UNITED STATES
                    SECURITIES AND EXCHANGE COMMISSION
                          WASHINGTON, D.C. 20549

                                FORM 10-K


[ X] ANNUAL  REPORT  PURSUANT  TO SECTION 13 OR  15(d)  OF  THE  SECURITIES
     EXCHANGE ACT OF 1934 [FEE REQUIRED]
                For the fiscal year ended January 28, 1995

                                    OR

[  ] TRANSITION  REPORT PURSUANT TO SECTION 13 OR 15(d) OF  THE  SECURITIES
     EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
     
                    REGISTRANT:  THE CATO CORPORATION
                      COMMISSION FILE NUMBER O-3747

State of Incorporation:  Delaware        I.R.S. Employer Identification
                                               Number:  56-0484485
                                        
Address of Principal Executive            Registrant's Telephone Number:
Offices:                                              704/554-8510
        8100 Denmark Road               
Charlotte, North Carolina  28273-5975     
                                      
SECURITIES REGISTERED PURSUANT TO          SECURITIES REGISTERED PURSUANT
    SECTION 12(b) OF THE ACT:                TO SECTION 12(g) OF THE ACT:
       
               NONE                              CLASS A COMMON STOCK
                                        

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  X   No

Indicate by check mark, if disclosure of delinquent filers pursuant to Item
405  of  the  Regulation  S-K is not contained  herein,  and  will  not  be
contained,  to the best of the Registrant's knowledge, in definitive  proxy
or  information statements incorporated by reference in Part  III  of  this
Form 10-K or any amendment to this Form 10-K.  [ X ]

As  of March 31, 1995, there were 23,132,327 shares of Class A Common Stock
and  5,264,317 shares of Convertible Class B Common Stock outstanding.  The
aggregate market value of the Registrant's Class A Common Stock held by Non-
affiliates  of  the  Registrant  as of March  31,  1994  was  approximately
$113,390,397 based on the last reported sale price per share on the  NASDAQ
National Market System on that date.

Documents incorporated by reference:

Portions of the proxy statement dated April 24, 1995, relating to the  1995
annual  meeting  of  shareholders are incorporated by  reference  into  the
following part of this annual report:

                    Part III - Items 10, 11, 12 and 13

                      THE CATO CORPORATION
                           FORM 10-K
                       TABLE OF CONTENTS
                                                            Page


Part I:

      Item 1.  Business                                      Page 2

      Item 2.  Properties                                    Page 9

      Item 3.  Legal Proceedings                             Page 9

      Item 4.  Results of Votes of Security Holders          Page 9

Part II:

      Item 5.  Market  for  Registrant's
               Common Equity and Related
               Stockholder Matters                           Page 10

      Item 6.  Selected Financial Data                       Page 11      

      Item 7.  Managements' Discussion of
               Analysis of Financial Condition and
               Results of Operations                         Page 12 - 15

      Item 8.  Financial Statements and Supplementary Data   Page 16

      Item 9.  Disagreements on Accounting and Financial     Page 16     
               Disclosures                                    
Part III:

      Item 10. Directors and Executive Officers              Page 17

      Item 11. Executive Compensation                        Page 20

      Item 12. Security Ownership of Certain Beneficial      Page 20 
               Owners and Management  

      Item 13. Certain Relationships and Related Transactions Page 20

Part IV:

      Item 14.  Exhibits, Financial Statement Schedules       Page 21 
                and Reports on Form 8-K

                                                       Page 2
                             PART I

Item 1.  Business:

General

      The  Company, founded in 1946, operated 538 women's apparel
specialty  stores  at January 28, 1995 under  the  names  "Cato,"
"Cato Fashions" and "Cato Plus" in 22 states, principally in non-
metropolitan  markets in the South and Southeast.  The  Company's
merchandising  strategy is to provide a wide  variety  of  value-
priced  merchandise  in misses, junior and large  sizes  for  the
fashion conscious low- to middle-income female customer, aged  18
to  45 and in fiscal 1994 the Company began offering clothing and
accessories  for  girls ages 4 - 14 in selected locations.   With
the objective of offering head-to-toe dressing for its customers,
the  Company's stores feature a broad assortment of  apparel  and
accessories,  including  casual and dressy  sportswear,  dresses,
careerwear, coats, hosiery, shoes, costume jewelry, handbags  and
millinery.  A substantial portion of the Company's merchandise is
sold  under its private labels and is produced by various vendors
in  accordance  with the Company's specifications.   Most  stores
range  in  size from 4,800 to 8,000 square feet and  are  located
primarily  in  strip shopping centers anchored by major  discount
stores.  The Company emphasizes personalized customer service and
coordinated  merchandise  presentations  in  an  appealing  store
environment.  The Company offers its own credit card and  layaway
plan.   Credit and layaway sales represented 32% of retail  sales
in  fiscal  1994.   In addition to its Cato Stores,  the  Company
operated  108 off-price family apparel and accessories stores  at
January 28, 1995 under the name "It's Fashion!"  These stores are
managed   separately  from  the  Cato  stores  with  respect   to
merchandising   and   store   operations   but   use   the   same
administration, distribution and financial systems  as  the  Cato
stores.


Business

     The Company's objective is to be the leading women's apparel
specialty  retailer for fashion conscious low-  to  middle-income
females  in  its  markets.   Management  believes  the  Company's
success is dependent upon its ability to differentiate its stores
from  department  stores, mass merchandise  discount  stores  and
competing  women's  specialty stores.  The key  elements  of  the
Company's business strategy are:

          Merchandise  Assortment.   The  Company's  stores
     offer a wide assortment of apparel and accessory items
     in  regular  and  large  sizes  and  emphasize  color,
     product coordination and selection.

           Value   Pricing.   The  Company  offers  quality
     merchandise that is generally priced below  comparable
     merchandise  offered by department stores and  higher-
     end  specialty  apparel chains but is  generally  more
     fashionable  than  merchandise  offered  by   discount
     stores.
                                                      Page 3
Item 1.  Business:  (continued)


          Strip  Shopping  Center Locations.   The  Company
     locates   its  stores  principally  in  strip  centers
     convenient to our customers anchored by major discount
     stores, such as Wal-Mart and Kmart, that attract large
     numbers of potential customers.

           Customer  Service.   Store  managers  and  sales
     associates are trained to provide prompt and courteous
     service   and   to  assist  customers  in  merchandise
     selection and wardrobe coordination.

          Credit and Layaway Programs.  The Company  offers
     its own credit and a layaway plan to make the purchase
     of its merchandise more convenient.

          Expansion.  The Company plans to open new  stores
     and  relocate or expand existing stores  in  small  to
     medium-sized towns and in selected larger  cities  and
     metropolitan  areas,  principally  in  the  South  and
     Southeast.

Merchandising

  Merchandising

      The  Company  offers  a  broad  selection  of  apparel  and
accessories  to  suit  the  various  lifestyles  of  the  fashion
conscious  low-to  middle-income  female,  aged  18  to  45.   In
addition,  the  Company  features a value pricing  strategy  with
lower initial markups, product quality and consistent merchandise
flow providing color and product coordination.

      The  Company's merchandise lines include dressy and  casual
sportswear, dresses, careerwear, coats, shoes, lingerie, hosiery,
costume  jewelry,  handbags  and  millinery.   In  fiscal   1994,
clothing  and  accessories for girls ages  4  -14  was  added  to
selected Cato stores.  The Company plans to expand these lines to
additional  stores  in  fiscal  1995.   Most  of  the   Company's
merchandise is sold under its private labels.

      In  fiscal  1994, approximately 29% of Cato stores'  retail
sales  represented  merchandise for large size  customers.   This
merchandise  is marketed in its stores under two formats:   as  a
distinct display area in "Cato" and "Cato Fashions" stores and as
a  separate department in the combined "Cato Fashions" and  "Cato
Plus" stores.

                                                      Page 4
Item 1.  Business:  (continued)

      As  a  part of its merchandising strategy, members  of  the
Company's  merchandising staff frequently visit selected  stores,
monitor  the merchandise offerings of other retailers,  regularly
communicate with store operations personnel and frequently confer
with  key  vendors.  The Company tests most new fashion-sensitive
items  in  selected stores to aid it in determining their  appeal
before  making a substantial purchasing commitment.  The  Company
also  takes aggressive markdowns on slow-selling merchandise  and
does not carry over merchandise to the next season.

   Purchasing, Allocation and Distribution

        Although   the   Company   purchases   merchandise   from
approximately  1,500  suppliers,  most  of  its  merchandise   is
purchased  from  approximately 100 primary  vendors.   In  fiscal
1994,  purchases from the Company's largest vendor accounted  for
approximately  8%  of  the Company's total purchases.   No  other
vendor  accounted  for  more than 4%  of  total  purchases.   The
Company  is  not  dependent on its largest vendor  or  any  other
vendor  for  merchandise purchases and the  loss  of  any  single
vendor  or  group  of vendors would not have a  material  adverse
affect on the Company's operating results or financial condition.
A  substantial portion of the Company's merchandise is sold under
its  private  labels  and  is  produced  by  various  vendors  in
accordance  with  the  Company's  specifications.   The   Company
purchases  most  of its merchandise from domestic  importers  and
vendors, which typically minimizes the time necessary to purchase
and  obtain shipments in order to enable the Company to react  to
merchandise  trends  in  a  more  timely  fashion.   Although   a
significant  portion of the Company's merchandise is manufactured
overseas, principally in the Far East, any economic, political or
social  unrest in that region is not expected to have a  material
adverse  affect  on  the  Company's ability  to  obtain  adequate
supplies of merchandise.

      An  important  component of the Company's strategy  is  the
allocation  of  merchandise  to individual  stores  based  on  an
analysis  of  historical and current sales trends by  merchandise
category,   customer   profiles  and  climatic   conditions.    A
computerized   merchandise  control   system   provides   current
information  on the sales activity of each merchandise  style  in
the  Company's  stores.  Point-of-sale terminals  in  the  stores
collect  and  transmit  sales and inventory  information  to  the
Company's central computer, permitting timely response  to  sales
trends on a store-by-store basis.

      All  merchandise  is  shipped  directly  to  the  Company's
distribution  center  in Charlotte, North Carolina  where  it  is
inspected and allocated by the merchandise distribution staff for
shipment  to  individual stores.  The flow  of  merchandise  from
receipt  at the distribution center to shipment is controlled  by
an  on-line  computer  system.   Shipments  are  made  by  common
carrier, and each store receives at least one shipment per week.
                                                      Page 5
Item 1.  Business:  (continued)

  Advertising

     The Company uses direct mail, local newspapers, radio and in-
store  promotional advertising as its primary advertising  media.
Weekly newspaper advertisements typically promote specific  items
or  merchandise  at promotional prices.  The Company  uses  radio
advertising  in  selected  broadcast  areas  that  include   high
concentrations  of  its stores.  The Company's total  advertising
expenditures  were approximately 2.0% of retail sales  in  fiscal
1994.

Store Operations

      The Company's store operations management team consists  of
an  executive vice president, seven regional vice presidents  and
61  district managers.  Regional vice presidents receive a salary
plus a bonus based on achieving targeted goals for sales, payroll
expense,  shrinkage  control and store  profitability.   District
managers  receive  a  salary  plus a  bonus  based  on  achieving
targeted  objectives for district sales increases  and  shrinkage
control.   Stores  are  staffed with  a  manager,  two  assistant
managers  and additional part-time sales associates depending  on
the  size  of  the  stores and seasonal personnel  needs.   Store
managers receive a salary and all other store personnel are  paid
on  an  hourly basis.  Store managers and assistant managers  are
eligible  for monthly and semi-annual bonuses based on  achieving
targeted  goals for their store's sales increases  and  shrinkage
control.

      The  Company has training programs at each level  of  store
operations.   New  store managers are trained in training  stores
managed  by  experienced  personnel who  have  achieved  superior
results  in meeting the Company's goals for store sales,  payroll
expense  and shrinkage control.  The type and extent of  district
manager  training  varies depending on  whether  the  manager  is
promoted from within or recruited from outside the Company.   All
district  managers  receive at a minimum a  one-week  orientation
program at the Company's home office.

Store Locations

      Most  of the Company's stores are located in the South  and
Southeast  in  small to medium-sized towns, with  populations  of
10,000  to  50,000 and retail trade areas of 25,000  to  100,000.
Approximately  150  stores, operating under the  name  "Cato"  or
"Cato   Fashions,"  average  approximately  4,000  square   feet.
Substantially  all of the remaining stores are combination  "Cato
Fashions" and "Cato Plus" stores, ranging in size from  4,800  to
8,000  square  feet.  These combination stores have two  distinct
signs  and selling areas but use a common sales staff and service
desk.
                                                      Page 6
Item 1.  Business:  (continued)

      All of the Company's stores are leased.  Approximately  89%
are  located in strip shopping centers, 3% in downtown  locations
and  8%  in  enclosed  shopping malls.   Where  lease  terms  are
acceptable   and  a  potential  location  meets   the   Company's
demographic  and  other  site-selection  criteria,  the   Company
locates  stores  in  strip  shopping centers  anchored  by  major
discount  stores,  such  as  Wal-Mart  and  Kmart  stores.    The
Company's  strip  center  locations  provide  ample  parking  and
shopping convenience for its customers.

      The  Company's  store  development  activities  consist  of
opening  new  stores,  expanding  certain  existing  stores   and
relocating  other existing stores to more desirable locations  in
the same market area.  The following table sets forth information
with respect to the Company's development activities for its Cato
stores since fiscal 1990.


                     Cato Store Development
                (Excluding It's Fashion Stores)
                      Number of  Stores                       
                               Number    Number    Number of  Stores
Fiscal Year   Beginning of     Opened    Closed     End of Year
                  Year                              

1990             494            10         32           472

1991             472             6         47           431

1992             431            33         26           438

1993             438            65         13           490

1994             490            57          9           538


      The Company intends to open approximately 63 new stores and
to  relocate or expand approximately 40 existing stores in fiscal
1995.   In fiscal 1996, the Company expects to open approximately
63 new stores and to relocate or expand approximately 40 existing
stores.  The Company anticipates that 33 of the 63 new stores  to
be opened in fiscal 1995 and 33 of the 63 new stores to be opened
in fiscal 1996 will be off-price "Its Fashion!" stores.

     The Company periodically reviews its store base to determine
whether any particular store should be closed based on its  sales
trends  and profitability.  The Company intends to continue  this
review  process and to close underperforming stores  or  relocate
them to more desirable locations in their existing markets.
                                                      Page 7
Item 1.  Business:  (continued)

Credit and Layaway

   Credit Card Program

      The Company offers its own credit card, which accounted for
approximately 22% of retail sales in fiscal 1994.  The  Company's
net bad debt expense in fiscal 1994 was 2.8% of credit sales.

      Customers  applying  for  the  Company's  credit  card  are
approved for credit if they have a satisfactory credit record and
meet  a  minimum  income test.  Customers are  required  to  make
minimum monthly payments based on their account balances.  If the
balance  is  not paid in full each month, the Company  charges  a
finance  charge  based on the allowable rates in  the  customer's
state of residence.

   Layaway Plan

      Under the Company's layaway plan, merchandise is set  aside
for  customers who agree to make periodic payments.  The  Company
adds a nonrefundable administrative fee to each layaway sale.  If
no  payment is made for nine weeks, the customer is considered to
have  defaulted, and the merchandise is returned to  the  selling
floor and again offered for sale, often at a reduced price.   All
payments  made  by  customers who subsequently default  on  their
layaway purchase are returned to the customer upon request,  less
the  administrative  fee  and a restocking  fee.   Layaway  sales
represented approximately 10% of retail sales in fiscal 1994.

It's Fashion Stores

      The  Company operated 108 off-price stores at  January  28,
1995 in 11 states in the South and Southeast under the name "It's
Fashion!"   These  stores  are  smaller  than  the  Cato  stores,
averaging  approximately  3,000 square feet,  and  offer  limited
selections  of  first-quality family apparel and  accessories  at
prices  ranging from 20% to 80% off regular retail  prices.   The
Company's  credit  and layaway plans are not available  in  these
stores.  Most of the merchandise for these stores is purchased at
close-out  prices  from manufacturers with excessive  inventories
due  to overruns or order cancellations.  The It's Fashion stores
are  managed  separately  from the Cato stores  with  respect  to
merchandising   and   store   operations   but   use   the   same
administrative, distribution and financial systems  as  the  Cato
stores.   Sales from It's Fashion stores represented 11%  of  the
Company's  retail  sales during fiscal  1994.   As  part  of  its
planned expansion program, the Company currently intends to  open
approximately 33 new It's Fashion stores in fiscal 1995 and 33 in
fiscal 1996.

                                                      Page 8
Management Information Systems

       The   Company's  systems  provide  daily   financial   and
merchandising information that is used by management  to  enhance
the  timeliness  and  effectiveness  of  purchasing  and  pricing
decisions.  Management uses a daily report comparing actual sales
with  planned sales and a weekly best seller/worst seller  report
to  monitor and control purchasing decisions.  Weekly reports are
also  produced which reflect sales, weeks of supply of  inventory
and  other critical data by product categories, by store  and  by
various  levels of responsibility reporting.  Purchases are  made
based  on  projected  sales but can be  modified  to  accommodate
unexpected  increases  or decreases in demand  for  a  particular
item.

      Sales information is projected by merchandise category and,
in  some  cases,  is  further projected  and  actual  performance
measured by stockkeeping unit.  Merchandise allocation models are
used  to  distribute merchandise to individual stores based  upon
historical   sales   trends,   climatic   differences,   customer
demographic differences and targeted inventory turnover rates.

Competition

      The  women's retail apparel industry is highly competitive.
The  Company believes that the principal competitive  factors  in
its  industry  include merchandise assortment  and  presentation,
fashion, price, store location and customer service.  The Company
competes with retail chains that operate similar women's  apparel
specialty  stores.  In addition, the Company competes with  local
apparel  specialty  stores  and,  to  some  degree,  with   major
department stores, general merchandise chains and discount  store
chains.   To the extent that the Company opens stores  in  larger
cities and metropolitan areas, competition is expected to be more
intense in those markets.  Many of the Company's competitors have
substantially  greater financial, marketing and  other  resources
than the Company.

Regulation

      A  variety  of  laws  affect the revolving  credit  program
offered  by  the Company.  The Federal Consumer Credit Protection
Act  (Truth-in  Lending) and Regulation Z promulgated  thereunder
require  written  disclosure  of  information  relating  to  such
financing, including the amount of the annual percentage rate and
the  finance charge.  The Federal Fair Credit Reporting Act  also
requires  certain  disclosures to potential customers  concerning
credit  information used as a basis to deny credit.  The  Federal
Equal   Credit  Opportunity  Act  and  Regulation  B  promulgated
thereunder  prohibit discrimination against any credit  applicant
based on certain specified grounds.  The Federal Trade Commission
has  adopted  or proposed various trade regulation rules  dealing
with  unfair credit and collection practices and the preservation
of  consumers' claims and defenses.  The Company is also  subject
to  the  provisions  of the Fair Debt Collection  Practices  Act,
which regulates the manner in which the Company collects payments
on  revolving credit accounts.  In addition, various  state  laws
regulate  collection  practices, require certain  disclosures  to
credit  customers and limit the finance charges,  late  fees  and
other charges which may be imposed by the Company.
                                                      Page 9
Employees

      As  of January 28, 1995, the Company employed approximately
6,600  full-time  and  part-time  employees.   The  Company  also
employs  additional part-time employees during the peak retailing
seasons.  The Company is not a party to any collective bargaining
agreements and considers that its employee relations are good.

Item 2.  Properties:

      The  Company's distribution center and general offices  are
located  in  a  Company-owned building of  approximately  492,000
square  feet  located  on  a 15-acre tract  in  Charlotte,  North
Carolina.   The  Company's  automated  merchandise  handling  and
distribution activities occupy approximately 418,000 square  feet
of  this  building and its general offices and corporate training
center are located in the remaining 74,000 square feet.

      Substantially all of the Company's retail stores are leased
from  unaffiliated parties.  Most of the leases have  an  initial
term  of five years, with two to three five-year renewal options.
Substantially all of the leases provide for fixed rentals plus  a
percentage of sales in excess of a specified volume.

Item 3.  Legal Proceedings:

     There are no material pending legal proceedings to which the
registrant  or its subsidiaries is a party, or to  which  any  of
their property is subject.

Item 4.  Results of Votes of Security Holders:

     None

                                                       Page 10
                            PART II

Item  5.   Market  for  Registrant's Common  Equity  and  Related
Stockholder Matters

Market & Dividend Information

      The  Company's Class A Common Stock trades in the over-the-
counter  market  under the NASDAQ National Market  System  symbol
CACOA.   Below  is the market range and dividend information  for
the  four quarters of 1994 and 1993.  All per share amounts  have
been  adjusted  to reflect a three-for-two stock  split  effected
June 28, 1993.
_________________________________________________________________
                                
                             Price

1994                     High     Low          Dividend
 
First quarter            $21 1/2   $9 1/2         $.025
Second quarter            14 3/4    9 1/2          .04
Third quarter             12 1/4    8 1/2          .04
Fourth quarter             9 3/4    5 1/2          .04


                             Price
1993                     High      Low         Dividend

First quarter            $21 1/3   $15 7/8        $.013
Second quarter            23 1/2    15 3/4         .025
Third quarter             24 1/2    14 3/4         .025
Fourth quarter            24 3/4    14             .025

- - ----------------------------------------------------------------

      As  of March 31, 1995 the approximate number of holders  of
the  Company's Class A Common stock was 8,000 and there  were  16
record holders of the Company's Class B Common Stock.


Page 11

Item 6.  Selected Financial Data:



THE CATO CORPORATION
SELECTED FINANCIAL DATA

                                                                                                     

                                                              FISCAL YEAR ENDED
                                         January 28, January 29, January 30, February 1, February 2,
                                           1995        1994        1993        1992        1991
                                             (In thousands, except per share and selected operating data)

Statement of Operations Data:
   Retail sales                        $  463,737  $  407,878  $  331,262  $265,115  $  230,308
   Other income                            12,449      12,021       9,494     8,707       7,940
   Total revenues                         476,186     419,899     340,756   273,822     238,248
   Cost of goods sold, including
      occupancy, distribution and
      buying                              324,309     275,090     220,663   180,552     160,079
   Gross margin percent, including
      occupancy, distribution and
      buying                                 30.1 %      32.6 %      33.4 % 31.9 %      30.5 %
   Selling, general and administrative    116,144     100,760      85,667  70,523        74,382
   Depreciation                             6,844       5,465       4,148   4,342         4,914
   Restructuring expense                        -           -           -       -        10,504
   Interest                                   377         250       1,213   3,299         3,365
   Income (loss) before income taxes       28,512      38,334      29,065  15,106       (14,996)
   Income tax expense (benefit)            10,407      13,532      10,597   5,589        (5,006)
   Net income (loss)                   $   18,105  $   24,802  $   18,468  $9,517    $   (9,990)
   Earnings (loss) per share (1)       $     0.62  $     0.84  $     0.71  $0.43     $    (0.45)
   Cash dividends paid per share       $    0.145  $    0.088  $     0.04  $   -     $    0.013

Selected Operating Data:
   Stores open at end of period               646         575         505      487          528
   Average sales per store             $  749,000  $  744,000  $  663,000  $527,000  $   415,000
   Average sales per square foot of
      selling space                    $      172  $      187  $      173  $    142  $      116
   Comparable store sales increase
      (decrease)                              1.0 %       8.1 %      18.6 %  19.9 %      (4.5)%

Balance Sheet Data:
   Working capital                     $   94,581  $   91,569  $   53,862  $33,186   $   25,386
   Total assets                           201,322     178,603     122,225   94,930        83,408
   Long-term debt                               -           -           -   24,891        29,446
   Total stockholders' equity          $  141,508  $  127,533  $   78,216  $30,479   $    19,969


(1)All per share amounts have been adjusted to reflect a three-for-two stock
split effected June 28, 1993.



                                                      Page 12
Item  7.   Managements'  Discussion  and  Analysis  of  Financial
Condition and Results of               Operations:


RESULTS OF OPERATIONS

     The table below sets forth financial data of the Company
expressed as a percentage of retail sales for the periods
indicated:

_________________________________________________________________

                                    Fiscal Year Ended

                         January 28,   January 29,  January 30,
                            1995          1994          1993
                                                    
Retail sales               100.0%        100.0%        100.0%
Other income                 2.7           2.9           2.9
   Total revenues          102.7         102.9         102.9
Cost of goods sold,                                 
   including occupancy,                             
   distribution, and buying 69.9          67.4          66.6
Selling, general and                                
   administrative           25.0          24.7          25.9
Depreciation                 1.6           1.3           1.3
Selling, general,                                   
administrative,
   and depreciation         26.6          26.0          27.2
Income                                              
   before income taxes       6.1           9.4           9.0
Net Income                   3.9%          6.1%          5.6%


Fiscal 1994 Compared to Fiscal 1993

     Retail sales increased by 14% to $463.7 million in fiscal
1994 from $407.9 million in fiscal 1993.  Same-store sales
increased 1% over fiscal 1993.  Total revenues, comprised of
retail sales and other income (principally finance charges on
customer accounts receivable, layaway fees and interest income),
increased 13% to $476.2 million in fiscal 1994 from $419.9
million in fiscal 1993.  The Company operated 646 stores at
January 28, 1995, compared to 575 stores in operation at January
29, 1994.

     The increase in retail sales in the current year resulted
primarily from the Company's store development activities.  In
fiscal 1994, the Company increased selling square footage by
approximately 20% by opening 80 new stores, relocating 30 stores,
and expanding 20 stores while closing 9 existing stores.

                                                       Page 13
     Other income in fiscal 1994 increased 4% over fiscal 1993.
The increase resulted primarily from higher finance charge income
and by increased earnings on cash equivalents and short-term
investments.

     Cost of goods sold, including occupancy, distribution, and
buying was $324.3 million, or 69.9% of retail sales, in fiscal
1994 compared to $275.1 million, or 67.4% of retail sales, in
fiscal 1993.  The increase in cost of goods sold as a percent of
retail sales resulted primarily from higher levels of promotional
markdowns taken in fiscal 1994.  Inventory levels throughout the
year were consistently higher than were needed for the sales
levels achieved, resulting in markdowns above plan and a decrease
in merchandise margins.  Total gross margin dollars (retail sales
less cost of goods sold) increased by 5% to $139.4 million in
fiscal 1994 from $132.8 million in fiscal 1993.

     Selling, general and administrative expenses (SG&A) were
$116.1 million in fiscal 1994, compared to $100.8 million in
fiscal 1993, an increase of 15%.  As a percent of retail sales,
SG&A was 25.0% compared to 24.7% of retail sales in the prior
year.  The overall increase in SG&A resulted primarily from
increased selling-related expenses and increased infrastructure
expenses brought about by the Company's store development
program.

     Depreciation expense was $6.8 million in fiscal 1994,
compared to $5.5 million in fiscal 1993.  The 25% increase in the
current year resulted primarily from additions to property and
equipment from the Company's store development activities.

Fiscal 1993 Compared to Fiscal 1992

     Retail sales increased by 23% to $407.9 million in fiscal
1993 from $331.3 million in fiscal 1992.  Same-store sales
increased 8% over fiscal 1992.  Total revenues, comprised of
retail sales and other income, increased 23% to $419.9 million in
fiscal 1993 from $340.8 million in fiscal 1992.  The Company
operated 575 stores at January 29, 1994 compared to 505 stores
operated at January 30, 1993.

     The improvement in same-store sales in fiscal 1993 following
increases of 19% and 20% in the prior two years reflected the
continued success of the Company's merchandising, marketing
strategies and the Company's commitment to superior customer
service.  The Company's strategy has been to aggressively
increase sales and market share through intensified marketing
efforts, increasing and broadening merchandise assortments and by
improving merchandise allocation and distribution.  Additionally,
the Company's strategy has been to increase sales by expanding
selling square footage through store development activities.  In
fiscal 1993, the Company increased selling square footage by
approximately 21% by opening 86 new stores, relocating or
expanding an additional 46 stores while closing 16 existing
stores.

     Other income in fiscal 1993 increased by 27% over fiscal
1992.  The increase resulted primarily from higher finance charge
income and by increased earnings on cash equivalents and short-
term investments.

     Cost of goods sold, including occupancy, distribution, and
buying was $275.1 million, or 67.4% of retail sales, in fiscal
1993, compared to $220.7 million, or 66.6% of retail sales, in
                                                       Page 14

fiscal 1992.  The increase in cost of goods sold as a percent of
retail sales resulted primarily from higher levels of promotional
markdowns in fiscal 1993's fourth quarter.  Total gross margin
dollars increased by 20% to $132.8 million in fiscal 1993 from
$110.6 million in fiscal 1992.

     SG&A expenses were $100.8 million in fiscal 1993, compared
to $85.7 million in fiscal 1992, an increase of 18%.  As a
percent of retail sales, SG&A improved to 24.7% in fiscal 1993
from 25.9% in fiscal 1992.  The improvement in fiscal 1993
reflected the Company's ability to leverage operating expenses by
maintaining a conservative cost structure.  The overall increase
in SG&A was attributable to increases in selling-related
expenses, increased marketing costs, and the costs related to
fiscal 1993 store closings.  Additionally, expenses relating to
the Company's store development plans contributed to increased
overhead expenses.

     Depreciation expense was $5.5 million in fiscal 1993,
compared to $4.1 million in fiscal 1992.  The 32% increase in
fiscal 1993 resulted primarily from additions to property and
equipment from the Company's store development activities.  The
Company incurred no interest related to long-term debt in fiscal
1993, whereas in fiscal 1992 the Company recorded interest of
$1.2 million on $24.9 million of Subordinated Debentures prior to
their retirement in June 1992.

Liquidity and Capital Resources

     At January 28, 1995, the Company had working capital of
$94.6 million, compared to $91.6 million at January 29, 1994.
Cash provided by operating activities was $33.4 million in fiscal
1994, compared to $6.5 million in fiscal 1993.  The increase in
cash provided by operating activities in fiscal 1994 resulted
primarily from a decrease in the build-up of inventory levels,
which was partially offset by the decrease in net income.  At
January 28, 1995, the Company had $46.2 million in cash, cash
equivalents and short-term investments compared to $42.6 million
at January 29, 1994.

     At January 28, 1995, the Company had an unsecured revolving
credit and term loan agreement which provides for borrowing of up
to $35 million and an additional letter of credit facility of $15
million.  This agreement, which was amended in December 1994, is
committed until May 31, 1998 with the letter of credit facility
renewable on an annual basis.  The Company has the option at any
time during the agreement to convert up to $20 million of
borrowings into a four-year term loan at the lender's prime rate,
repayable in equal quarterly installments.  The Company had no
borrowings under the agreement at January 28, 1995 or January 29,
1994.  The credit agreement contains various financial covenants
and limitations, including maintenance of specific financial
ratios and a limitation on capital expenditures based on a
formula derived from operating results.  Based on the prescribed
formula, the Company is limited to approximately $40.9 million of
capital expenditures in the next fiscal year.  In fiscal 1994,
the Company entered into an agreement to lease $10 million of
store fixtures, point-of-sale devices and warehouse equipment.
The operating lease is for a term of seven years but may be
cancelled annually upon proper notice to the lessor.  Upon notice
of cancellation, the Company would be obligated to purchase the
equipment at a prescribed termination value from the lessor.
Additionally, the Company has the option of leasing up to $15
million more of qualifying assets from the lessor in fiscal 1995.
                                                       Page 15

     Expenditures for property and equipment totaled $25.5
million, $17.2 million and $7.6 million in fiscal 1994, 1993, and
1992, respectively.  The expenditures for fiscal 1994 included,
in addition to store development expenditures, the costs relating
to the expansion of the Company's distribution facility which was
completed and in operation at the end of fiscal 1994.  The
Company intends to open approximately 63 new stores in each of
the next two fiscal years, and to relocate and expand
approximately 40 stores in both fiscal 1995 and 1996. The Company
is currently planning approximately $21.0 million and $19.5
million of capital expenditures in fiscal 1995 and fiscal 1996,
respectively.

     The Company believes that its cash, cash equivalents and
short-term investments, together with cash flow from operations
and borrowings available under its revolving credit and term loan
agreement, will be adequate to fund the Company's proposed
capital expenditures for its store expansion program and other
operating requirements.




                                                      Page 16
Item 8.  Financial Statements and Supplementary Data:

     The response to this Item is submitted in a separate section
of this report.

Item 9.  Disagreements on Accounting and Financial Disclosures:

     None

                                                       Page 17
                            PART III

Item 10.  Directors and Executive Officers:

      The  directors  and executive officers of the  Company  and
their ages as of March 31, 1995 are as follows:
              Name                Age        Position

Wayland H. Cato, Jr. * ++                  72    Chairman of  the
                                                 Board   of   Directors   and
                                                 Chief Executive Officer

Edgar T. Cato                              70   Vice Chairman  of
                                                the Board of Directors

Linda McFarland Jenkins                     47   President  and
                                                 Chief Operating Officer  and
                                                 Director

John P. Derham Cato                         44   Executive Vice President,
                                                 President and General
                                                 Manager - It's Fashion!
                                                 Division and Director 



Alan E. Wiley                               48    Executive  Vice President,    
                                                  Secretary, Chief Financial    
                                                  and Administrative Officer    
                                                  and Director


Howard A. Severson                          47    Executive Vice President,
                                                  Assistant Secretary,      
                                                  Chief Real Estate and         
                                                  Store Development Officer 
                                                  and Director  

David Kempert                               45    Executive  Vice
                                                  President   -  Chief   Store
                                                  Operations Officer

Clarice Cato Goodyear * + +                 48    Executive  Vice
                                                  President    and   Assistant
                                                  Secretary and Director

Patrick J. McIntyre                          50   Senior   Vice
                                                  President - Chief
                                                  Information Officer

Thomas E. Cato                             40     Vice President  -
                                                  Divisional Merchandise
                                                  Manager, Accessories and
                                                  Shoes and Director

Robert W. Bradshaw, Jr. * +                61     Director

George S. Currin * +                       58     Director

Paul Fulton*+                              61     Director

Grant L. Hamrick * +                       56     Director

Robert L. Kirby * +                        64     Director

James H. Shaw * +                          66     Director

A.F.(Pete) Sloan* +                        66     Director

*   Members of Compensation Committee
+   Members of Audit and Stock Option Committees
++  Member of Audit Committee
                                                       Page 18

     Wayland H. Cato, Jr. is Chairman of the Board of Directors
and has been a director of the Company since 1946.  Since 1960,
he has served as the Company's Chief Executive Officer.

     Edgar T. Cato is the Vice Chairman of the Board of Directors
and has been a director of the Company since 1946.  Mr. Edgar  T.
Cato is the brother of Mr. Wayland H. Cato, Jr.

      Linda  McFarland Jenkins joined the Company in  June  1990.
She currently serves as President and Chief Operating Officer and
has  been  a director since 1991.  Prior to joining the  Company,
she  was  Senior Vice President - General Merchandise Manager  of
J.B.  Ivey & Company, a Charlotte, North Carolina based  regional
department store chain, where she was employed for 11 years.

      John P. Derham Cato has been employed as an officer of  the
Company  since 1981 and has served as a director since 1986.   He
currently  serves  as  Executive Vice  President,  President  and
General Manager - It's Fashion! Division.  Mr. John Cato is a son
of Mr. Wayland H. Cato, Jr.

     Alan E. Wiley joined the Company in July 1992.  He currently
serves  as  Executive Vice President, Secretary, Chief  Financial
and  Administrative Officer and has been a director  since  1994.
From  1981  through  1990  he  held  senior  administrative   and
financial  positions  with  British  American  Tobacco,  U.S.  in
various companies of their specialty retail division.  From  1990
until   joining  the  Company,  he  was  President  and  majority
stockholder  of  Gibbs-Louis, Inc.,  an  Orlando,  Florida  based
women's  specialty  store chain.  In May 1992, Gibbs-Louis,  Inc.
filed  a  petition pursuant to the U.S. Bankruptcy Code  and  was
liquidated in June 1992.

      Howard A. Severson has been an officer of the Company since
1985.  He currently serves as Executive Vice President, Assistant
Secretary,  Chief Real Estate and Store Development  Officer  and
has  been  a  director since March 1995.  Prior  to  joining  the
Company,  Mr. Severson served for five years as the  Director  of
Real  Estate  for  Minnesota Fabric Company,  a  Charlotte  based
retail fabric store chain.

       David  Kempert  joined  the  Company  as  Executive   Vice
President - Chief Store Operations Officer in August 1989.   From
1982  until  1989, he was employed by The Gap Stores, an  apparel
specialty  chain, where his most recent position  was  Zone  Vice
President of the Northeast Region.

     Clarice Cato Goodyear has been employed by the Company since
1975  and  has  served as a director and officer of  the  Company
since 1979.  She currently serves as Executive Vice President and
Assistant   Secretary.    Ms.   Goodyear   is   a   daughter   of
Mr. Wayland H. Cato, Jr.

     Patrick J. McIntyre has been an officer of the Company since
1988.   He  currently  serves as Senior Vice  President  -  Chief
Information Officer.  He was previously employed for seven  years
as  Vice  President  of Management Information  Services  at  The
Higbee Company, a Cleveland, Ohio based regional department store chain.
                                                       Page 19

      Thomas E. Cato has been employed by the Company since 1977,
has served as an officer since 1986 and has been a director since
1993.    He   currently  serves  as  Vice  President,  Divisional
Merchandise Manager - Accessories and Shoes.  Mr. Thomas Cato  is
a son of Mr. Wayland H. Cato, Jr.

      Robert  W. Bradshaw, Jr. has been a director of the Company
since  1994.   Since  1961, he has been engaged  in  the  private
practice of law with Robinson, Bradshaw & Hinson, P.A. and  as  a
shareholder,  officer and director of the  firm.   The  law  firm
serves as General Counsel to the Company.

      George  S. Currin has been a director of the Company  since
1973.   From 1978 to 1989, Mr. Currin was the President and Chief
Executive  Officer and a director of Southeastern  Savings  Bank,
Inc.  Since 1989, he has served as Chairman and Managing Director
of  Fourth  Stockton Company and Chairman of Currin  -  Patterson
Properties LLC.

      Paul  Fulton has been a director of the Company since 1994.
From  July  1988 to December 1993, Mr. Fulton served as President
of  Sara  Lee  Corporation.  Since January 1994, Mr.  Fulton  has
served  as  Dean  of  the Kenan-Flagler Business  School  of  the
University  of  North  Carolina at Chapel Hill.   Mr.  Fulton  is
currently a director of Sonoco Products, NationsBank Corporation,
Bassett Furniture Industries, Inc., and Winston Hotels, Inc.

      Grant  L. Hamrick has been a director of the Company  since
1994.   From 1961 to 1985, Mr. Hamrick was employed by the public
accounting  firm Price Waterhouse and served as Managing  Partner
of the Charlotte, North Carolina office.  Since 1989, Mr. Hamrick
has  served as Senior Vice President and Chief Financial  Officer
for American City Business Journals, Inc.

      Robert  L.  Kirby has been a director of the Company  since
1992.    Mr.   Kirby  served  as  Executive  Vice  President   of
NationsBank of North Carolina from 1983 to 1988 and as  President
and  as  director of NationsBank of Florida from 1988  until  his
retirement in 1990.

     James H. Shaw has been a director of the Company since 1989.
Mr.   Shaw  was  Chairman  of  Consolidated  Ivey's,  a  regional
department store chain, from 1988 until his retirement  in  1989,
Chairman and Chief Executive Officer of J.B. Ivey & Company  from
1986  to 1988 and Chairman and Chief Executive Officer of  Ivey's
Carolinas from 1983 to 1986.

      A.F.  (Pete) Sloan has been a director of the Company since
1994.   Mr. Sloan was Chairman of the Board of Lance, Inc.  where
he  was  employed from 1955 until his retirement  in  1990.   Mr.
Sloan  is  currently a director of Lance, Inc., Bassett Furniture
Industries, Inc., PCA International, Inc., and Richfood, Inc.


                                                       Page 20
Item 11.  Executive Compensation:

      Incorporated  by reference to Registrant's proxy  statement
for 1995 annual stockholders' meeting.

Item  12.   Security Ownership of Certain Beneficial  Owners  and
Management:

      Incorporated  by reference to Registrant's proxy  statement
for 1995 annual stockholders' meeting.

Item 13.  Certain Relationships and Related Transactions:

      Incorporated  by reference to Registrant's proxy  statement
      for 1995 annual stockholders' meeting.
                                                       Page 21
                            PART IV

Item 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND
     REPORTS ON FORM 8-K

 (a) 1.& 2.  LIST OF FINANCIAL STATEMENTS AND SCHEDULE

      The  response to this portion of Item 14 is submitted as  a
      separate section of this report.

 (a) 3.     LIST OF EXHIBITS

     See Exhibit Index at page 44 of this annual report.

  (b)       REPORTS ON FORM 8-K

      No  reports on Form 8-K were filed during the quarter ended
      January 28, 1995.




                                                       Page 22
                   ANNUAL REPORT ON FORM 10-K
                                
          ITEM 8, ITEM 14(A), (1) AND (2), (C) AND (D)
                                
           FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
                                
                  LIST OF FINANCIAL STATEMENTS
                                
                        CERTAIN EXHIBITS
                                
                  FINANCIAL STATEMENT SCHEDULE
                                
                   YEAR ENDED JANUARY 28, 1995
                                
                      THE CATO CORPORATION
                                
                    CHARLOTTE, NORTH CAROLINA
                                
                                                       Page 23
ITEM 14(A)  1. AND 2. LIST OF FINANCIAL STATEMENTS AND FINANCIAL
                      STATEMENT SCHEDULE


THE CATO CORPORATION

The  following  consolidated financial  statements  of  The  Cato
Corporation are included in Item 8:


Report of Independent Auditors                           Page 24
Consolidated Statements of Income                        Page 25
Consolidated Balance Sheets                              Page 26
Consolidated Statements of Cash Flows                    Page 27
Consolidated  Statements of Stockholders'  Equity        Page 28
Notes to Consolidated Financial Statements               Pages 29 - 42

The  following consolidated financial statement schedule  of  the
Cato Corporation is included in Item 14 (d):

SCHEDULE II - Valuation and  qualifying accounts          Page 43

All   other schedules are omitted because they are not applicable
or  the required information is shown in the financial statements
or notes thereto.






                                                       Page 24

REPORT OF INDEPENDENT AUDITORS

BOARD OF DIRECTORS AND STOCKHOLDERS
THE CATO CORPORATION

We have audited the accompanying consolidated balance sheets of
The Cato Corporation as of January 28, 1995 and January 29, 1994,
and the related consolidated statements of income, stockholders'
equity, and cash flows for each of the three years in the period
ended January 28, 1995.  Our audits also included the financial
statement schedule listed in the Index at Item 14(a).  These
financial statements and schedule are the responsibility of the
Company's management.  Our responsibility is to express an
opinion on these financial statements and schedule based on our
audits.

We conducted our audits in accordance with generally accepted
auditing standards.  Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement.  An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An
audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation.  We believe that
our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to
above present fairly, in all material respects, the consolidated
financial position of The Cato Corporation at January 28, 1995
and January 29, 1994, and the consolidated results of its
operations and its cash flows for each of the three years in the
period ended January 28, 1995, in conformity with generally
accepted accounting principles.  Also, in our opinion, the
related financial statement schedule, when considered in relation
to the basic financial statements taken as a whole, presents
fairly in all material respects the information set forth
therein.


                                             ERNST & YOUNG LLP


Charlotte, North Carolina
March 10, 1995








Page 25

THE CATO CORPORATION
CONSOLIDATED STATEMENTS OF INCOME

                                                                                                       
                                                                                Fiscal Year Ended                                   
                                                                                January 28,  January 29, January 30,     
                                                                                   1995         1994        1993
   Revenues:                                                                    (In thousands, except per share data)
   Retail sales                                                                 $   463,737 $   407,878   $ 331,262
   Other income (principally finance and layaway charges)                            12,449      12,021       9,494

      Total revenues                                                                 476,186     419,899     340,756

Costs and Expenses:
   Cost of goods sold, including occupancy, distribution and buying                  324,309     275,090     220,663     
   Selling, general and administrative                                               116,144     100,760      85,667 
   Depreciation                                                                        6,844       5,465       4,148                
   Interest                                                                              377         250       1,213

      Total operating expenses                                                       447,674     381,565      311,691

Income Before Income Taxes                                                            28,512      38,334       29,065
   Income tax expense                                                                 10,407      13,532       10,597

Net Income                                                                      $     18,105 $    24,802  $    18,468


Earnings Per Share                                                              $       0.62 $      0.84  $      0.71


Dividends Per Share                                                             $       0.145 $     0.088 $      0.04



See notes to consolidated financial statements.





Page 26

THE CATO CORPORATION
CONSOLIDATED BALANCE SHEETS
                                                                                                           

                                                                            January 28,      January 29,

                                                                              1995             1994

                                                                                    (In thousands)
Assets
Current Assets:
 Cash and cash equivalents                                                   $      23,963    $      22,001
 Short-term investments                                                             22,263           20,613
 Accounts receivable, net of allowance for doubtful accounts of $3,401,000 at
    January 28, 1995 and $3,162,000 at January 29, 1994                             37,926           36,814
 Merchandise inventories                                                            54,674           55,814
 Deferred income taxes                                                               2,053            1,607
 Prepaid expenses                                                                    2,602            1,935
    Total Current Assets                                                           143,481          138,784
Property and Equipment                                                              53,146           35,497
Other Assets                                                                         4,695            4,322
                   Total Assets                                               $    201,322    $     178,603


Liabilities and Stockholders' Equity
Current Liabilities:
 Accounts payable                                                             $      36,159    $      34,547
 Accrued expenses                                                                    11,832           12,668
 Income taxes                                                                           909                -
    Total Current Liabilities                                                        48,900           47,215
Deferred Income Taxes                                                                 4,192            3,482
Other Noncurrent Liabilities                                                          6,722              373
Stockholders' Equity:

 Class A Common Stock, $.033 par value per share, 50,000,000 shares authorized;
    23,132,327 shares issued and outstanding at January 28, 1995 and 23,078,208
    shares issued and outstanding at January 29, 1994                                   770              769
 Convertible Class B Common Stock, $.033 par value per share, 15,000,000 shares
    authorized; 5,264,317 shares issued and outstanding at January 28, 1995 and
   January 29, 1994                                                                     176              176
 Preferred Stock, $100 par value per share, 100,000 shares authorized,
    none issued                                                                           -                -
 Additional paid-in capital                                                          62,278           61,753
 Retained earnings                                                                   78,284           64,835

    Total Stockholders' Equity                                                      141,508          127,533

                  Total Liabilities and Stockholders' Equity                  $     201,322    $     178,603




 See notes to consolidated financial statements.




Page 27

THE CATO CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                          
                                                                                       Fiscal Year Ended
                                                                              January 28,      January 29,     January 30,
                                                                                 1995             1994            1993
                                                                                            (In thousands)
Operating Activities
Net income                                                                   $    18,105        $24,802         $18,468
Adjustments to reconcile net income to net cash provided by
  operating activities:
  Depreciation                                                                      6,844         5,465           4,148
  Amortization of investment premiums                                                 235           720               -
  Deferred income taxes                                                               575         1,161            (140)
  Loss on disposal of property and equipment                                          352             -             123
  Changes in assets and liabilities:
     (Increase) in accounts receivable                                             (1,112)       (9,077)         (4,468)
     (Increase) decrease in merchandise inventories                                 1,140       (22,072)         (6,399)
     (Increase) decrease in other assets                                           (1,040)       (1,294)            719
     Increase (decrease) in accrued income taxes                                      909        (1,198)         (3,060)
     Increase in accounts payable and other liabilities                             7,386         7,995           7,080

  Net cash provided by operating activities                                        33,394         6,502          16,471

Investing Activities
  Expenditures for property and equipment                                         (25,484)      (17,214)         (7,646)
  Proceeds from sale of property and equipment                                        378           -               -
  Purchases of short-term investments                                             (11,882)      (34,081)         (3,829)
  Sales of short-term investments                                                   9,145        16,577               -

  Net cash used in investing activities                                           (27,843)      (34,718)        (11,475)

Financing Activities
  Dividends paid                                                                   (4,115)       (2,499)         (1,063)
  Proceeds from employee stock purchase plan                                          435            -               -
  Proceeds from stock options exercised                                                91         1,459             348
  Proceeds from sale of common stock                                                   -         24,262          29,984
  Income tax benefit from stock options exercised                                      -          1,293               -
  Repayments of life insurance policy loans                                            -           (203)              -
  Retirement of subordinated debentures                                                -              -         (24,981)

  Net cash provided by (used in) financing activities                              (3,589)       24,312           4,288

Net Increase (Decrease) in Cash and Cash Equivalents                                1,962        (3,904)          9,284
Cash and Cash Equivalents at Beginning of Year                                     22,001        25,905          16,621

Cash and Cash Equivalents at End of Year                                      $    23,963       $22,001   $      25,905



See notes to consolidated financial statements.



THE CATO CORPORATION
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

                                                                                                          
                                                       Convertible
                                            Class A    Class B   Additional
                                             Common    Common    Paid-in        Retained      Treasury
                                             Stock     Stock     Capital        Earnings      Stock

                                                           (In thousands)


Balance - February 1, 1992               $    501      $   188    $   11,504    $   25,127    $   6,841

    Net income                                                                      18,468
    Dividends paid ($.04 per share)                                                 (1,063)
    Sale of Class A Common Stock - 2,875,000   95                     29,889
    Treasury shares sold through
       stock option plans - 55,200 shares                                322                        (26)
    Shares converted from Class B
       Common Stock to Class A
       Common Stock - 246,021 shares           12          (12)

Balance - January 30, 1993                    608           176         41,715      42,532         6,815

    Net income                                                                      24,802
    Dividends paid ($.088 per share)                                                (2,499)
    Sale of Class A Common Stock -             34                       24,228
     1,012,500 shares
    Class A Common Stock sold through
       stock option plans - 178,550 shares      6                        1,193
    Treasury shares sold through
       stock option plans - 23,300 shares                                   249                      (11)
    Retirement of treasury stock -
       5,778,970 shares                      (192)                       (6,612)                  (6,804)
    Three-for-two stock split -
       9,395,385 shares of Class A Common Stock 313                        (313)
    Income tax benefit from stock options
       exercised                                                           1,293
    Shares converted from Class B Common
       Stock to Class A Common Stock -
       18,000 shares                             -              -
Balance - January 29, 1994                      769             176       61,753    64,835           -

    Net income                                                                      18,105
    Dividends paid ($.145 per share)                                                (4,115)
    Class A Common Stock sold through
      employee stock purchase plan - 41,769
      shares                                      1                          434
    Class A Common Stock sold through
      stock option plans - 12,350 shares          -                           91
    Unrealized losses on available for
      sale securities, net of an income tax
      benefit of $311,000                                                             (541)

    Balance - January 28, 1995               $   770         $   176  $   62,278 $   78,284    $     -

See notes to consolidated financial statements.



                                                       Page 29
THE CATO CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.   Summary of Significant Accounting Policies:

     Principles of Consolidation - The consolidated financial
statements include the accounts of the Company and its wholly-
owned subsidiaries.  All significant intercompany balances and
transactions have been eliminated.

     Description of Business and Fiscal Year - The Company has
principally one segment of business - operation of women's
apparel specialty stores.  The Company's fiscal year ends on the
Saturday nearest January 31.

     Cash Equivalents and Short-Term Investments - Cash
equivalents consist of highly liquid investments with original
maturities of three months or less.  Investments with original
maturities beyond three months are classified as short-term
investments. The fair value of short-term investments are based
on quoted market prices.

     The Company adopted Statement of Financial Accounting
Standards (SFAS 115) Accounting for Certain Investments in Debt
and Equity Securities in fiscal 1994.  In accordance with the
guidelines set forth in SFAS 115, the Company has determined that
short-term investments held at January 28, 1995 should be
classified as available-for-sale.  Available for sale securities
are carried at fair value, with unrealized gains and losses, net
of income taxes, reported as an adjustment to retained earnings.
In accordance with SFAS 115, prior years' financial statements
have not been restated to reflect the change in accounting
method.  There was no cumulative effect as a result of adopting
SFAS 115 in fiscal 1994. At January 29, 1994, short-term
investments were carried at amortized cost which approximated
market value. The amortized cost of debt securities is adjusted
for amortization of premiums and accretion of discounts to
maturity.  The amortization of premiums, accretion of discounts,
and realized gains and losses are included in other income.

     Accounts Receivable - Accounts receivable include customer
trade accounts, customer layaway receivables and miscellaneous
trade receivables.  Customer receivables related to layaway sales
are reflected net of a reserve for unrealized profit.  Net
layaway receivables amounted to approximately $2,019,000 and
$2,004,000 at January 28, 1995 and January 29, 1994,
respectively.

     Supplemental Cash Flow Information - Interest paid during
the fiscal years ended January 28, 1995, January 29, 1994, and
January 30, 1993 was $202,000, $271,000, and $1,534,000
respectively.  Income tax payments, net of refunds received, for
the fiscal years ended January 28, 1995, January 29, 1994, and
January 30, 1993 were $8,495,000, $12,828,000 and $13,967,000,
respectively.

     Inventories - Merchandise inventories are stated at the
lower of cost (first-in, first-out method) or market as
determined by the retail method.



                                                       Page 30
     Property and Equipment - Property and equipment are recorded
at cost.  Maintenance and repairs are charged to operations as
incurred; renewals and betterments are capitalized.  Depreciation
of property and equipment is provided on the straight-line method
over the estimated useful lives of the related assets.

     Retail Sales - Revenues from retail sales (including layaway
transactions) are recognized at the time of the sale, net of
returns, and exclude sales taxes.

     Advertising - Advertising costs are expensed in the period
in which they are incurred.  Advertising expense was $9,046,000,
$7,350,000 and $4,988,000 for the fiscal years ended January 28,
1995, January 29, 1994, and January 30, 1993, respectively.

     Earnings Per Share - Earnings per share have been computed
based on the weighted average number of Class A and Class B
common shares and common stock equivalents outstanding during the
respective periods.  Common stock equivalents represent the
dilutive effect of the assumed exercise of outstanding stock
options.  The number of shares used in the earnings per share
computations were 29,113,091, 29,655,394, and 26,012,639 for the
fiscal years ended January 28, 1995, January 29, 1994, and
January 30, 1993, respectively. All per share amounts have been
adjusted to reflect a three-for-two stock split effected June 28,
1993.

     Income Taxes - The Company and its subsidiaries file a
consolidated federal income tax return.  Income taxes are
provided based on the liability method of accounting, whereby
deferred income taxes are provided for temporary differences
between the financial reporting basis and the tax basis of the
Company's assets and liabilities.

     Store Opening Costs - Costs relating to the opening of new
stores or the relocating or expanding of existing stores are
expensed as incurred.

     Closed Store Lease Obligations - At the time stores are
closed, provision is made for the rentals required to be paid
over the remaining lease terms.  Rentals due the Company under
non-cancelable subleases are offset against the related
obligations in the year the sublease is signed.  There is no
offset for assumed sublease revenues.

     Reclassifications - Certain reclassifications have been made
to the consolidated financial statements for prior fiscal years
to conform with classifications used as of January 28, 1995.


                                                       Page 31
2.   Short-Term Investments:

     Short-term investments at January 28, 1995, include the following:
     (In thousands)
                                                   Unrealized      Estimated
Security Type                         Cost             Loss         Fair Value

Obligations of states and political
   subdivisions                    $  16,567       $ (120)           $ 16,447

Corporate debt securities              2,000         (160)              1,840

          Subtotal                    18,567         (280)             18,287

Equity securities                      4,548         (572)              3,976

          Total                     $ 23,115        $ (852)          $ 22,263

The amortized cost and estimated fair value of debt and
marketable equity securities at January 28, 1995, by contractual
maturity, are shown below: (In thousands)

                                                          Estimated
Security Type                         Cost                Fair Value

Due in one year or less            $  16,290           $   16,027
Due in one year through three years    2,277                2,260

          Subtotal                    18,567               18,287

Equity securities                      4,548                3,976

      Total                         $ 23,115             $ 22,263


The unrealized loss of $541,000, net of an income tax benefit of
$311,000, is included in stockholders' equity as an adjustment to
retained earnings.






                                                       Page 32
3.   Accounts Receivable:

     Accounts receivable consist of the following:

                                   January 28,         January 29,
                                       1995                1994
                                                    (In thousands)

Customer accounts-
   principally deferred
   payment accounts                     $ 38,291       $ 37,250
Miscellaneous trade
   receivables                             3,036          2,726
        Total                             41,327         39,976
Less allowance for
   doubtful accounts                       3,401          3,162

Accounts receivable - net              $  37,926      $  36,814

     Finance charge and late charge revenue on customer deferred
payment accounts were $6,324,000, $5,539,000, and $4,490,000 for
the fiscal years ended January 28, 1995, January 29, 1994, and
January 30, 1993, respectively, and the provision for doubtful
accounts was $2,888,000, $1,352,000, and $1,489,000 for the
fiscal years ended January 28, 1995, January 29, 1994, and
January 30, 1993, respectively.  The provision for doubtful
accounts is classified as a component of selling, general and
administrative expenses.

                                                       Page 33
4.   Property and Equipment:

     Property and equipment consist of the following:

                                   January 28,         January 29,
                                      1995                1994
                                             (In thousands)

Land and improvements              $      763          $       646
Buildings                               6,751                4,654
Leasehold improvements                 12,811                7,051
Fixtures and equipment                 49,897               43,087
Construction in progress               14,352                5,095
   Total                               84,574               60,533
Less accumulated
   depreciation                        31,428               25,036

Property and equipment - net       $   53,146            $  35,497


     Depreciation expense was $6,844,000, $5,465,000, and
$4,148,000 for the fiscal years ended January 28, 1995, January
29, 1994, and January 30, 1993.

                                                       Page 34
5.   Accrued Expenses:

     Accrued expenses consist of the following:

                                   January 28,           January 29,
                                      1995                  1994
Accrued bonus and retirement
   savings plan contributions       $    1,787           $    4,488
Accrued payroll and related items        4,472                3,088
Closed stores                              486                  290
Property taxes                           1,018                  816
Contingent rent                            735                  934
Advertising                                267                  453
Accrued credit expenses                    306                  167
Accrued data processing expenses           280                  181
Restructuring reserve                        -                  576
Other                                    2,481                1,675

Total accrued expenses              $   11,832            $  12,668





                                                       Page 35
6.   Financing Arrangements:

     On January 28, 1995, the Company had an unsecured revolving
credit and term loan agreement which provides for borrowings of
up to $35 million and an additional letter of credit facility of
$15 million.  The agreement, which was amended in December 1994,
is committed until May 31, 1998 with the letter of credit
facility renewable annually.  The Company has the option at any
time during the agreement period to convert up to $20 million of
borrowings into a four-year term loan at the lender's prime rate,
repayable in equal quarterly installments.  The agreement
contains various financial covenants including the maintenance of
specific financial ratios.  There were no borrowings outstanding
under this agreement at January 28, 1995 or January 29, 1994.

     The Company had approximately $8,607,000 and $7,178,000 at
January 28, 1995 and January 29, 1994, respectively, of
outstanding irrevocable letters of credit relating to purchase
commitments.  Upon satisfaction of the terms of the letters of
credit, the Company is obligated to pay the issuing bank the
dollar amount of the commitment.
                                                       Page 36
7.   Stockholders' Equity:

     The holders of Class A Common Stock are entitled to one vote
per share, whereas the holders of Class B Common Stock are
entitled to ten votes per share.  Each share of Class B Common
Stock may be converted at any time into one share of Class A
Common stock.  Subject to the rights of the holders of any shares
of Preferred Stock that may be outstanding at the time, in the
event of liquidation, dissolution or winding up of the Company,
holders of Class A Common stock are entitled to receive a
preferential distribution of $1.00 per share of the net assets of
the Company.  Cash dividends on the Class B Common Stock cannot
be paid unless cash dividends of at least an equal amount are
paid on the Class A Common Stock.

     The Company's charter provides that shares of Class B Common
stock may be transferred only to certain "Permitted Transferees"
consisting generally of the lineal descendants of holders of
Class B stock, trusts for their benefit, corporations and
partnerships controlled by them and the Company's employee
benefit plans.  Any transfer of Class B Common Stock in violation
of these restrictions, including a transfer to the Company,
results in the automatic conversion of the transferred shares of
Class B Common Stock held by the transferee into an equal number
of shares of Class A Common Stock.

     In February 1993, the Company issued 1,012,500 shares of
Class A Common Stock in a public offering at an offering price of
$25.50 per share.  The net proceeds of $24,262,000 were added to
working capital and are being used to fund the Company's store
development plans and for general corporate purposes.

     In May 1993, the Company amended its Certificate of
Incorporation to increase the number of authorized shares of
Class A Common Stock to 50,000,000 shares from 25,000,000 shares
and to permit distributions of Class A Common Stock or Class B
Common Stock to holders of Class B Common Stock in the event of
any dividend or other distribution payable in stock of the
Company.  Additionally, in May 1993, the Company retired all of
the shares of Class A Common Stock that were held in treasury at
their aggregate cost of $6,804,000.

     In June 1993, the Company effected a three-for-two stock
split in the form of a stock dividend.  The split resulted in the
issuance of 9,395,385 shares of Class A Common Stock to Class A
and B shareholders.  All references in the financial statements
to average numbers of shares outstanding and related prices, per
share amounts and stock option plan data have been restated to
reflect the split.

     In October 1993, the Company registered 250,000 shares of
Class A Common Stock available for issuance under an Employee
Stock Purchase Plan (the plan).  Under the terms of the Plan,
substantially all employees may purchase Class A Common Stock
through payroll deductions of up to 10% of their salary.  The
Class A Common Stock is purchased at the lower of 85% of market
value on the first or last business day of a six-month payment
period.  Additionally, each April 15, employees are given the
opportunity to make a lump sum purchase of up to $10,000 worth of
Class A Common Stock at 85% of market value.  During the year
ended January 28, 1995, 41,769 shares of Class A Common Stock
were purchased by participants through the plan.


                                                       Page 37

     In 1987, the Company adopted an Incentive Stock Option Plan
and a Non-Qualified Stock Option Plan for key employees of the
Company.  In 1991, the Board of Directors of the Company amended
the 1987 option plans increasing the number of shares reserved
under the plans from 2,100,000 shares to 3,150,000 shares.  In
1994, the Board of Directors increased the number of shares
issuable under the plans to 3,900,000 shares of which 825,000
shares are issuable under the Incentive Stock Option Plan and
3,075,000 shares are issuable under the Non-Qualified Stock
Option Plan.  The purchase price of the shares under option must
be at least 100 percent of the fair market value of the Common
Stock at the date of the grant and must be exercisable not later
than 10 years after the date of the grant unless otherwise
expressly authorized by the Board of Directors.

     Option plan activity for the three fiscal years ended
January 28, 1995 is set forth below:

                                      Number of        Price Per
                                        Shares            Share

Outstanding options,
   February 1, 1992                   2,534,100      $1.33 -$9.50
   Granted                              146,250       8.00 -13.17
   Exercised                            (82,800)      .33 -  7.50
   Cancelled                            (96,000)     2.75 -  7.63

Outstanding options,
   January 30, 1993                   2,501,550       1.33 - 13.17
   Granted                              226,750         7.50-23.06
   Exercised                           (224,750)      1.50 - 13.17
   Cancelled                            (50,700)      1.50 - 19.17

Outstanding options,
   January 29, 1994                   2,452,850       1.33 - 23.06
   Granted                              584,500       6.75 - 17.13
   Exercised                            (12,350)     3.25 -   8.00
   Cancelled                            (32,700)      3.25 - 20.67

Outstanding options,
   January 28, 1995                   2,992,300       1.33 -$23.00

Exercisable at
   January 28, 1995                   1,787,200      $1.33 -$23.00

Outstanding options at January 28, 1995 covered 927,918 shares of
Class B Common Stock and 2,064,382 shares of Class A Common
Stock.  Outstanding options at January 29, 1994 covered 927,918
shares of Class B Common Stock and 1,524,932 shares of Class A
Common Stock.  Options available to be granted under the option
plans were 387,700 shares at January 28, 1995, and 189,500 shares
at January 29, 1994.
                                                       Page 38

8.   Employee Benefit Plans:

     The Company has a defined contribution retirement savings
plan (401(k)) which covers all employees who meet minimum age and
service requirements.  The 401 (k) plan allows participants to
contribute up to 16% of their annual compensation.  The Company
is obligated to make a minimum contribution and further Company
contributions, at the Board of Directors discretion, are based on
a formula of percentages of pre-tax profits.  The Company's
contributions for the years ended January 28, 1995, January 29,
1994, and January 30, 1993 were approximately $1,278,000,
$2,272,000 and $2,237,000, respectively.  The Company has an
Employee Stock Ownership Plan (ESOP), which covers substantially
all employees who meet minimum age and service requirements.  The
Board of Directors determines contributions to the ESOP.  No
contributions were made to the ESOP for the years ended January
28, 1995, January 29, 1994 and January 30, 1993, respectively.
                                                       Page 39
9.   Leases:

     The Company has operating lease arrangements for store
facilities and equipment.  Facility leases generally are for
periods of five years with renewal options, and most provide for
additional contingent rentals based on a percentage of store
sales in excess of stipulated amounts.  Equipment leases are
generally for three - to seven - year periods.  In fiscal 1994,
the Company entered into an agreement with a lessor to lease $10
million of store fixtures, POS devices and warehouse equipment.
The lease, which is being accounted for as an operating lease, is
for a term of seven years but may be cancelled annually upon
proper notice to the lessor. Upon notice of cancellation, the
Company would be obligated to purchase the equipment at a
prescribed termination value from the lessor.  At the end of the
initial lease year, if the lease was cancelled, the purchase
price for the equipment would be approximately $9,173,000.

     The minimum commitments relating to future payments under
non-cancelable operating leases are (in thousands):

          Fiscal
          Year
          1995                     $ 28,414
          1996                       24,068
          1997                       19,902
          1998                       12,999
          1999                        8,068
          2000 and thereafter        13,530

          Total minimum lease payments  $106,981

The following schedule shows the composition of total rental
expense for all leases:


                                    Fiscal Year Ended

                    January 28,         January 29,   January 30,
                       1995                1994          1993
                                   (In thousands)

Minimum rentals      $ 24,817           $ 20,180       $ 17,025
Contingent rentals        658                872            672

Total rent           $ 25,475           $ 21,052       $ 17,697








                                                       Page 40
10.  Income Taxes

     The provisions for income taxes consist of the following:

                                    Fiscal Year   
                                       Ended
                         January    January 29,    January
                           28,                       30,
                          1995         1994         1993
                                        (In           
                                    thousands)
                                                      
Current income taxes:                                 
   Federal               $9,681       $10,488      $10,007
   State                    151           590          730
      Total               9,832        11,078       10,737
                                                  
Deferred income taxes:                            
   Federal                  518         1,061         (104)
   State                     57           100          (36)
      Total                 575         1,161          (140)
                                                  
Allocation of tax                                 
benefit to
   capital for stock                              
options
   exercised                -           1,293            -
                        $10,407       $13,532        $10,597
                                                  
The components of the provision for deferred income taxes
(benefit) are as follows:

                                   Fiscal Year    
                                   Ended
                         January 28,  January 29,    January 30,
                            1995         1994           1993
                                    (In thousands)
                                                      
Depreciation                $901         $ 74         $ (807)
Provision for doubtful                            
accounts                     (86)         206             85
Restructuring expenses                            
                              18          418            405
Inventory valuation                               
                             (50)         (41)           (41)
Self-insurance reserve       (12)         113           (113)
Change in tax rate             -           13              -
Other                       (196)         378            331
                                                  
Total                       $575       $1,161          $(140)



                                                       Page 41

Significant components of the Company's deferred tax assets and
liabilities as of January 28, 1995 and January 29, 1994, are as
follows:

                                    Fiscal Year Ended

                            January 28,                   January 29,
                               1995                          1994
                                         (In thousands)

Deferred tax assets:
   Bad debt reserve            $  1,329                     $  1,233
   Inventory valuation              435                          393
   Unrealized losses on short-
      term investments              311                            -
   Reserves                         992                          327
   Total deferred tax assets      3,067                        1,953

Deferred tax liabilities:
   Tax over book depreciation     4,607                        3,355
   Other, net                       599                          473
   Total deferred tax liabilities 5,206                        3,828

Net deferred tax liabilities    $ 2,139                   $    1,875

     The reconciliation of the Company's effective income tax
rate with the statutory rate is as follows:


                                    Fiscal Year Ended

                         January 28,         January 29,     January 30,
                            1995                1994            1993
                                           (In thousands)

Federal income
   tax rate                   35.0%               35.0%            34.0%
State income taxes             0.5                 1.3              1.5
Other                          1.0                (1.0)             1.0

Effective income
   tax rate                   36.5%               35.3%            36.5%





                                                       Page 42

11.  Quarterly Financial Data (Unaudited):

     Summarized quarterly financial results are as follows (in
thousands, except per share data):

                            First       Second       Third        Fourth
Fiscal 1994:               Quarter      Quarter     Quarter      Quarter
Retail Sales              $ 110,105 $ 110,196 $ 109,111 $ 134,325
Total revenues              113,131   113,263   112,212   137,580
Cost of goods sold,                                  
including                                         
occupancy,
distribution, and buying     70,781    77,020    77,505    99,003
Net income                 $  8,210  $  4,325  $  2,799  $  2,771
Earnings per share         $    .28  $    .15  $    .10  $    .10
                                                     
                                                     
                                                         
Fiscal 1993:                                             
Retail Sales                $ 93,942  $ 95,502 $  94,598 $ 123,836
Total revenues                96,705    98,358    97,524    127,312
Cost of goods sold,                                  
including                                         
occupancy,
distribution and                                  
buying                        57,872    63,835    64,567    88,816
Net income                  $  9,395  $  5,841 $   4,436  $  5,130
Earnings per share          $    .32  $    .20 $     .15  $    .17
                                                     










Page 43
                                
                           SCHEDULE II
                VALUATION AND QUALIFYING ACCOUNTS
                                

                                   Allowance   Reserve       
                                     for       for         
                                   Doubtful    Rental        Restructuring
                                   Accounts(a) Commitment(b) Reserve
                                          (In thousands)
                                                           
Balance at February 1, 1992        $  4,000    $  395        $  3,919
Additions charged to costs and                       
expenses                              1,489         -               -
  Additions charged to other                           
accounts                                681(d)      -               -
  Deductions                         (2,420)(c)  (228)         (2,336)
                                                       
Balance at January 30, 1993           3,750       167           1,583
  Additions charged to costs and                       
expenses                              1,352       268              -
  Additions (Deductions) charged                       
to other accounts                       605(d)    269(e)         (269)
   Deductions                        (2,545)(c)  (414)           (681)
                                                       
Balance at January 29, 1994                            
                                      3,162        290            633
  Additions charged to costs and                       
expenses                              2,888        825             -
  Additions (Deductions) charged        
  to other accounts                     843(d)       -              -  
  Deductions                         (3,492)(c)   (700)          (563)
                                                       
Balance at January 28, 1995         $ 3,401      $ 415           $ 70
                                                       
(a)  Deducted from trade accounts receivable

(b)  Provision for the difference between costs and revenues from
     noncancelable subleases over the
     lease terms of closed stores.

(c)  Uncollectible accounts written off.

(d)  Recoveries of amounts previously written off.

(e)  Transferred from restructuring reserve.



                                                       Page 44

                         EXHIBIT INDEX

Designation of
   Exhibit                                                  Page

 10.5.0   Loan agreement, dated December 16, 1994 between
          The Cato Corporation and NationsBank of North
          Carolina and Wachovia Bank of North Carolina, N.A.,
          incorporated by reference to Form 10-K of the
          Registrant  for the fiscal year ended January  30, 1993

10.6      Lease agreement dated January 27, 1995 between The Cato
          Corporation and NationsBank of North Carolina N.A.

 22       Subsidiary of the Registrant                          45

 23       Consent of Independent Auditors                       46


                                                       Page 45

                           EXHIBIT 22

                 SUBSIDIARIES OF THE REGISTRANT


 Name of                   State of             Name under which
Subsidiary                 Incorporation        Subsidiary does Business

C.H.W. Corporation          Delaware             C.H.W. Corporation
                                        


                                                          Page 46

                           EXHIBIT 23
                                
                 CONSENT OF INDEPENDENT AUDITORS


We  consent to the incorporation by reference in the Registration
Statement  (Form  S-8  No.  33-41314)  pertaining  to  The   Cato
Corporation  Employee  Incentive  Stock  Option  Plan,   in   the
Registration Statement (Form S-8 No. 33-41315) pertaining to  The
Cato  Corporation  Non-qualified Stock Option Plan,  and  in  the
Registration Statement (Form S-8 No. 33-69844) pertaining to  The
Cato  Corporation  Employee Stock Purchase Plan,  of  our  report
dated  March 10, 1995, with respect to the consolidated financial
statements and schedule of The Cato Corporation included  in  the
Annual Report (Form 10-K) for the year ended January 28, 1995.


                                             ERNST & YOUNG LLP


Charlotte, North Carolina
April 21, 1995

                                                      Page 47

                           SIGNATURES


      Pursuant to the requirements of Section 13 or 15(d) of  the
Securities Exchange Act of 1934, Cato has duly caused this report
to  be  signed  on its behalf by the undersigned, thereunto  duly
authorized.

                                   The Cato Corporation

By /s/ Wayland H. Cato, Jr.                By /s/ Robert M. Sandler
   ___________________________             ________________________
   Wayland H. Cato, Jr.                    Robert M. Sandler
   Chairman  of  the Board  of             Senior Vice President
   Directors and                           Controller
   Chief Executive Officer

By /s/ Alan E. Wiley
   ___________________________ 
   Alan E. Wiley
   Executive Vice President, Secretary
   Chief Financial and Administrative
   Officer

Date:  April 27, 1995

      Pursuant to the requirements of the Securities Exchange Act
of  1934,  this  report has been signed below  by  the  following
persons on behalf of the Registrant and in the capacities and  on
the date indicated:

                                   
     /s/ Wayland H. Cato, Jr.         /s/ Rober W. Bradshaw, Jr.
     ________________________         ________________________
     Wayland H. Cato, Jr.             Robert W. Bradshaw, Jr.
          (Director)                         (Director)
                                   
        /s/ Edgar T. Cato                 /s/ George S. Currin
        _____________________             ____________________
        Edgar T. Cato                     George S. Currin
          (Director)                         (Director)
                                   
      /s/ Linda McFarland Jenkins              /s/ Paul Fulton  
      _______________________                  _______________
      Linda McFarland Jenkins                  Paul Fulton
          (Director)                         (Director)
                                   
        /s/ John P. Derham Cato              /s/ Grant L. Hamrick
        ____________________                 __________________
        John P. Derham Cato                  Grant L. Hamrick
          (Director)                         (Director)
        
         /s/ Alan E. Wiley                     /s/ Robert L. Kirby
        ___________________                    __________________      
         Alan E. Wiley                         Robert L. Kirby
         (Director)                            (Director)                
                                           
      /s/ Howard A. Severson                  /s/ James H. Shaw 
      ______________________                  ______________                 
      Howard A. Severson                       James H. Shaw
          (Director)                            (Director)

                                              /s/ A.F. (Pete) Sloan 
    _____________________                     __________________
    Clarice Cato Goodyear                     A.F. (Pete) Sloan
          (Director)                           (Director)

        /s/ Thomas E. Cato
        _________________
        Thomas E. Cato
          (Director)