargo
• Primera corporación de datos

Compañías de administración de propiedades de centros comerciales y centros comerciales

Cato opera 1,076 ubicaciones minoristas en 32 estados, con asociaciones que involucran:

Empresa de administración de propiedades	Número de ubicaciones
Grupo de propiedades Simon	327
Macerich	218
Brookfield Properties	196
Otros gerentes regionales	335

Logística y socios de envío

Las asociaciones de envío y logística primarios incluyen:

• UPS: 62% del cumplimiento de comercio electrónico
• FedEx: 28% del cumplimiento de comercio electrónico
• USPS: 10% del cumplimiento de comercio electrónico

Gasto total de asociación de logística en 2023: $ 47.3 millones

The Cato Corporation (CATO) - Modelo de negocio: actividades clave

Diseño de ropa y accesorios minoristas

En el año fiscal 2023, la corporación CATO diseñó aproximadamente 3.500 ropa y accesorios únicos SKU en múltiples categorías de productos.

Categoría de diseño	Número de skus	Porcentaje de recolección total
Ropa de mujer	2,100	60%
Ropa de talla grande	750	21.4%
Accesorios	400	11.4%
Ropa para hombres	250	7.2%

Abastecimiento de mercancías y adquisiciones

La compañía obtuvo mercancía de 47 proveedores internacionales diferentes en 2023, con ubicaciones de fabricación primaria en:

• China (38% de la producción total)
• Vietnam (22% de la producción total)
• Bangladesh (18% de la producción total)
• India (12% de la producción total)
• Otros países (10% de la producción total)

Operaciones y administración de almacenamiento

A diciembre de 2023, Cato Corporation operaba 1.258 tiendas minoristas en 33 estados en los Estados Unidos.

Tipo de tienda	Número de tiendas	Tamaño promedio de la tienda (SQ FT)
Tiendas minoristas tradicionales	1,182	4,500
Tiendas de salida	76	3,200

Desarrollo y mantenimiento de la plataforma de comercio electrónico

En 2023, la plataforma de comercio electrónico de Cato generó $ 87.4 millones en ventas en línea, lo que representa el 12.6% de los ingresos totales de la compañía.

Estrategias de marketing y participación del cliente

El gasto de marketing para el año fiscal 2023 fue de $ 42.3 millones, lo que representa el 6.1% de los ingresos totales.

Canal de marketing	Asignación de gastos
Marketing digital	52%
Medios tradicionales	28%
Correo directo	12%
Promociones en la tienda	8%

The Cato Corporation (CATO) - Modelo de negocios: recursos clave

Red de tiendas minoristas

A partir del año fiscal 2023, Cato Corporation opera 1,267 tiendas minoristas en 33 estados en el sureste de los Estados Unidos.

Tipo de tienda	Número de ubicaciones
Modas de Cato	1,167
Cato Plus	100

Cartera de marca

Demográfico objetivo principal: Mujeres de 25 a 54 años

• CATO FASHIONS - Brand de ropa para mujeres primarias
• Cato Plus - Línea de ropa de tamaño extendido

Recursos humanos

Total de los empleados cuenta a partir de 2023: 5.800 empleados

Categoría de empleado	Número de empleados
Personal de la tienda minorista	4,900
Sede corporativa	900

Infraestructura digital

La plataforma de comercio electrónico se lanzó en 2018, generando $ 78.3 millones en ventas en línea en el año fiscal 2023.

Gestión de inventario

Valor de inventario al 30 de diciembre de 2023: $ 172.4 millones

Categoría de inventario	Valor
Ropa	$ 145.6 millones
Accesorios	$ 26.8 millones

Recursos financieros

Activos totales al 30 de diciembre de 2023: $ 511.2 millones

• Efectivo y equivalentes de efectivo: $ 42.6 millones
• Total de capital de los accionistas: $ 331.7 millones

The Cato Corporation (CATO) - Modelo de negocio: propuestas de valor

Ropa y accesorios para mujeres asequibles y modernos

A partir de 2023, la corporación CATO reportó ventas netas totales de $ 718.8 millones en ropa y accesorios para mujeres. El precio promedio de la compañía para ropa oscila entre $ 15 y $ 50 por artículo.

Categoría de productos	Rango de precios promedio	Volumen de ventas anual
Vestidos	$25-$45	1,2 millones de unidades
Tops	$15-$35	2.5 millones de unidades
Accesorios	$10-$25	800,000 unidades

Ofertas de moda con inclinación de tamaño

Cato ofrece tamaños que van desde 4 a 24, que cubren el 92% de la demografía del tamaño de las mujeres.

• Rango de tamaño: 4-24
• Colección de tamaño grande: 40% de la línea total de productos
• Precio promedio de artículos de talla grande: $ 32.50

Estrategias de precios competitivos

Cato mantiene una estrategia de fijación de precios competitiva con márgenes brutos del 41,6% en 2023.

Estrategia de precios	Porcentaje	Impacto
Ofertas de descuento	25-40%	Atrae a clientes sensibles a los precios
Ahorros del programa de fidelización	10-15%	Fomenta las compras repetidas

Experiencias de compra convenientes

A partir de 2023, Cato opera 1,268 tiendas minoristas y una plataforma de comercio electrónico totalmente funcional.

• Tiendas físicas: 1,268 ubicaciones
• Lanzamiento de la plataforma de comercio electrónico: 2018
• Crecimiento de ventas en línea: 22% año tras año

Colecciones de moda curadas

Cato lanza 12-15 nuevas colecciones de moda anualmente, con tasas de actualización estacionales cada 6-8 semanas.

Tipo de recolección	Frecuencia	Nuevos estilos promedio
Colecciones estacionales	4 veces al año	250-300 nuevos estilos
Cápsulas basadas en tendencias	8-10 veces al año	100-150 nuevos estilos

The Cato Corporation (CATO) - Modelo de negocios: relaciones con los clientes

Membresía del programa de fidelización

A partir de 2024, Cato Corporation opera un programa de fidelización con las siguientes características:

Métrico	Valor
Miembros del programa de fidelización total	1.2 millones
Tasa de compra anual repetida	42.3%
Gasto promedio por miembro de fidelización	$ 287 por año

Marketing por correo electrónico personalizado

La estrategia de marketing por correo electrónico de Cato incluye:

• Campañas de correo electrónico mensuales: 18 por año
• Tasa de apertura de correo electrónico promedio: 22.6%
• Tasa de clics: 3.4%
• Segmentos de personalización: 7 grupos de clientes distintos

Servicio al cliente en la tienda

Métricas de servicio al cliente para ubicaciones minoristas físicas:

Métrico de servicio	Actuación
Total de tiendas minoristas	1,076 ubicaciones
Personal promedio por tienda	5-7 empleados
Puntuación de satisfacción del cliente	4.2/5

Compromiso de las redes sociales

Rendimiento de la plataforma de redes sociales:

• Seguidores de Instagram: 215,000
• Seguidores de Facebook: 180,000
• Tasa promedio de compromiso posterior: 2.7%
• Interacciones del cliente de las redes sociales por mes: 12,500

Canales de atención al cliente digital y físico

Canal de soporte	Volumen	Tiempo de respuesta
Soporte telefónico	28,000 llamadas/mes	6.2 minutos
Soporte por correo electrónico	15,500 boletos/mes	12.4 horas
Chat en vivo	9,200 chats/mes	3.7 minutos
Soporte en la tienda	45,000 interacciones/mes	Inmediato

The Cato Corporation (Cato) - Modelo de negocios: canales

Tiendas minoristas físicas

A partir de 2023, la corporación CATO operaba 1.307 tiendas minoristas en 33 estados en los Estados Unidos.

Tipo de tienda	Número de ubicaciones	Tamaño promedio de la tienda
Modas de Cato	1,182	3,500 pies cuadrados
Cato Plus	125	4.200 pies cuadrados

Sitio web de comercio electrónico

La plataforma en línea de la compañía, Catofashions.com, generó $ 78.4 millones en ventas digitales en el año fiscal 2022.

• Sitio web lanzado en 2015
• Ofrece una gama de productos completos desde tiendas físicas
• Umbral de envío gratis: $ 50

Aplicación de compras móviles

La aplicación móvil de Cato se descargó 425,000 veces en 2022.

Plataforma	Descargas de aplicaciones	Calificación promedio de usuario
iOS	236,000	4.3/5
Androide	189,000	4.1/5

Plataformas de redes sociales

El seguidor de las redes sociales cuenta a partir de diciembre de 2022:

• Facebook: 672,000 seguidores
• Instagram: 413,000 seguidores
• Pinterest: 285,000 seguidores

Comunicaciones de marketing directo

En el año fiscal 2022, Cato Corporation envió 8.2 millones de catálogos de correo directo y campañas de marketing por correo electrónico.

Canal de marketing	Número de comunicaciones	Tasa de respuesta promedio
Catálogos físicos	3.6 millones	2.3%
Marketing por correo electrónico	4.6 millones	4.7%

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

Mujeres de 25 a 55 años

Demográfico objetivo primario que representa el 62% de la base de clientes de Cato en 2023.

Grupo de edad	Porcentaje	Gasto anual promedio
25-35	22%	$487
36-45	24%	$532
46-55	16%	$456

Consumidores de moda conscientes del presupuesto

Apunte a los clientes con ingresos familiares entre $ 35,000 y $ 75,000.

• Valor de transacción promedio: $ 42.50
• Buscar opciones de moda asequibles
• Sensibilidad al precio: el 67% compare los precios antes de comprar

Mercado de la moda

Segmento dedicado que representa el 28% de la base total de clientes de CATO en 2023.

Rango de tamaño	Cuota de mercado	Valor de compra promedio
14-24	18%	$67.30
24-32	10%	$59.75

Demografía del mercado suburbano y rural

Concentración clave del mercado en áreas no metropolitanas.

• Ubicaciones de la tienda: 92% en regiones suburbanas y rurales
• Ventas en línea de estas áreas: 37% de los ingresos totales de comercio electrónico
• Tamaño promedio de la tienda en estos mercados: 4,200 pies cuadrados

Compradores de ingresos de la moda

Segmento objetivo con ingresos familiares entre $ 50,000 y $ 95,000.

Soporte de ingresos	Porcentaje del cliente	Gastos promedio de ropa anual
$50,000-$75,000	42%	$675
$75,000-$95,000	26%	$845

The Cato Corporation (Cato) - Modelo de negocio: Estructura de costos

Gastos de adquisición de inventario

Para el año fiscal 2022, la corporación CATO reportó un inventario total de $ 119.4 millones. El costo de los bienes vendidos (COGS) fue de $ 368.1 millones.

Categoría de gastos	Cantidad (2022)
Adquisición de inventario de mercancías	$ 119.4 millones
Costo de bienes vendidos	$ 368.1 millones

Alquiler de alquiler y costos operativos

En 2022, los gastos de ocupación total fueron de $ 86.3 millones, que cubren el alquiler de tiendas, servicios públicos y mantenimiento en 1,267 ubicaciones minoristas.

Componente de costo operativo	Cantidad (2022)
Gastos de ocupación total	$ 86.3 millones
Número de tiendas minoristas	1,267

Salario de empleados y capacitación

Los gastos de venta total, general y administrativo para 2022 fueron de $ 245.4 millones, lo que incluye costos de compensación y capacitación de empleados.

• Fuerza laboral total: aproximadamente 6.100 empleados
• Salario anual promedio por empleado: $ 35,800

Gastos de marketing y publicidad

Los gastos de marketing para 2022 fueron de $ 22.1 millones, lo que representa el 1.8% de los ingresos totales.

Categoría de gastos de marketing	Cantidad (2022)
Gastos totales de marketing	$ 22.1 millones
Porcentaje de ingresos	1.8%

Tecnología e inversiones en infraestructura digital

La tecnología y las inversiones en infraestructura digital en 2022 totalizaron $ 12.7 millones.

• Desarrollo de la plataforma de comercio electrónico: $ 5.4 millones
• Actualización de infraestructura de TI: $ 4.2 millones
• Seguridad y sistemas digitales: $ 3.1 millones

The Cato Corporation (CATO) - Modelo de negocios: flujos de ingresos

Venta de ropa y accesorios minoristas

Año fiscal 2023 Ventas minoristas totales: $ 653.4 millones

Categoría de productos	Ingresos ($ M)	Porcentaje
Ropa de mujer	412.7	63.1%
Accesorios	127.9	19.6%
Ropa de talla grande	89.3	13.7%
Ropa para hombres	23.5	3.6%

Transacciones de comercio electrónico en línea

Ventas en línea para el año fiscal 2023: $ 87.6 millones

• Tasa de crecimiento de ventas en línea: 12.3%
• Porcentaje de ingresos totales: 13.4%
• Valor de transacción en línea promedio: $ 78.45

Colecciones de productos estacionales

Desglose de ingresos de la recolección estacional:

Estación	Ingresos ($ M)	Período de ventas máximo
Colección de primavera	142.5	Marzo-mayo
Colección de verano	168.7	Junio-agosto
Colección de otoño	189.3	Septiembre-noviembre
Colección de invierno	153.2	Diciembre-febrero

Ventas de autorización y markdown

Ingresos de ventas de autorización: $ 45.2 millones

• Rango de descuento de Markdown: 30-70%
• Porcentaje de ventas de autorización de los ingresos totales: 6.9%

Programa de fidelización y servicios de tarjeta de crédito

Ingresos del programa de lealtad: $ 36.8 millones

Métrica del programa de fidelización	Valor
Miembros de lealtad total	1.2 millones
Transacciones de tarjeta de crédito	$ 124.6 millones
Gasto promedio de los miembros de fidelización	$ 307 por año

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.