cato20210130
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
10-K
☑
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended
January 29, 2022
or
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number
1-31340
The Cato Corporation
Registrant
Delaware
56-0484485
State of Incorporation
I.R.S. Employer Identification Number
8100 Denmark Road
Charlotte
,
North Carolina
28273-5975
Address of Principal Executive Offices
704
/
554-8510
Registrant’s Telephone
Number
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
Securities registered pursuant to Section 12(g) of the Act:
None
Indicate
by
check
mark
if
the
Registrant
is
a
well-known
seasoned
issuer,
as
defined
in
Rule
405
of
the
Securities
Act.
Yes
☐
No
☑
Indicate by check mark if the
Registrant is not required
to file reports pursuant
to Section 13 or
Section 15(d) of the Exchange
Act.
Yes
☐
No
☑
Indicate by check
mark whether the
Registrant (1) has
filed all reports
required to
be filed by
Section 13 or
15(d) of the
Securities
Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the Registrant was required to file
such reports),
and (2) has been subject to such filing requirements for the past 90 days.
Yes
☑
No
☐
Indicate
by
check
mark
whether
the
registrant
has
submitted
electronically
every
Interactive
Data
File
required
to
be
submitted
pursuant to Rule 405 of
Regulation S-T (§ 232.405
of this chapter) during the preceding
12 months (or for such
shorter period that the
registrant was required to submit such files). Yes
☑
No
☐
Indicate by check
mark whether the
registrant is
a large accelerated
filer, an
accelerated filer,
a non-accelerated
filer, a
smaller
reporting
company,
or
an
emerging
growth
company.
See
the
definitions
of
“large
accelerated
filer,”
“accelerated
filer,”
“smaller
reporting company” and “emerging growth company” in Rule
12b-2 of the Exchange Act.
Large accelerated filer
☐
Accelerated filer
☑
Emerging Growth Company
☐
Non-accelerated filer
☐
Smaller reporting 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.
☐
Indicate
by
check
mark
whether
the
registrant
has
filed
a
report
on
and
attestation
to
its
management’s
assessment
of
the
effectiveness of
its internal
control over
financial reporting
under Section
404(b) of
the Sarbanes-Oxley
Act (15
U.S.C. 7262(b))
by
the registered public accounting firm that prepared or issued its audit report.
☑
Indicate by check mark whether the registrant is a shell company (as defined in Exchange
Act Rule 12b-2). Yes
☐
No
☑
The aggregate market value
of the Registrant’s
Class A Common Stock held
by non-affiliates of the
Registrant as of July 31,
2021,
the last
business day
of the
Company’s
most recent
second quarter,
was $
327,122,516
based on
the last
reported sale
price per
share
on the New York
Stock Exchange on that date.
As
of
January 29,
2022,
there were
19,824,093
shares of
Class
A
co
mmon stock
and
1,763,652
shares of
Class B common
stock
outstanding.
DOCUMENTS INCORPORATED
BY REFERENCE
Portions of the proxy statement relating to the 2022 annual meeting of shareholders are incorporated
by reference into the
following part of this annual report:
Part III — Items 10, 11, 12, 13 and 14
2
THE CATO CORPORATION
FORM 10-K
TABLE OF CONTENTS
Page
PART
I
Item 1.
Business
..........................................................................................................................
5 – 10
Item 1A.
Risk Factors
....................................................................................................................
10 – 21
Item 1B.
Unresolved Staff Comments
...........................................................................................
21
Item 2.
Properties
........................................................................................................................
21
Item 3.
Legal Proceedings
...........................................................................................................
22
Item 3A.
Executive Officers of the Registrant
...............................................................................
23
Item 4.
Mine Safety Disclosures
.................................................................................................
23
PART
II
Item 5.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
........................................................................................
24 – 26
Item 7.
Management’s Discussion and Analysis of Financial Condition and Results
of Operations ..................................................................................................................
27 – 33
Item 7A.
Quantitative and Qualitative Disclosures About Market Risk
........................................
33
Item 8.
Financial Statements and Supplementary Data ..............................................................
34 – 63
Item 9.
Changes in and Disagreements with Accountants on Accounting
and Financial
Disclosure
.......................................................................................................................
64
Item 9A.
Controls and Procedures
.................................................................................................
64
Item 9B.
Other Information
...........................................................................................................
64
Item 9C.
Disclosures Regarding Foreign Jurisdictions That Prevent Inspections
.........................
64
PART
III
Item 10.
Directors, Executive Officers and Corporate Governance .............................................
64
Item 11.
Executive Compensation
................................................................................................
66
Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
........................................................................................................
66
Item 13.
Certain Relationships and Related Transactions, and Director Independence
...............
66
Item 14.
Principal Accountant Fees and Services
.........................................................................
66
PART
IV
Item 15.
Exhibits and Financial Statement Schedules
..................................................................
68
Item 16.
Form 10-K Summary ............................................................................
70
3
Forward-looking Information
The
following
information
should
be
read
along
with
the
Consolidated
Financial
Statements,
including the
accompanying Notes
appearing in
this report.
Any of
the following
are “forward-looking”
statements within the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E
of the Securities Exchange Act of 1934, as amended: (1) statements in this Form 10-K and any documents
incorporated
by
reference
that
reflect
projections
or
expectations
of
our
future
financial
or
economic
performance;
(2) statements
that
are
not
historical information;
(3) statements
of
our
beliefs,
intentions,
plans
and
objectives for
future operations,
including those
contained in
“Management’s
Discussion and
Analysis of
Financial Condition
and Results
of
Operations”; (4) statements
relating to
our operations
or
activities
for
our
fiscal
year
ending
January
28,
2023
(“fiscal
2022”)
and
beyond,
including,
but
not
limited to, statements regarding expected amounts of capital expenditures and store openings, relocations,
remodels and closures,
statements regarding the
potential impact of
the COVID-19 pandemic and
related
responses and
mitigation efforts,
as well
as the
potential impact
of supply
chain disruptions,
inflationary
pressures and other economic conditions on our business, results of operations and
financial condition and
statements
regarding
new
store
development
strategy;
and
(5) statements
relating
to
our
future
contingencies. When possible,
we have attempted
to identify forward-looking
statements by
using words
such
as
“will,”
“expects,”
“anticipates,”
“approximates,”
“believes,”
“estimates,”
“hopes,”
“intends,”
“may,” “plans,”
“could,” “would,” “should” and any
variations or negative formations
of such words and
similar expressions. We
can give no assurance
that actual results or
events will not differ
materially from
those expressed or implied in
any such forward-looking statements. Forward-looking statements included
in
this
report are
based
on information
available to
us as
of
the
filing date
of this
report, but
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,
the
following:
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,
the availability
of credit
and inflation;
changes in
laws,
regulations
or
governmental
policies
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