The Company procures most of its merchandise from approximately 100 primary vendors, with the largest vendor accounting for about 14% of total purchases in fiscal 2025. It is not reliant on any single vendor. A significant portion of merchandise is sold under private labels and produced by various vendors according to the Company's specifications. The majority of merchandise is sourced directly from manufacturers overseas, primarily in Southeast Asia and Egypt, who depend largely on materials sourced from China. The remaining merchandise is purchased from domestic importers and vendors, also reliant on materials from China. The Company established its own overseas sourcing operations in 2014. Merchandise is shipped to a distribution center in Charlotte, North Carolina, where it is inspected and allocated to stores based on sales trends, customer profiles, and climatic conditions. Shipments to stores occur at least weekly via common carrier. The Company recognizes risks associated with overseas sourcing, including economic, political, public health, social unrest, trade policies, tariffs, and other disruptions that could materially impact its supply chain and business.
The Cato's Comment on Supply Chain
The Company procures most of its merchandise from approximately 100 primary vendors, with the largest vendor accounting for about 14% of total purchases in fiscal 2025. It is not reliant on any single vendor. A significant portion of merchandise is sold under private labels and produced by various vendors according to the Company's specifications. The majority of merchandise is sourced directly from manufacturers overseas, primarily in Southeast Asia and Egypt, who depend largely on materials sourced from China. The remaining merchandise is purchased from domestic importers and vendors, also reliant on materials from China. The Company established its own overseas sourcing operations in 2014. Merchandise is shipped to a distribution center in Charlotte, North Carolina, where it is inspected and allocated to stores based on sales trends, customer profiles, and climatic conditions. Shipments to stores occur at least weekly via common carrier. The Company recognizes risks associated with overseas sourcing, including economic, political, public health, social unrest, trade policies, tariffs, and other disruptions that could materially impact its supply chain and business.
Sources:
The Cato Corporation's official press releases and regulatory filings; CSIMarket.com's supply-chain research; and the financial filings and press releases of other companies cited in this report.
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