Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Feb. 02, 2019 | Apr. 02, 2019 | Aug. 04, 2018 | |
Document and Entity Information | |||
Entity Registrant Name | Citi Trends Inc | ||
Entity Central Index Key | 0001318484 | ||
Document Type | 10-K | ||
Document Period End Date | Feb. 2, 2019 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --02-02 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 345,865,178 | ||
Entity Common Stock, Shares Outstanding | 12,132,535 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 17,863 | $ 48,451 |
Short-term investment securities | 50,350 | 31,500 |
Inventory | 139,841 | 137,701 |
Prepaid and other current assets | 17,544 | 15,694 |
Total current assets | 225,598 | 233,346 |
Property and equipment, net | 56,224 | 61,777 |
Long-term investment securities | 8,883 | 25,451 |
Deferred tax asset | 6,539 | 5,777 |
Other assets | 745 | 720 |
Total assets | 297,989 | 327,071 |
Current liabilities: | ||
Accounts payable | 73,391 | 75,947 |
Accrued expenses | 15,311 | 13,762 |
Accrued compensation | 12,746 | 17,013 |
Income tax payable | 395 | 1,916 |
Layaway deposits | 526 | 532 |
Total current liabilities | 102,369 | 109,170 |
Other long-term liabilities | 8,195 | 8,433 |
Total liabilities | 110,564 | 117,603 |
Stockholders' equity: | ||
Common stock, $0.01 par value. Authorized 32,000,000 shares; 15,827,713 shares issued as of February 2, 2019 and 15,777,946 shares issued as of February 3, 2018; 12,158,237 shares outstanding as of February 2, 2019 and 13,743,776 shares outstanding as of February 3, 2018 | 157 | 156 |
Paid in capital | 91,794 | 90,605 |
Retained earnings | 176,094 | 158,927 |
Treasury stock, at cost; 3,669,476 shares held as of February 2, 2019 and 2,034,170 shares held as of February 3, 2018 | (80,620) | (40,220) |
Total stockholders' equity | 187,425 | 209,468 |
Total liabilities and stockholders' equity | $ 297,989 | $ 327,071 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Feb. 02, 2019 | Feb. 03, 2018 |
Condensed Consolidated Balance Sheets | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 32,000,000 | 32,000,000 |
Common stock, shares issued | 15,827,713 | 15,777,946 |
Common stock, shares outstanding | 12,158,237 | 13,743,776 |
Treasury stock, shares | 3,669,476 | 2,034,170 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Condensed Consolidated Statements of Income | |||
Net sales | $ 769,553 | $ 755,241 | $ 695,175 |
Cost of sales (exclusive of depreciation shown separately below) | (476,326) | (466,022) | (428,167) |
Selling, general and administrative expenses | (247,938) | (247,062) | (230,666) |
Depreciation | (18,886) | (18,883) | (17,090) |
Asset impairment | (1,274) | (507) | (313) |
Income from operations | 25,129 | 22,767 | 18,939 |
Interest income | 1,353 | 883 | 571 |
Interest expense | (154) | (150) | (159) |
Income before income taxes | 26,328 | 23,500 | 19,351 |
Income tax expense | (4,954) | (8,926) | (6,020) |
Net income | $ 21,374 | $ 14,574 | $ 13,331 |
Basic net income per common share | $ 1.64 | $ 1.04 | $ 0.91 |
Diluted net income per common share | $ 1.64 | $ 1.03 | $ 0.91 |
Weighted average number of shares outstanding | |||
Basic | 13,030,063 | 14,058,008 | 14,656,753 |
Diluted | 13,069,694 | 14,115,895 | 14,662,272 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Operating activities: | |||
Net income | $ 21,374 | $ 14,574 | $ 13,331 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 18,886 | 18,883 | 17,090 |
Asset impairment | 1,274 | 507 | 313 |
Deferred income taxes | (762) | 2,729 | 1,482 |
Loss on disposal of property and equipment | 471 | 130 | 290 |
Insurance proceeds related to operating activities | 475 | 1,349 | 847 |
Noncash stock-based compensation expense | 2,238 | 1,632 | 2,923 |
Excess tax benefits from stock-based payment arrangements | (168) | ||
Changes in assets and liabilities: | |||
Inventory | (2,330) | (3,948) | 1,665 |
Prepaid and other current assets | (2,135) | (2,398) | (1,689) |
Other assets | (25) | 5 | (20) |
Accounts payable | (2,844) | 230 | 8,009 |
Accrued expenses and other long-term liabilities | (418) | (3,093) | 54 |
Accrued compensation | (4,267) | 8,092 | (4,176) |
Income tax payable/receivable | (1,521) | 3,551 | (182) |
Layaway deposits | (6) | 61 | (26) |
Net cash provided by operating activities | 30,410 | 42,304 | 39,743 |
Investing activities: | |||
Purchases of investment securities | (43,882) | (37,654) | (44,882) |
Sales/redemptions of investment securities | 41,600 | 45,420 | 43,726 |
Purchases of property and equipment | (13,256) | (20,986) | (23,932) |
Insurance proceeds related to investing activities | 195 | 443 | 421 |
Net cash used in investing activities | (15,343) | (12,777) | (24,667) |
Financing activities: | |||
Excess tax benefits from stock-based payment arrangements | 168 | ||
Cash used to settle withholding taxes on stock option exercises and the vesting of nonvested restricted stock | (1,048) | (1,062) | (1,594) |
Dividends paid to stockholders | (4,207) | (4,232) | (3,513) |
Repurchase of common stock | (40,400) | (25,035) | |
Net cash used in financing activities | (45,655) | (30,329) | (4,939) |
Net (decrease) increase in cash and cash equivalents | (30,588) | (802) | 10,137 |
Cash and cash equivalents: | |||
Beginning of year | 48,451 | 49,253 | 39,116 |
End of year | 17,863 | 48,451 | 49,253 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 127 | 127 | 127 |
Cash payments of income taxes | 7,237 | 2,646 | 4,720 |
Supplemental disclosures of noncash investing activities: | |||
Accrual for purchases of property and equipment | $ 2,017 | $ 1,474 | $ 2,830 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Paid in Capital | Retained Earnings | Treasury Stock | Total |
Balances at Jan. 30, 2016 | $ 154 | $ 88,540 | $ 138,725 | $ (15,185) | $ 212,234 |
Balances (in shares) at Jan. 30, 2016 | 15,707,859 | 833,188 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Vesting of nonvested shares and restricted stock units | $ 2 | 2 | |||
Excess tax benefits from stock based payment arrangements | 168 | 168 | |||
Issuance of nonvested shares to employees and directors under incentive plan (in shares) | 134,710 | ||||
Forfeiture of nonvested shares by employees and directors (in shares) | (25,018) | ||||
Stock-based compensation expense | 2,923 | 2,923 | |||
Net share settlement of nonvested shares and restricted stock units | $ (1) | (1,595) | (1,596) | ||
Net share settlement of nonvested shares and restricted stock units (in shares) | (85,212) | ||||
Dividends paid to stockholders | (3,471) | (3,471) | |||
Net income | 13,331 | 13,331 | |||
Balances at Jan. 28, 2017 | $ 155 | 90,036 | 148,585 | $ (15,185) | 223,591 |
Balances (in shares) at Jan. 28, 2017 | 15,732,339 | 833,188 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Vesting of nonvested shares and restricted stock units | $ 2 | 2 | |||
Vesting of nonvested shares and restricted stock units (in shares) | 12,982 | ||||
Issuance of nonvested shares to employees and directors under incentive plan (in shares) | 118,676 | ||||
Forfeiture of nonvested shares by employees and directors (in shares) | (31,303) | ||||
Stock-based compensation expense | 1,632 | 1,632 | |||
Net share settlement of nonvested shares and restricted stock units | $ (1) | (1,063) | (1,064) | ||
Net share settlement of nonvested shares and restricted stock units (in shares) | (54,748) | ||||
Repurchase of common stock | $ (25,035) | (25,035) | |||
Repurchase of common stock (in shares) | 1,200,982 | ||||
Dividends paid to stockholders | (4,232) | (4,232) | |||
Net income | 14,574 | 14,574 | |||
Balances at Feb. 03, 2018 | $ 156 | 90,605 | 158,927 | $ (40,220) | $ 209,468 |
Balances (in shares) at Feb. 03, 2018 | 15,777,946 | 2,034,170 | 15,777,946 | ||
Increase (Decrease) in Stockholders' Equity | |||||
Vesting of nonvested shares and restricted stock units | $ 1 | $ 1 | |||
Vesting of nonvested shares and restricted stock units (in shares) | 10,663 | ||||
Issuance of nonvested shares to employees and directors under incentive plan (in shares) | 80,045 | ||||
Stock-based compensation expense | 2,238 | 2,238 | |||
Net share settlement of nonvested shares and restricted stock units | (1,049) | (1,049) | |||
Net share settlement of nonvested shares and restricted stock units (in shares) | (40,941) | ||||
Repurchase of common stock | $ (40,400) | (40,400) | |||
Repurchase of common stock (in shares) | 1,635,306 | ||||
Dividends paid to stockholders | (4,207) | (4,207) | |||
Net income | 21,374 | 21,374 | |||
Balances at Feb. 02, 2019 | $ 157 | $ 91,794 | $ 176,094 | $ (80,620) | $ 187,425 |
Balances (in shares) at Feb. 02, 2019 | 15,827,713 | 3,669,476 | 15,827,713 |
Organization and Business
Organization and Business | 12 Months Ended |
Feb. 02, 2019 | |
Organization and Business | |
Organization and Business | Citi Trends, Inc. Notes to Consolidated Financial Statements February 2, 2019, February 3, 2018 and January 28, 2017 (1) Organization and Business Citi Trends, Inc. and its subsidiary (the “Company”) operate as a value-priced retailer of urban fashion apparel and accessories for the entire family. As of February 2, 2019, the Company operated 562 stores in 32 states. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 02, 2019 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies (a) Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All intercompany transactions and balances have been eliminated in consolidation. (b) Fiscal Year The Company’s fiscal year ends on the Saturday closest to January 31 of each year. The years ended February 2, 2019, February 3, 2018 and January 28, 2017 are referred to as fiscal 2018, fiscal 2017 and fiscal 2016, respectively, in the accompanying consolidated financial statements. Fiscal year 2017 is comprised of 53 weeks, while fiscal years 2018 and 2016 are each comprised of 52 weeks. (c) Cash and Cash Equivalents/Concentration of Credit Risk For purposes of the consolidated balance sheets and consolidated statements of cash flows, the Company considers all highly liquid investments with maturities at date of purchase of three months or less to be cash equivalents. Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash and cash equivalents. The Company places its cash and cash equivalents in what it believes to be high credit quality banks and institutional money market funds. The Company maintains cash accounts that exceed federally insured limits. (d) Inventory Inventory is stated at the lower of cost (first-in, first-out basis) or net realizable value as determined by the retail inventory method for store inventory and the average cost method for distribution center inventory. Under the retail inventory method, the cost of inventory is determined by calculating a cost-to-retail ratio and applying it to the retail value of inventory. Merchandise markdowns are reflected in the inventory valuation when the retail price of an item is lowered in the stores. Inventory is recorded net of an allowance for shrinkage based on the most recent physical inventory counts. (e) Property and Equipment, net Property and equipment, net are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the lesser of the estimated useful lives (primarily three to five years for computer equipment and furniture, fixtures and equipment, five years for leasehold improvements, seven years for major purchased software systems, and fifteen to twenty years for buildings and building improvements) of the related assets or the relevant lease term. (f) Impairment of Long-Lived Assets If facts and circumstances indicate that a long-lived asset may be impaired, the carrying value is reviewed. If this review indicates that the carrying value of the asset will not be recovered as determined based on projected undiscounted cash flows related to the asset over its remaining life, the carrying value of the asset is reduced to its estimated fair value. Non-cash impairment expense related primarily to leasehold improvements and fixtures and equipment at underperforming stores totaled $1.3 million, $0.5 million and $0.3 million in fiscal 2018, 2017 and 2016, respectively. (g) Insurance Liabilities The Company is largely self-insured for workers’ compensation costs and employee medical claims. The Company’s self-insured retention or deductible, as applicable, for each claim involving workers’ compensation and employee medical is limited to $250,000 and $100,000, respectively. Self-insurance liabilities are based on the total estimated costs of claims filed and estimates of claims incurred but not reported, less amounts paid against such claims. Current and historical claims data, together with information from actuarial studies, are used in developing the estimates. The insurance liabilities that are recorded are primarily influenced by the frequency and severity of claims and the Company’s growth. If the underlying facts and circumstances related to the claims change, then the Company may be required to record more or less expense which could be material in relation to results of operations. (h) Stock-Based Compensation The Company recognizes compensation expense associated with all nonvested restricted stock and restricted stock units based on an estimate of the grant-date fair value of each equity award. Grants of time-based nonvested restricted stock are valued based on the closing stock price on the grant date, while grants of performance-based restricted stock units are valued at an estimate of fair market value using a lattice model. See Note 8 for additional information on the Company’s stock-based compensation plans. (i) Revenue Recognition The Company’s primary source of revenue is derived from the sale of clothing and accessories to its customers with the Company’s performance obligations satisfied at the point of sale when the customer pays for their purchase and receives the merchandise. Sales taxes collected by the Company from customers are excluded from revenue. Revenue from layaway sales is recognized at the point in time when the merchandise is paid for and control of the goods is transferred to the customer, thereby satisfying the Company’s performance obligation. Non-refundable layaway service fees are recognized in revenue when collected by the Company from customers. The Company defers revenue from the sale of gift cards and recognizes the associated revenue upon the redemption of the cards by customers to purchase merchandise. Breakage on gift cards is minimal as the cards are generally subject to escheat regulations of the state in which the gift card subsidiary is located. Sales Returns The Company allows customers to return merchandise for up to thirty days after the date of sale. Expected refunds to customers are recorded based on estimated margin using historical return information. Under Accounting Standard Update (“ASU”) 2014-09, the Company recorded an estimated refund liability of $0.3 million, included in the line item “Accrued expenses,” and the carrying value of a return asset of $0.2 million, presented separately from inventory, included in the line item “Prepaid and other current assets” on the consolidated balance sheets. The cumulative effect of the changes made to the February 2, 2019 consolidated balance sheet from the modified retrospective adoption of ASU 2014-09 on retained earnings was immaterial. Disaggregation of Revenue The Company’s retail operations represent a single operating segment based on the way the Company manages its business. Operating decisions and resource allocation decisions are made at the Company level in order to maintain a consistent retail store presentation. The Company’s retail stores sell similar products, use similar processes to sell those products, and sell their products to similar classes of customers. In the following table, the Company’s revenue is disaggregated by major product line. The percentage of net sales related to each classification of its merchandise assortment for fiscal 2018, 2017 and 2016 was as follows: Percentage of Net Sales 2018 2017 2016 Accessories 32 % 32 % 31 % Children’s 23 % 23 % 23 % Ladies’ 22 % 23 % 24 % Men’s 17 % 17 % 17 % Home 6 % 5 % 5 % (j) Cost of Sales Cost of sales includes the cost of inventory sold during the period and transportation costs, including inbound freight related to inventory sold and freight from the distribution centers to the stores, net of discounts and allowances. Distribution center costs, store occupancy expenses and advertising expenses are not considered components of cost of sales and are included as part of selling, general and administrative expenses. Depreciation is also not considered a component of cost of sales and is included as a separate line item in the consolidated statements of operations. Distribution center costs (exclusive of depreciation) for fiscal 2018, 2017 and 2016 were $17.6 million, $17.4 million and $17.2 million, respectively. (k) Earnings per Share Basic earnings per common share amounts are calculated using the weighted average number of common shares outstanding for the period. Diluted earnings per common share amounts are calculated using the weighted average number of common shares outstanding plus the additional dilution for all potentially dilutive securities, such as nonvested restricted stock and stock options. During loss periods, diluted loss per share amounts are based on the weighted average number of common shares outstanding because the inclusion of common stock equivalents would be antidilutive. The following table provides a reconciliation of the number of average common shares outstanding used to calculate basic earnings per share to the number of common shares and common stock equivalents outstanding used in calculating diluted earnings per share for fiscal 2018, 2017 and 2016: 2018 2017 2016 Weighted average number of common shares outstanding 13,030,063 14,058,008 14,656,753 Incremental shares from assumed vesting of nonvested restricted stock 39,631 57,887 5,519 Average number of common shares and common stock equivalents outstanding 13,069,694 14,115,895 14,662,272 The dilutive effect of stock-based compensation arrangements is accounted for using the treasury stock method. This method assumes that the proceeds the Company receives from the exercise of stock options are used to repurchase common shares in the market. Prior to the adoption of ASU No. 2016-09, Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting, in the first quarter of fiscal 2017, the Company included as assumed proceeds the amount of compensation costs attributed to future services and not yet recognized, and the amount of tax benefits, if any, that would be credited to additional paid-in capital assuming exercise of outstanding options and vesting of nonvested restricted stock. Following the adoption of ASU No. 2016-09, the assumed proceeds include only the amount of compensation costs attributed to future services and not yet recognized but does not include any tax benefits arising from the assumed exercise of outstanding options and the vesting of nonvested restricted stock. For fiscal 2018, 2017 and 2016, respectively, there were 0, 0 and 4,000 options outstanding to purchase shares of common stock excluded from the calculation of diluted earnings per share because of antidilution. For fiscal 2018, 2017 and 2016, respectively, there were 124,000, 125,000 and 237,000 shares of nonvested restricted stock, respectively, excluded from the calculation of diluted earnings per share because of antidilution. (l) Advertising The Company expenses advertising as incurred. Advertising expense for fiscal 2018, 2017 and 2016 was $1.7 million, $2.0 million and $2.5 million, respectively. (m) Operating Leases The Company leases all of its store properties and accounts for the leases as operating leases. Many lease agreements contain tenant improvement allowances, rent holidays, rent escalation clauses and/or contingent rent provisions. For purposes of recognizing incentives and minimum rent expense on a straight-line basis over the terms of the leases, the Company uses the date of initial possession to begin amortization, which is generally when the Company enters the space and begins to make improvements in preparation of intended use. For scheduled rent escalation clauses during the lease terms or for rental payments commencing “rent holidays” at a date other than the date of initial occupancy, the Company records minimum rent expense on a straight-line basis over the terms of the leases. Tenant improvement allowances are included in accrued expenses (current portion) and other long-term liabilities (noncurrent portion) and are amortized over the lease term. Changes in the balances of tenant improvement allowances are included as a component of operating activities in the consolidated statements of cash flows. Certain leases provide for contingent rents that are not measurable at inception. These contingent rents are primarily based on a percentage of net sales that are in excess of a predetermined level. These amounts are excluded from minimum rent and are included in the determination of total rent expense when it is probable that the expense has been incurred and the amount is reasonably estimable. The Company is required to recognize a liability for the fair value of a conditional asset retirement obligation when incurred if the liability’s fair value can be reasonably estimated. The Company included a liability of $0.8 million as of both February 2, 2019 and February 3, 2018 in other long-term liabilities, representing estimated expenses that would be incurred upon the termination of the Company’s operating leases . (n) Store Opening and Closing Costs New and relocated store opening period costs are charged directly to expense when incurred. When the Company decides to close or relocate a store, the Company records an expense for the present value of expected future rent payments, net of sublease income, if any, in the period that a store closes or relocates. All store opening and closing costs are included in selling, general and administrative expenses. (o) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. (p) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and use assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates made by management include those used in the valuation of inventory, property and equipment, self-insurance liabilities, leases and income taxes. Management periodically evaluates estimates used in the preparation of the consolidated financial statements for continued reasonableness. Appropriate adjustments, if any, to the estimates used are made prospectively based on such periodic evaluations. (q) Business Reporting Segments The Company is a value-priced retailer of urban fashion apparel and accessories for the entire family. The retail operations represent a single operating segment based on the way the Company manages its business. Operating decisions and resource allocation decisions are made at the Company level in order to maintain a consistent retail store presentation. The Company’s retail stores sell similar products, use similar processes to sell those products, and sell their products to similar classes of customers. All sales and assets are located within the United States. (r) Recent Accounting Pronouncements Recently Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The guidance requires an entity to recognize revenue on contracts with customers relating to the transfer of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this, an entity is required to identify the contract with a customer; identify the separate performance obligations in the contract; determine the transaction price; allocate the transaction price to the separate performance obligations in the contract; and recognize revenue when (or as) the entity satisfies each performance obligation. In August of 2015, the FASB issued ASU 2015-14 which defers the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2017 and interim periods in the year of adoption. The Company adopted ASU 2014-09 in fiscal 2018 beginning February 4, 2018 using the modified retrospective approach. The Company’s primary source of revenue is derived from the sale of clothing and accessories to its customers with the Company’s performance obligations satisfied immediately when the customer pays for their purchase and receives the merchandise. As such, adoption of the new standard did not have a material impact on the Company’s consolidated balance sheet, results of operations or cash flows. Additionally, the adoption of the ASU did not result in significant changes to the Company’s business processes, controls, systems. Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) which amends the existing guidance in ASC Topic 840, Leases. Additional amendments to the standard were issued subsequent to the initial release. The new standard requires lessees to recognize a right-of-use (“ROU”) asset and a lease liability on the balance sheet for leases with such obligations representing the discounted value of future lease payments. The Company will adopt the requirements of the new lease standard effective February 3, 2019, the first day of fiscal 2019. As part of the implementation process, the Company has assessed its lease arrangements and evaluated practical expedient and accounting policy elections. The Company is finalizing its evaluation of processes and controls, and has implemented necessary modifications to its existing lease system. In adopting the new lease standard, the Company will elect the optional transition method which will apply the standard as of the effective date, but will not apply the standard to the comparative periods previously presented in its consolidated financial statements. At the adoption date, the Company expects to recognize a cumulative effect adjustment to retained earnings as a result of the impairment of certain ROU assets. The new standard provides optional practical expedients in transition. The Company is electing the transition package of practical expedients allowed by the standard which permits it to not reassess prior conclusions regarding lease classification, identification and initial direct costs. Further, the Company is electing a short-term lease exception policy which permits it to not apply the recognition requirements of this standard to short-term leases (leases with terms of 12 months or less), as well as an accounting policy to account for lease and non-lease components as a single component for certain classes of assets. The Company is not electing the hindsight practical expedient. The adoption of ASU 2016-02 will have a material impact on the Company's consolidated balance sheet due to the recognition of ROU assets and lease liabilities related to operating leases. The Company expects to record operating lease liabilities totaling approximately $130 million to $150 million based on the present value of the remaining minimum rental payments using a discount rate as of the date of adoption. The Company also expects to record corresponding ROU assets based on the operating lease liabilities as adjusted for prepaid and deferred rent, unamortized lease incentives and other transition adjustments. These estimates may differ from the actual amounts recorded upon adoption in fiscal 2019 as they are based on transition procedures completed to date. The Company does not expect a material impact to its consolidated statement of operations or consolidated statement of cash flows. |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Feb. 02, 2019 | |
Property and Equipment, net | |
Property and Equipment, net | (3) Property and Equipment, net The components of property and equipment as of February 2, 2019 and February 3, 2018 are as follows (in thousands): February 2, February 3, 2019 2018 Land $ 479 $ 479 Buildings 30,779 30,540 Leasehold improvements 97,825 93,653 Furniture, fixtures and equipment 132,067 127,816 Computer equipment 38,039 37,115 Construction in progress 2,993 1,873 302,182 291,476 Accumulated depreciation (245,958) (229,699) $ 56,224 $ 61,777 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Feb. 02, 2019 | |
Fair Value Measurements | |
Fair Value Measurements | (4) Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal or most advantageous market at the measurement date. Fair value is established according to a hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. Level 3 inputs are given the lowest priority in the fair value hierarchy. As of February 2, 2019, the Company’s investment securities are classified as held-to-maturity since the Company has the intent and ability to hold the investments to maturity. Such securities are carried at amortized cost plus accrued interest and consist of the following (in thousands): Gross Gross Amortized Unrealized Unrealized Fair Market Cost Gains Losses Value Short-term: Obligations of the U.S. Treasury and U.S. government agencies (Level 1) $ 38,706 $ 4 $ (37) $ 38,673 Obligations of states and municipalities (Level 2) 95 — — 95 Bank certificates of deposit (Level 2) 11,549 — — 11,549 $ 50,350 $ 4 $ (37) $ 50,317 Long-term: Obligations of the U.S. Treasury (Level 1) $ 4,956 $ — $ (16) $ 4,940 Bank certificates of deposit (Level 2) 3,927 — — 3,927 $ 8,883 $ — $ (16) $ 8,867 The amortized cost and fair market value of investment securities as of February 2, 2019 by contractual maturity are as follows (in thousands): Fair Amortized Market Cost Value Mature in one year or less $ 50,350 $ 50,317 Mature after one year through five years 8,883 8,867 $ 59,233 $ 59,184 As of February 3, 2018, the Company’s investment securities were classified as held-to-maturity and consisted of the following (in thousands): Gross Gross Amortized Unrealized Unrealized Fair Market Cost Gains Losses Value Short-term: Obligations of the U.S. Treasury and U.S. government agencies (Level 1) $ 10,162 $ — $ (25) $ 10,137 Obligations of states and municipalities (Level 2) 8,111 1 (2) 8,110 Bank certificates of deposit (Level 2) 13,227 — - 13,227 $ 31,500 $ 1 $ (27) $ 31,474 Long-term: Obligations of the U.S. Treasury (Level 1) $ 9,967 $ — $ (116) $ 9,851 Bank certificates of deposit (Level 2) 15,484 — - 15,484 $ 25,451 $ — $ (116) $ 25,335 The amortized cost and fair market value of investment securities as of February 3, 2018 by contractual maturity were as follows (in thousands): Fair Amortized Market Cost Value Mature in one year or less $ 31,500 $ 31,474 Mature after one year through five years 25,451 25,335 $ 56,951 $ 56,809 There were no changes among the levels in the three fiscal years ended February 2, 2019. Fair market values of Level 2 investments are determined by management with the assistance of a third party pricing service. Since quoted prices in active markets for identical assets are not available, these prices are determined by the third party pricing service using observable market information such as quotes from less active markets and quoted prices of similar securities. |
Revolving Line of Credit
Revolving Line of Credit | 12 Months Ended |
Feb. 02, 2019 | |
Revolving Line of Credit | |
Revolving Line of Credit | (5) Revolving Line of Credit On October 27, 2011, the Company entered into a five-year, $50 million credit facility with Bank of America. The facility was amended on August 18, 2015, extending the maturity date to August 18, 2020. The amended facility provides a $50 million credit commitment and a $25 million uncommitted “accordion” feature that under certain circumstances could allow the Company to increase the size of the facility to $75 million. Borrowings, if any, under the facility will bear interest (a) for LIBOR Rate Loans, at LIBOR plus either 1.25% or 1.5%, or (b) for Base Rate Loans, at a rate equal to the highest of (i) the prime rate plus either 0.25% or 0.5%, (ii) the Federal Funds Rate plus either 0.75% or 1.0%, or (iii) LIBOR plus either 1.25% or 1.5%, based in any such case on the average daily availability for borrowings under the facility. The facility continues to be secured by the Company’s inventory, accounts receivable and related assets, but not its real estate, fixtures and equipment, and it contains one financial covenant, a fixed charge coverage ratio, which is applicable and tested only in certain circumstances. The facility has an unused commitment fee of 0.25% and permits the payment of cash dividends subject to certain limitations, including a requirement that there were no borrowings outstanding in the 30 days prior to the dividend payment and no borrowings are expected in the 30 days subsequent to the payment. The Company has had no borrowings under the credit facility. |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 02, 2019 | |
Income Taxes | |
Income Taxes | (6) Income Taxes Income tax expense for fiscal 2018, 2017 and 2016 consists of the following (in thousands): 2018 2017 2016 Current: Federal $ (4,326) $ (5,249) $ (3,759) State (1,390) (948) (779) Total current (5,716) (6,197) (4,538) Deferred: Federal 619 (3,078) (1,541) State 143 349 59 Total deferred 762 (2,729) (1,482) Total income tax expense $ (4,954) $ (8,926) $ (6,020) Income tax expense computed using the federal statutory rate is reconciled to the reported income tax expense as follows for fiscal 2018, 2017 and 2016 (in thousands): 2018 2017 2016 Statutory rate applied to income before income taxes $ (5,529) $ (7,924) $ (6,773) Revaluation of net deferred tax assets due to the Tax Cuts and Jobs Act — (1,925) — State income taxes, net of federal benefit (1,250) (549) (903) State tax credits 276 252 226 State tax credits - valuation allowance (net of federal benefit) 10 (79) — Tax exempt interest 16 24 20 General business credits 1,409 1,273 1,605 Excess tax benefits from stock based compensation 140 70 — Other (26) (68) (195) Income tax expense $ (4,954) $ (8,926) $ (6,020) The components of deferred tax assets and deferred tax liabilities as of February 2, 2019 and February 3, 2018 are as follows (in thousands): February 2, February 3, 2019 2018 Deferred tax assets: Deferred rent amortization $ 652 $ 558 Inventory capitalization 1,953 1,863 Book and tax depreciation differences 853 312 Vacation liability 653 585 State tax credits 2,863 2,676 Stock compensation 843 834 Legal expense reserve 178 73 Insurance liabilities 319 537 Other 412 342 Subtotal deferred tax assets 8,726 7,780 Less: State tax credits valuation allowance - net (1,615) (1,624) Total deferred tax assets 7,111 6,156 Deferred tax liabilities: Prepaid expenses (572) (379) Total deferred tax liabilities (572) (379) Net deferred tax asset $ 6,539 $ 5,777 The Company files income tax returns in U.S. federal and state jurisdictions where it does business and is subject to examinations by the Internal Revenue Service (“IRS”) and other taxing authorities. With a few exceptions, the Company is no longer subject to U.S. federal and state income tax examinations by tax authorities for years prior to fiscal 2013. The Company reviews and assesses uncertain tax positions, if any, with recognition and measurement of tax benefit based on a “more-likely-than-not” standard with respect to the ultimate outcome, regardless of whether this assessment is favorable or unfavorable. As of February 2, 2019, there were no benefits taken on the Company’s income tax returns that do not qualify for financial statement recognition. If a tax position does not meet the minimum statutory threshold to avoid payment of penalties and interest, a company is required to recognize an expense for the amount of the interest and penalty in the period in which the company claims or expects to claim the position on its tax return. For financial statement purposes, companies are allowed to elect whether to classify such charges as either income tax expense or another expense classification. Should such expense be incurred in the future, the Company will classify such interest as a component of interest expense and penalties as a component of income tax expense. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible and income tax credits may be utilized, management believes it is more likely than not that the Company will realize the benefits of these deductible differences with the exception of certain tax credits available in one state. Beginning in 2011, the Company concluded that its ability to utilize a portion of such state’s tax credits was no longer more likely than not. Such recognition resulted in the establishment of a valuation allowance which necessitated a charge to income tax expense and a reduction in deferred tax assets. Subsequent to 2011, the Company has continued to earn such state credits and has further adjusted the related valuation allowance. At February 2, 2019, the valuation allowance, net of federal tax benefit, totaled $1.6 million. The effective income tax rate for fiscal 2018, 2017 and 2016 included the recognition of benefits arising from various federal and state tax credits. Under current IRS and state income tax regulations, these credits may be carried back for one year or carried forward for periods up to 20 years. The income tax benefit included $1.7 million related to such credits in fiscal 2018, $1.3 million related to such credits in fiscal 2017 and $1.8 million related to such credits in fiscal 2016. On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act tax reform legislation. The legislation was effective January 1, 2018 and made significant changes to U.S. tax law including a reduction in the corporate income tax rate, changes to net operating loss carryforwards and carrybacks, and a repeal of the corporate alternative minimum tax. The legislation reduced the federal statutory tax rate from 35% to 21% and required corporations with fiscal years spanning periods before and after the effective date to use a blended federal tax rate for fiscal years which include January 1, 2018. As a result of the provision requiring a blended rate, the Company’s federal statutory rate was reduced from 35% to 33.7% with a commensurate reduction in income tax expense of $0.3 million for fiscal 2017. In addition, the Company was required to revalue its deferred tax assets and liabilities to reflect the reduced federal income tax rate expected to be in effect at the time of future reversals. Such revaluation resulted in the reduction of net deferred tax assets and a charge to income tax expense in the fourth quarter of 2017 of $1.9 million. The other provisions of the Tax Cuts and Jobs Act did not have a material impact on the fiscal 2017 consolidated financial statements. In 2018, the Company’s effective income tax rate was significantly lower than previous years due to the reduction in the federal statutory tax rate. |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Feb. 02, 2019 | |
Other Long-Term Liabilities | |
Other Long-Term Liabilities | (7) Other Long-Term Liabilities The components of other long-term liabilities as of February 2, 2019 and February 3, 2018 are as follows (in thousands): February 2, February 3, 2019 2018 Deferred rent $ 2,344 $ 2,148 Tenant improvement allowances 4,037 4,325 Other 1,814 1,960 $ 8,195 $ 8,433 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Feb. 02, 2019 | |
Stockholders' Equity | |
Stockholders' Equity | (8) Stockholders’ Equity Repurchases of common stock In March 2018, the Company’s Board of Directors approved a program that authorized the repurchase of up to $25.0 million in shares of the Company’s common stock. During the first three quarters of fiscal 2018, the Company repurchased 866,748 shares of its common stock in the open market at an aggregate cost of $25.0 million. In November 2018, the Company’s Board of Directors approved a new program that authorized the purchase of up to $25.0 million in shares of the Company’s common stock. During the thirteen weeks ended February 2, 2019, the Company repurchased 768,558 shares of its common stock in the open market at an aggregate cost of $15.4 million. At February 2, 2019, $9.6 million of shares remained available for purchase under this program. Dividends In fiscal 2018, the Company paid four quarterly dividends of $0.08 per common share on March 20, 2018, June 19, 2018, September 18, 2018 and December 26, 2018. On February 12, 2019, the Company’s Board of Directors declared a dividend of $0.08 per common share, which was paid on March 19, 2019 to stockholders of record as of March 5, 2019. Any determination to declare and pay cash dividends for future quarters will be made by the Board of Directors. Stock-Based Compensation On April 6, 2012, the Company adopted the Citi Trends, Inc. 2012 Incentive Plan (the “2012 Plan”), which became effective upon approval by the Company’s stockholders on May 23, 2012. The 2012 Plan is a successor plan to the 2005 Citi Trends, Inc. Long-Term Incentive Plan (the “2005 Plan”), which became effective upon the consummation of the Company’s initial public offering in May 2005. The 2005 Plan provided for the grant of incentive and nonqualified options, nonvested restricted stock and other forms of stock-based compensation to key employees and directors. The 2012 Plan provides for the grant of incentive and nonqualified options, nonvested restricted stock and other forms of stock-based and cash-based compensation to key employees and directors. Shares of time-based nonvested restricted stock granted to employees vest in equal installments over three years from the date of grant. Shares issued to directors vest one year from the date of grant. The Company records compensation expense for grants of time-based nonvested restricted stock on a straight line basis over the requisite service period of the stock recipients which is equal to the vesting period of the stock. Total compensation cost for such stock is calculated based on the closing market price on the date of grant multiplied by the number of shares granted. The Company expects to recognize $2.2 million in future compensation expense from the grants of time-based restricted stock over the requisite service period of up to three years. Compensation costs for grants of performance-based restricted stock units (“RSUs”) are recorded in full on the date of grant using a lattice model to estimate fair market value. During fiscal 2018, 2017 and 2016, compensation expense arising from time-based nonvested restricted stock grants and performance-based RSUs totaled $2.2 million, $1.6 million and $2.9 million, respectively. A summary of activity related to time-based nonvested restricted stock grants during fiscal 2018 is as follows: Nonvested Weighted Average Restricted Grant Date Shares Fair Value Outstanding as of February 3, 2018 173,208 $ 19.02 Granted 80,045 30.03 Vested (90,033) 19.55 Forfeited — — Outstanding as of February 2, 2019 163,220 $ 24.09 In March 2018, the Company granted 8,400 RSUs to one employee. The RSUs had performance vesting criteria which were based upon the closing price of the Company’s stock achieving certain thresholds. The shares vest one-third upon achieving an average closing stock price for a 20 consecutive day period of $30.44; $35.01; and $40.26, respectively. The awards expire three years from the date of grant. On the date of grant, the Company expensed $137,000 which was the estimated fair market value. One of these thresholds was achieved in 2018. In March 2018, the Company granted 8,401 RSUs to one employee. The RSUs had performance vesting criteria which were based upon the Company achieving certain thresholds of adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”). The shares vest one-third upon achieving trailing 12-month adjusted EBITDA levels of $51.4 million, $59.1 million, and $67.9, respectively. The awards expire three years from the date of grant. During 2018, the Company expensed $78,000 which was the estimated fair market value. None of these thresholds were achieved in 2018. In March 2017, the Company granted 23,551 RSUs to two employees. The RSUs had performance vesting criteria which were based upon the closing price of the Company’s stock achieving certain thresholds. The shares vest one-fourth upon achieving a closing stock price for a 20 consecutive day period of $19.10; $21.70; $24.30; and $26.90, respectively. The awards expire three years from the date of grant. On the date of grant, the Company expensed $306,000 which was the estimated fair market value. One of the two employees resigned after the date of grant and forfeited his shares. Three of these thresholds were achieved in 2017 and the final threshold was achieved in 2018. In March 2016, the Company granted 24,816 RSUs to two employees. The RSUs had performance vesting criteria which were based upon the closing price of the Company’s stock achieving certain thresholds. The shares vest one-fourth upon achieving a closing stock price for a 20 consecutive day period of $20.75; $23.50; $26.25; and $29.00, respectively. The awards expire three years from the date of grant. On the date of grant, the Company expensed $238,000 which was the estimated fair market value. Two of these thresholds were achieved in 2017 and the other two thresholds were achieved in 2018. Income tax benefits or deficiencies arising from the fair market value of restricted stock shares at vesting versus the cumulative compensation cost of such shares are recorded as a component of income tax expense in the Company’s consolidated statement of operations. Such income tax benefits totaled $140,000 in fiscal 2018 and $70,000 in fiscal 2017. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 02, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | (9) Commitments and Contingencies The Company leases its stores under operating leases, which generally have an initial term of five years with renewal options. Future minimum rent payments under operating leases having noncancellable lease terms as of February 2, 2019 are as follows (in thousands): Fiscal Year: 2019 $ 47,289 2020 39,294 2021 28,228 2022 16,880 2023 9,440 Thereafter 7,836 Total future minimum lease payments $ 148,967 Certain operating leases provide for fixed monthly rents, while others provide for contingent rents computed as a percentage of net sales and others provide for a combination of both fixed monthly rents and contingent rents computed as a percentage of net sales. Rent expense was $55.3 million, $53.0 million and $50.7 million in fiscal 2018, 2017 and 2016 (including $0.5 million, $0.5 million and $0.4 million of contingent rent), respectively. The Company from time to time is involved in various legal proceedings incidental to the conduct of its business, including claims by customers, employees or former employees. Once it becomes probable that the Company will incur costs in connection with a legal proceeding and such costs can be reasonably estimated, it establishes appropriate reserves. While legal proceedings are subject to uncertainties and the outcome of any such matter is not predictable, the Company is not aware of any legal proceedings pending or threatened against it that it expects to have a material adverse effect on its financial condition, results of operations or liquidity. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Feb. 02, 2019 | |
Valuation and Qualifying Accounts | |
Valuation and Qualifying Accounts | (10) Valuation and Qualifying Accounts The following table summarizes the allowances for inventory shrinkage and deferred tax assets (in thousands): Allowance for Allowance for Inventory Deferred Tax Shrinkage Assets Balance as of January 30, 2016 $ 2,584 $ 1,272 Additions charged to costs and expenses 9,351 — Deductions (8,836) — Balance as of January 28, 2017 3,099 1,272 Additions charged to costs and expenses 11,103 79 Impact of tax reform — 273 Deductions (10,698) — Balance as of February 3, 2018 3,504 1,624 Additions charged to costs and expenses 9,643 — Deductions (10,033) (9) Balance as of February 2, 2019 $ 3,114 $ 1,615 For the allowance for inventory shrinkage, additions charged to costs and expenses are the result of estimated inventory shrinkage, while deductions represent actual inventory shrinkage incurred from physical inventories taken during the fiscal year. For the deferred tax asset valuation allowance, additions charged to costs and expenses represent the establishment of a valuation allowance when management determines that its ability to utilize certain tax credits included in deferred tax assets is no longer more likely than not. In fiscal 2017, the Company revalued its deferred tax assets and liabilities to reflect the reduced federal income tax rate expected to be in effect at the time of future reversals including the future utilization of tax credits. Such reduction was the result of the Tax Cuts and Jobs Act tax reform legislation enacted in December 2017 which reduced the federal statutory rate from 35% to 21%. The revaluation necessitated an increase in the valuation allowance related to the future realization of state income tax credits due to the reduction of the associated federal income tax benefit. |
Unaudited Quarterly Results of
Unaudited Quarterly Results of Operations | 12 Months Ended |
Feb. 02, 2019 | |
Unaudited Quarterly Results of Operations | |
Unaudited Quarterly Results of Operations | (11) Unaudited Quarterly Results of Operations Quarter Ended Feb. 2 Nov. 3 Aug. 4 May 5 Feb. 3 Oct. 28 Jul. 29 Apr. 29 2019 2018 2018 2018 2018 (1) 2017 2017 2017 (in thousands, except per share and share amounts) Statement of Operations Data: Net sales $ 201,158 $ 175,364 $ 181,999 $ 211,032 $ 212,143 $ 176,943 $ 166,200 $ 199,955 Cost of sales (exclusive of depreciation shown separately below) (126,095) (110,420) (110,398) (129,413) (131,363) (110,094) (102,175) (122,390) Selling, general and administrative expenses (61,459) (61,189) (62,285) (63,005) (65,623) (61,118) (59,834) (60,487) Depreciation (4,636) (4,600) (4,676) (4,974) (5,020) (4,976) (4,589) (4,298) Asset impairment (152) (180) (942) — (430) — (77) — Income (loss) from operations 8,816 (1,025) 3,698 13,640 9,707 755 (475) 12,780 Interest, net 334 282 325 258 228 178 178 149 Income (loss) before income taxes 9,150 (743) 4,023 13,898 9,935 933 (297) 12,929 Income tax (expense) benefit (1,802) 237 (788) (2,601) (4,688) (286) 87 (4,039) Net income (loss) $ 7,348 $ (506) $ 3,235 $ 11,297 $ 5,247 $ 647 $ (210) $ 8,890 Net income (loss) per common share: (2) Basic $ 0.59 $ $ 0.24 $ 0.83 $ 0.39 $ 0.05 $ $ 0.60 Diluted $ 0.59 $ $ 0.24 $ 0.83 $ 0.38 $ 0.05 $ $ 0.60 Weighted average shares used to compute net income (loss) per common share: Basic 12,447,209 12,780,472 13,314,470 13,578,100 13,567,870 13,563,295 14,381,738 14,719,130 Diluted 12,470,560 12,780,472 13,351,321 13,631,266 13,652,330 13,614,404 14,381,738 14,779,930 (1) (2) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Feb. 02, 2019 | |
Subsequent Events | |
Subsequent Events | (12) On April 11, 2019, the Company entered into a Settlement Agreement with Macellum SPV III, LP, Macellum Management, LP, Macellum Advisors GP, LLC, and Jonathan Duskin, a member of our board of directors (collectively, “Macellum”), to settle the Company’s election contest with such persons in connection with the Company’s 2019 annual meeting of stockholders. Pursuant to the Settlement Agreement, the Company agreed to reimburse Macellum for certain documented out-of-pocket costs, fees and expenses incurred and paid in connection with proxy solicitation activities in an amount not to exceed $500,000. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 02, 2019 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation | (a) Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All intercompany transactions and balances have been eliminated in consolidation. |
Fiscal Year | (b) Fiscal Year The Company’s fiscal year ends on the Saturday closest to January 31 of each year. The years ended February 2, 2019, February 3, 2018 and January 28, 2017 are referred to as fiscal 2018, fiscal 2017 and fiscal 2016, respectively, in the accompanying consolidated financial statements. Fiscal year 2017 is comprised of 53 weeks, while fiscal years 2018 and 2016 are each comprised of 52 weeks. |
Cash and Cash Equivalents/Concentration of Credit Risk | (c) Cash and Cash Equivalents/Concentration of Credit Risk For purposes of the consolidated balance sheets and consolidated statements of cash flows, the Company considers all highly liquid investments with maturities at date of purchase of three months or less to be cash equivalents. Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash and cash equivalents. The Company places its cash and cash equivalents in what it believes to be high credit quality banks and institutional money market funds. The Company maintains cash accounts that exceed federally insured limits. |
Inventory | (d) Inventory Inventory is stated at the lower of cost (first-in, first-out basis) or net realizable value as determined by the retail inventory method for store inventory and the average cost method for distribution center inventory. Under the retail inventory method, the cost of inventory is determined by calculating a cost-to-retail ratio and applying it to the retail value of inventory. Merchandise markdowns are reflected in the inventory valuation when the retail price of an item is lowered in the stores. Inventory is recorded net of an allowance for shrinkage based on the most recent physical inventory counts. |
Property and Equipment, net | (e) Property and Equipment, net Property and equipment, net are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the lesser of the estimated useful lives (primarily three to five years for computer equipment and furniture, fixtures and equipment, five years for leasehold improvements, seven years for major purchased software systems, and fifteen to twenty years for buildings and building improvements) of the related assets or the relevant lease term. |
Impairment of Long-Lived Assets | (f) Impairment of Long-Lived Assets If facts and circumstances indicate that a long-lived asset may be impaired, the carrying value is reviewed. If this review indicates that the carrying value of the asset will not be recovered as determined based on projected undiscounted cash flows related to the asset over its remaining life, the carrying value of the asset is reduced to its estimated fair value. Non-cash impairment expense related primarily to leasehold improvements and fixtures and equipment at underperforming stores totaled $1.3 million, $0.5 million and $0.3 million in fiscal 2018, 2017 and 2016, respectively. |
Insurance Liabilities | (g) Insurance Liabilities The Company is largely self-insured for workers’ compensation costs and employee medical claims. The Company’s self-insured retention or deductible, as applicable, for each claim involving workers’ compensation and employee medical is limited to $250,000 and $100,000, respectively. Self-insurance liabilities are based on the total estimated costs of claims filed and estimates of claims incurred but not reported, less amounts paid against such claims. Current and historical claims data, together with information from actuarial studies, are used in developing the estimates. The insurance liabilities that are recorded are primarily influenced by the frequency and severity of claims and the Company’s growth. If the underlying facts and circumstances related to the claims change, then the Company may be required to record more or less expense which could be material in relation to results of operations. |
Stock-Based Compensation | (h) Stock-Based Compensation The Company recognizes compensation expense associated with all nonvested restricted stock and restricted stock units based on an estimate of the grant-date fair value of each equity award. Grants of time-based nonvested restricted stock are valued based on the closing stock price on the grant date, while grants of performance-based restricted stock units are valued at an estimate of fair market value using a lattice model. See Note 8 for additional information on the Company’s stock-based compensation plans. |
Revenue Recognition | (i) Revenue Recognition The Company’s primary source of revenue is derived from the sale of clothing and accessories to its customers with the Company’s performance obligations satisfied at the point of sale when the customer pays for their purchase and receives the merchandise. Sales taxes collected by the Company from customers are excluded from revenue. Revenue from layaway sales is recognized at the point in time when the merchandise is paid for and control of the goods is transferred to the customer, thereby satisfying the Company’s performance obligation. Non-refundable layaway service fees are recognized in revenue when collected by the Company from customers. The Company defers revenue from the sale of gift cards and recognizes the associated revenue upon the redemption of the cards by customers to purchase merchandise. Breakage on gift cards is minimal as the cards are generally subject to escheat regulations of the state in which the gift card subsidiary is located. |
Sales Returns | Sales Returns The Company allows customers to return merchandise for up to thirty days after the date of sale. Expected refunds to customers are recorded based on estimated margin using historical return information. Under Accounting Standard Update (“ASU”) 2014-09, the Company recorded an estimated refund liability of $0.3 million, included in the line item “Accrued expenses,” and the carrying value of a return asset of $0.2 million, presented separately from inventory, included in the line item “Prepaid and other current assets” on the consolidated balance sheets. The cumulative effect of the changes made to the February 2, 2019 consolidated balance sheet from the modified retrospective adoption of ASU 2014-09 on retained earnings was immaterial. |
Disaggregation of Revenue | Disaggregation of Revenue The Company’s retail operations represent a single operating segment based on the way the Company manages its business. Operating decisions and resource allocation decisions are made at the Company level in order to maintain a consistent retail store presentation. The Company’s retail stores sell similar products, use similar processes to sell those products, and sell their products to similar classes of customers. In the following table, the Company’s revenue is disaggregated by major product line. The percentage of net sales related to each classification of its merchandise assortment for fiscal 2018, 2017 and 2016 was as follows: Percentage of Net Sales 2018 2017 2016 Accessories 32 % 32 % 31 % Children’s 23 % 23 % 23 % Ladies’ 22 % 23 % 24 % Men’s 17 % 17 % 17 % Home 6 % 5 % 5 % |
Cost of Sales | (j) Cost of Sales Cost of sales includes the cost of inventory sold during the period and transportation costs, including inbound freight related to inventory sold and freight from the distribution centers to the stores, net of discounts and allowances. Distribution center costs, store occupancy expenses and advertising expenses are not considered components of cost of sales and are included as part of selling, general and administrative expenses. Depreciation is also not considered a component of cost of sales and is included as a separate line item in the consolidated statements of operations. Distribution center costs (exclusive of depreciation) for fiscal 2018, 2017 and 2016 were $17.6 million, $17.4 million and $17.2 million, respectively. |
Earnings per Share | (k) Earnings per Share Basic earnings per common share amounts are calculated using the weighted average number of common shares outstanding for the period. Diluted earnings per common share amounts are calculated using the weighted average number of common shares outstanding plus the additional dilution for all potentially dilutive securities, such as nonvested restricted stock and stock options. During loss periods, diluted loss per share amounts are based on the weighted average number of common shares outstanding because the inclusion of common stock equivalents would be antidilutive. The following table provides a reconciliation of the number of average common shares outstanding used to calculate basic earnings per share to the number of common shares and common stock equivalents outstanding used in calculating diluted earnings per share for fiscal 2018, 2017 and 2016: 2018 2017 2016 Weighted average number of common shares outstanding 13,030,063 14,058,008 14,656,753 Incremental shares from assumed vesting of nonvested restricted stock 39,631 57,887 5,519 Average number of common shares and common stock equivalents outstanding 13,069,694 14,115,895 14,662,272 The dilutive effect of stock-based compensation arrangements is accounted for using the treasury stock method. This method assumes that the proceeds the Company receives from the exercise of stock options are used to repurchase common shares in the market. Prior to the adoption of ASU No. 2016-09, Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting, in the first quarter of fiscal 2017, the Company included as assumed proceeds the amount of compensation costs attributed to future services and not yet recognized, and the amount of tax benefits, if any, that would be credited to additional paid-in capital assuming exercise of outstanding options and vesting of nonvested restricted stock. Following the adoption of ASU No. 2016-09, the assumed proceeds include only the amount of compensation costs attributed to future services and not yet recognized but does not include any tax benefits arising from the assumed exercise of outstanding options and the vesting of nonvested restricted stock. For fiscal 2018, 2017 and 2016, respectively, there were 0, 0 and 4,000 options outstanding to purchase shares of common stock excluded from the calculation of diluted earnings per share because of antidilution. For fiscal 2018, 2017 and 2016, respectively, there were 124,000, 125,000 and 237,000 shares of nonvested restricted stock, respectively, excluded from the calculation of diluted earnings per share because of antidilution. |
Advertising | (l) Advertising The Company expenses advertising as incurred. Advertising expense for fiscal 2018, 2017 and 2016 was $1.7 million, $2.0 million and $2.5 million, respectively. |
Operating Leases | (m) Operating Leases The Company leases all of its store properties and accounts for the leases as operating leases. Many lease agreements contain tenant improvement allowances, rent holidays, rent escalation clauses and/or contingent rent provisions. For purposes of recognizing incentives and minimum rent expense on a straight-line basis over the terms of the leases, the Company uses the date of initial possession to begin amortization, which is generally when the Company enters the space and begins to make improvements in preparation of intended use. For scheduled rent escalation clauses during the lease terms or for rental payments commencing “rent holidays” at a date other than the date of initial occupancy, the Company records minimum rent expense on a straight-line basis over the terms of the leases. Tenant improvement allowances are included in accrued expenses (current portion) and other long-term liabilities (noncurrent portion) and are amortized over the lease term. Changes in the balances of tenant improvement allowances are included as a component of operating activities in the consolidated statements of cash flows. Certain leases provide for contingent rents that are not measurable at inception. These contingent rents are primarily based on a percentage of net sales that are in excess of a predetermined level. These amounts are excluded from minimum rent and are included in the determination of total rent expense when it is probable that the expense has been incurred and the amount is reasonably estimable. The Company is required to recognize a liability for the fair value of a conditional asset retirement obligation when incurred if the liability’s fair value can be reasonably estimated. The Company included a liability of $0.8 million as of both February 2, 2019 and February 3, 2018 in other long-term liabilities, representing estimated expenses that would be incurred upon the termination of the Company’s operating leases . |
Store Opening and Closing Costs | (n) Store Opening and Closing Costs New and relocated store opening period costs are charged directly to expense when incurred. When the Company decides to close or relocate a store, the Company records an expense for the present value of expected future rent payments, net of sublease income, if any, in the period that a store closes or relocates. All store opening and closing costs are included in selling, general and administrative expenses. |
Income Taxes | (o) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. |
Use of Estimates | (p) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and use assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates made by management include those used in the valuation of inventory, property and equipment, self-insurance liabilities, leases and income taxes. Management periodically evaluates estimates used in the preparation of the consolidated financial statements for continued reasonableness. Appropriate adjustments, if any, to the estimates used are made prospectively based on such periodic evaluations. |
Business Reporting Segments | (q) Business Reporting Segments The Company is a value-priced retailer of urban fashion apparel and accessories for the entire family. The retail operations represent a single operating segment based on the way the Company manages its business. Operating decisions and resource allocation decisions are made at the Company level in order to maintain a consistent retail store presentation. The Company’s retail stores sell similar products, use similar processes to sell those products, and sell their products to similar classes of customers. All sales and assets are located within the United States. |
Recent Accounting Pronouncements | (r) Recent Accounting Pronouncements Recently Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The guidance requires an entity to recognize revenue on contracts with customers relating to the transfer of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this, an entity is required to identify the contract with a customer; identify the separate performance obligations in the contract; determine the transaction price; allocate the transaction price to the separate performance obligations in the contract; and recognize revenue when (or as) the entity satisfies each performance obligation. In August of 2015, the FASB issued ASU 2015-14 which defers the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2017 and interim periods in the year of adoption. The Company adopted ASU 2014-09 in fiscal 2018 beginning February 4, 2018 using the modified retrospective approach. The Company’s primary source of revenue is derived from the sale of clothing and accessories to its customers with the Company’s performance obligations satisfied immediately when the customer pays for their purchase and receives the merchandise. As such, adoption of the new standard did not have a material impact on the Company’s consolidated balance sheet, results of operations or cash flows. Additionally, the adoption of the ASU did not result in significant changes to the Company’s business processes, controls, systems. Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) which amends the existing guidance in ASC Topic 840, Leases. Additional amendments to the standard were issued subsequent to the initial release. The new standard requires lessees to recognize a right-of-use (“ROU”) asset and a lease liability on the balance sheet for leases with such obligations representing the discounted value of future lease payments. The Company will adopt the requirements of the new lease standard effective February 3, 2019, the first day of fiscal 2019. As part of the implementation process, the Company has assessed its lease arrangements and evaluated practical expedient and accounting policy elections. The Company is finalizing its evaluation of processes and controls, and has implemented necessary modifications to its existing lease system. In adopting the new lease standard, the Company will elect the optional transition method which will apply the standard as of the effective date, but will not apply the standard to the comparative periods previously presented in its consolidated financial statements. At the adoption date, the Company expects to recognize a cumulative effect adjustment to retained earnings as a result of the impairment of certain ROU assets. The new standard provides optional practical expedients in transition. The Company is electing the transition package of practical expedients allowed by the standard which permits it to not reassess prior conclusions regarding lease classification, identification and initial direct costs. Further, the Company is electing a short-term lease exception policy which permits it to not apply the recognition requirements of this standard to short-term leases (leases with terms of 12 months or less), as well as an accounting policy to account for lease and non-lease components as a single component for certain classes of assets. The Company is not electing the hindsight practical expedient. The adoption of ASU 2016-02 will have a material impact on the Company's consolidated balance sheet due to the recognition of ROU assets and lease liabilities related to operating leases. The Company expects to record operating lease liabilities totaling approximately $130 million to $150 million based on the present value of the remaining minimum rental payments using a discount rate as of the date of adoption. The Company also expects to record corresponding ROU assets based on the operating lease liabilities as adjusted for prepaid and deferred rent, unamortized lease incentives and other transition adjustments. These estimates may differ from the actual amounts recorded upon adoption in fiscal 2019 as they are based on transition procedures completed to date. The Company does not expect a material impact to its consolidated statement of operations or consolidated statement of cash flows. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Summary of Significant Accounting Policies | |
Schedule of revenue from contracts with customers disaggregated by major product line | Percentage of Net Sales 2018 2017 2016 Accessories 32 % 32 % 31 % Children’s 23 % 23 % 23 % Ladies’ 22 % 23 % 24 % Men’s 17 % 17 % 17 % Home 6 % 5 % 5 % |
Schedule of reconciliation of the number of average common shares outstanding used to calculate basic and diluted earnings per share | 2018 2017 2016 Weighted average number of common shares outstanding 13,030,063 14,058,008 14,656,753 Incremental shares from assumed vesting of nonvested restricted stock 39,631 57,887 5,519 Average number of common shares and common stock equivalents outstanding 13,069,694 14,115,895 14,662,272 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Property and Equipment, net | |
Schedule of the components of property and equipment | The components of property and equipment as of February 2, 2019 and February 3, 2018 are as follows (in thousands): February 2, February 3, 2019 2018 Land $ 479 $ 479 Buildings 30,779 30,540 Leasehold improvements 97,825 93,653 Furniture, fixtures and equipment 132,067 127,816 Computer equipment 38,039 37,115 Construction in progress 2,993 1,873 302,182 291,476 Accumulated depreciation (245,958) (229,699) $ 56,224 $ 61,777 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Fair Value Measurements | |
Schedule of investment securities classified as held-to-maturity | As of February 2, 2019, the Company’s investment securities are classified as held-to-maturity since the Company has the intent and ability to hold the investments to maturity. Such securities are carried at amortized cost plus accrued interest and consist of the following (in thousands): Gross Gross Amortized Unrealized Unrealized Fair Market Cost Gains Losses Value Short-term: Obligations of the U.S. Treasury and U.S. government agencies (Level 1) $ 38,706 $ 4 $ (37) $ 38,673 Obligations of states and municipalities (Level 2) 95 — — 95 Bank certificates of deposit (Level 2) 11,549 — — 11,549 $ 50,350 $ 4 $ (37) $ 50,317 Long-term: Obligations of the U.S. Treasury (Level 1) $ 4,956 $ — $ (16) $ 4,940 Bank certificates of deposit (Level 2) 3,927 — — 3,927 $ 8,883 $ — $ (16) $ 8,867 As of February 3, 2018, the Company’s investment securities were classified as held-to-maturity and consisted of the following (in thousands): Gross Gross Amortized Unrealized Unrealized Fair Market Cost Gains Losses Value Short-term: Obligations of the U.S. Treasury and U.S. government agencies (Level 1) $ 10,162 $ — $ (25) $ 10,137 Obligations of states and municipalities (Level 2) 8,111 1 (2) 8,110 Bank certificates of deposit (Level 2) 13,227 — - 13,227 $ 31,500 $ 1 $ (27) $ 31,474 Long-term: Obligations of the U.S. Treasury (Level 1) $ 9,967 $ — $ (116) $ 9,851 Bank certificates of deposit (Level 2) 15,484 — - 15,484 $ 25,451 $ — $ (116) $ 25,335 |
Schedule of amortized cost and fair market value of investment securities by contractual maturity | The amortized cost and fair market value of investment securities as of February 2, 2019 by contractual maturity are as follows (in thousands): Fair Amortized Market Cost Value Mature in one year or less $ 50,350 $ 50,317 Mature after one year through five years 8,883 8,867 $ 59,233 $ 59,184 The amortized cost and fair market value of investment securities as of February 3, 2018 by contractual maturity were as follows (in thousands): Fair Amortized Market Cost Value Mature in one year or less $ 31,500 $ 31,474 Mature after one year through five years 25,451 25,335 $ 56,951 $ 56,809 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Income Taxes | |
Schedule of income tax (benefit) expense | Income tax expense for fiscal 2018, 2017 and 2016 consists of the following (in thousands): 2018 2017 2016 Current: Federal $ (4,326) $ (5,249) $ (3,759) State (1,390) (948) (779) Total current (5,716) (6,197) (4,538) Deferred: Federal 619 (3,078) (1,541) State 143 349 59 Total deferred 762 (2,729) (1,482) Total income tax expense $ (4,954) $ (8,926) $ (6,020) |
Schedule of the reconciliation of income tax (benefit) expense computed using the federal statutory rate to the reported income tax (benefit) expense | Income tax expense computed using the federal statutory rate is reconciled to the reported income tax expense as follows for fiscal 2018, 2017 and 2016 (in thousands): 2018 2017 2016 Statutory rate applied to income before income taxes $ (5,529) $ (7,924) $ (6,773) Revaluation of net deferred tax assets due to the Tax Cuts and Jobs Act — (1,925) — State income taxes, net of federal benefit (1,250) (549) (903) State tax credits 276 252 226 State tax credits - valuation allowance (net of federal benefit) 10 (79) — Tax exempt interest 16 24 20 General business credits 1,409 1,273 1,605 Excess tax benefits from stock based compensation 140 70 — Other (26) (68) (195) Income tax expense $ (4,954) $ (8,926) $ (6,020) |
Schedule of the components of deferred tax assets and deferred tax liabilities | The components of deferred tax assets and deferred tax liabilities as of February 2, 2019 and February 3, 2018 are as follows (in thousands): February 2, February 3, 2019 2018 Deferred tax assets: Deferred rent amortization $ 652 $ 558 Inventory capitalization 1,953 1,863 Book and tax depreciation differences 853 312 Vacation liability 653 585 State tax credits 2,863 2,676 Stock compensation 843 834 Legal expense reserve 178 73 Insurance liabilities 319 537 Other 412 342 Subtotal deferred tax assets 8,726 7,780 Less: State tax credits valuation allowance - net (1,615) (1,624) Total deferred tax assets 7,111 6,156 Deferred tax liabilities: Prepaid expenses (572) (379) Total deferred tax liabilities (572) (379) Net deferred tax asset $ 6,539 $ 5,777 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Other Long-Term Liabilities | |
Schedule of components of other long-term liabilities | The components of other long-term liabilities as of February 2, 2019 and February 3, 2018 are as follows (in thousands): February 2, February 3, 2019 2018 Deferred rent $ 2,344 $ 2,148 Tenant improvement allowances 4,037 4,325 Other 1,814 1,960 $ 8,195 $ 8,433 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Stockholders' Equity | |
Schedule of activity related to nonvested restricted stock grants | Nonvested Weighted Average Restricted Grant Date Shares Fair Value Outstanding as of February 3, 2018 173,208 $ 19.02 Granted 80,045 30.03 Vested (90,033) 19.55 Forfeited — — Outstanding as of February 2, 2019 163,220 $ 24.09 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Commitments and Contingencies | |
Schedule of future minimum rent payments under operating leases having noncancellable lease terms | Future minimum rent payments under operating leases having noncancellable lease terms as of February 2, 2019 are as follows (in thousands): Fiscal Year: 2019 $ 47,289 2020 39,294 2021 28,228 2022 16,880 2023 9,440 Thereafter 7,836 Total future minimum lease payments $ 148,967 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Valuation and Qualifying Accounts | |
Summary of the allowance for inventory shrinkage | The following table summarizes the allowances for inventory shrinkage and deferred tax assets (in thousands): Allowance for Allowance for Inventory Deferred Tax Shrinkage Assets Balance as of January 30, 2016 $ 2,584 $ 1,272 Additions charged to costs and expenses 9,351 — Deductions (8,836) — Balance as of January 28, 2017 3,099 1,272 Additions charged to costs and expenses 11,103 79 Impact of tax reform — 273 Deductions (10,698) — Balance as of February 3, 2018 3,504 1,624 Additions charged to costs and expenses 9,643 — Deductions (10,033) (9) Balance as of February 2, 2019 $ 3,114 $ 1,615 |
Unaudited Quarterly Results o_2
Unaudited Quarterly Results of Operations (Tables) | 12 Months Ended |
Feb. 02, 2019 | |
Unaudited Quarterly Results of Operations | |
Schedule of unaudited quarterly results of operations | Quarter Ended Feb. 2 Nov. 3 Aug. 4 May 5 Feb. 3 Oct. 28 Jul. 29 Apr. 29 2019 2018 2018 2018 2018 (1) 2017 2017 2017 (in thousands, except per share and share amounts) Statement of Operations Data: Net sales $ 201,158 $ 175,364 $ 181,999 $ 211,032 $ 212,143 $ 176,943 $ 166,200 $ 199,955 Cost of sales (exclusive of depreciation shown separately below) (126,095) (110,420) (110,398) (129,413) (131,363) (110,094) (102,175) (122,390) Selling, general and administrative expenses (61,459) (61,189) (62,285) (63,005) (65,623) (61,118) (59,834) (60,487) Depreciation (4,636) (4,600) (4,676) (4,974) (5,020) (4,976) (4,589) (4,298) Asset impairment (152) (180) (942) — (430) — (77) — Income (loss) from operations 8,816 (1,025) 3,698 13,640 9,707 755 (475) 12,780 Interest, net 334 282 325 258 228 178 178 149 Income (loss) before income taxes 9,150 (743) 4,023 13,898 9,935 933 (297) 12,929 Income tax (expense) benefit (1,802) 237 (788) (2,601) (4,688) (286) 87 (4,039) Net income (loss) $ 7,348 $ (506) $ 3,235 $ 11,297 $ 5,247 $ 647 $ (210) $ 8,890 Net income (loss) per common share: (2) Basic $ 0.59 $ $ 0.24 $ 0.83 $ 0.39 $ 0.05 $ $ 0.60 Diluted $ 0.59 $ $ 0.24 $ 0.83 $ 0.38 $ 0.05 $ $ 0.60 Weighted average shares used to compute net income (loss) per common share: Basic 12,447,209 12,780,472 13,314,470 13,578,100 13,567,870 13,563,295 14,381,738 14,719,130 Diluted 12,470,560 12,780,472 13,351,321 13,631,266 13,652,330 13,614,404 14,381,738 14,779,930 (1) (2) |
Organization and Business (Deta
Organization and Business (Details) | Feb. 02, 2019item |
Organization and Business | |
Number of stores operated | 562 |
Number of states in which company operates | 32 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - PPE and Insurance Liabilities (Details) - USD ($) | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Fiscal Year | |||
Length of fiscal year | 364 days | 371 days | 364 days |
Impairment of long lived assets | |||
Non-cash impairment expense related to leasehold improvements and fixtures and equipment | $ 1,300,000 | $ 500,000 | $ 300,000 |
Insurance Liabilities | |||
Self-insured retention or deductible amount per claim for workers' compensation | 250,000 | ||
Self-insured retention or deductible amount per claim for employee medical | $ 100,000 | ||
Furniture, fixtures and equipment | Minimum | |||
Property and Equipment, net | |||
Estimated useful lives | 3 years | ||
Furniture, fixtures and equipment | Maximum | |||
Property and Equipment, net | |||
Estimated useful lives | 5 years | ||
Leasehold improvements | Minimum | |||
Property and Equipment, net | |||
Estimated useful lives | 5 years | ||
Leasehold improvements | Maximum | |||
Property and Equipment, net | |||
Estimated useful lives | 7 years | ||
Building and Building Improvements | Minimum | |||
Property and Equipment, net | |||
Estimated useful lives | 15 years | ||
Building and Building Improvements | Maximum | |||
Property and Equipment, net | |||
Estimated useful lives | 20 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Revenue Recognition and Cost of Sales (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Cost of Sales | |||
Distribution center costs | $ 17.6 | $ 17.4 | $ 17.2 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Returns and Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Revenue, initial application period, cumulative effect transition | |||
Period of time company allows customers to return merchandise | 30 days | ||
Estimated refund liability | $ 0.3 | ||
Carrying value of return asset | $ 0.2 | ||
Accessories | |||
Revenue, initial application period, cumulative effect transition | |||
Revenue from contracts with customers disaggregated by major product line (as a percent) | 32.00% | ||
Accessories | Calculated under revenue guidance in effect before topic 606 | |||
Revenue, initial application period, cumulative effect transition | |||
Revenue from contracts with customers disaggregated by major product line (as a percent) | 32.00% | 31.00% | |
Children's | |||
Revenue, initial application period, cumulative effect transition | |||
Revenue from contracts with customers disaggregated by major product line (as a percent) | 23.00% | ||
Children's | Calculated under revenue guidance in effect before topic 606 | |||
Revenue, initial application period, cumulative effect transition | |||
Revenue from contracts with customers disaggregated by major product line (as a percent) | 23.00% | 23.00% | |
Ladies' | |||
Revenue, initial application period, cumulative effect transition | |||
Revenue from contracts with customers disaggregated by major product line (as a percent) | 22.00% | ||
Ladies' | Calculated under revenue guidance in effect before topic 606 | |||
Revenue, initial application period, cumulative effect transition | |||
Revenue from contracts with customers disaggregated by major product line (as a percent) | 23.00% | 24.00% | |
Men's | |||
Revenue, initial application period, cumulative effect transition | |||
Revenue from contracts with customers disaggregated by major product line (as a percent) | 17.00% | ||
Men's | Calculated under revenue guidance in effect before topic 606 | |||
Revenue, initial application period, cumulative effect transition | |||
Revenue from contracts with customers disaggregated by major product line (as a percent) | 17.00% | 17.00% | |
Home | |||
Revenue, initial application period, cumulative effect transition | |||
Revenue from contracts with customers disaggregated by major product line (as a percent) | 6.00% | ||
Home | Calculated under revenue guidance in effect before topic 606 | |||
Revenue, initial application period, cumulative effect transition | |||
Revenue from contracts with customers disaggregated by major product line (as a percent) | 5.00% | 5.00% |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - EPS, Advertising and Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Advertising | |||||||||||
Advertising expense | $ 1.7 | $ 2 | $ 2.5 | ||||||||
Operating Leases | |||||||||||
Liability for estimated expenses to be incurred upon the termination of entity's operating leases | $ 0.8 | $ 0.8 | $ 0.8 | $ 0.8 | |||||||
Reconciliation of average number of common shares outstanding used to calculate basic and diluted earnings per share | |||||||||||
Weighted average number of common shares outstanding | 12,447,209 | 12,780,472 | 13,314,470 | 13,578,100 | 13,567,870 | 13,563,295 | 14,381,738 | 14,719,130 | 13,030,063 | 14,058,008 | 14,656,753 |
Incremental shares from assumed vesting of nonvested restricted stock | 39,631 | 57,887 | 5,519 | ||||||||
Average number of common shares and common stock equivalents outstanding | 12,470,560 | 12,780,472 | 13,351,321 | 13,631,266 | 13,652,330 | 13,614,404 | 14,381,738 | 14,779,930 | 13,069,694 | 14,115,895 | 14,662,272 |
Stock Options | |||||||||||
Securities excluded from calculation of diluted earnings per share (in shares) | 0 | 0 | 4,000 | ||||||||
Restricted Stock | |||||||||||
Securities excluded from calculation of diluted earnings per share (in shares) | 124,000 | 125,000 | 237,000 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Segments and Concentration Risk (Details) | 12 Months Ended |
Feb. 02, 2019item | |
Summary of Significant Accounting Policies | |
Number of reporting units | 1 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 02, 2019 | Feb. 03, 2019 | |
Short-term lease term | 12 months | |
Accounting Standards Update 2016-02 | Minimum | Forecast | ||
Lease liability | $ 130 | |
Right-of-use (“ROU”) asset | 130 | |
Accounting Standards Update 2016-02 | Maximum | Forecast | ||
Lease liability | 150 | |
Right-of-use (“ROU”) asset | $ 150 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Property and Equipment, net | ||
Property and equipment, gross | $ 302,182 | $ 291,476 |
Accumulated depreciation | (245,958) | (229,699) |
Property and Equipment, net | 56,224 | 61,777 |
Land | ||
Property and Equipment, net | ||
Property and equipment, gross | 479 | 479 |
Buildings | ||
Property and Equipment, net | ||
Property and equipment, gross | 30,779 | 30,540 |
Leasehold improvements | ||
Property and Equipment, net | ||
Property and equipment, gross | 97,825 | 93,653 |
Furniture, fixtures and equipment | ||
Property and Equipment, net | ||
Property and equipment, gross | 132,067 | 127,816 |
Computer equipment | ||
Property and Equipment, net | ||
Property and equipment, gross | 38,039 | 37,115 |
Construction in progress | ||
Property and Equipment, net | ||
Property and equipment, gross | $ 2,993 | $ 1,873 |
Fair Value Measurements - Secur
Fair Value Measurements - Securities Carried at Amortized Cost Plus Accrued Interest (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Investment securities classified as held to maturity | ||
Amortized Cost | $ 59,233 | $ 56,951 |
Fair Market Value | 59,184 | 56,809 |
Short-term Investments | ||
Investment securities classified as held to maturity | ||
Amortized Cost | 50,350 | 31,500 |
Gross Unrealized Gains | 4 | 1 |
Gross Unrealized Losses | (37) | (27) |
Fair Market Value | 50,317 | 31,474 |
Short-term Investments | Obligations of the U.S. Treasury | Fair Value, Inputs, Level 1 | ||
Investment securities classified as held to maturity | ||
Amortized Cost | 38,706 | |
Gross Unrealized Gains | 4 | |
Gross Unrealized Losses | (37) | |
Fair Market Value | 38,673 | |
Short-term Investments | Obligations of the U.S. Treasury | Fair Value, Inputs, Level 2 | ||
Investment securities classified as held to maturity | ||
Amortized Cost | 10,162 | |
Gross Unrealized Losses | (25) | |
Fair Market Value | 10,137 | |
Short-term Investments | Obligations of states and municipalities | Fair Value, Inputs, Level 2 | ||
Investment securities classified as held to maturity | ||
Amortized Cost | 95 | 8,111 |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (2) | |
Fair Market Value | 95 | 8,110 |
Short-term Investments | Bank certificates of deposit | Fair Value, Inputs, Level 1 | ||
Investment securities classified as held to maturity | ||
Amortized Cost | 13,227 | |
Fair Market Value | 13,227 | |
Short-term Investments | Bank certificates of deposit | Fair Value, Inputs, Level 2 | ||
Investment securities classified as held to maturity | ||
Amortized Cost | 11,549 | |
Fair Market Value | 11,549 | |
Long Term Investments | ||
Investment securities classified as held to maturity | ||
Amortized Cost | 8,883 | 25,451 |
Gross Unrealized Losses | (16) | (116) |
Fair Market Value | 8,867 | 25,335 |
Long Term Investments | Obligations of the U.S. Treasury | Fair Value, Inputs, Level 1 | ||
Investment securities classified as held to maturity | ||
Amortized Cost | 4,956 | 9,967 |
Gross Unrealized Losses | (16) | (116) |
Fair Market Value | 4,940 | 9,851 |
Long Term Investments | Bank certificates of deposit | Fair Value, Inputs, Level 2 | ||
Investment securities classified as held to maturity | ||
Amortized Cost | 3,927 | 15,484 |
Fair Market Value | $ 3,927 | $ 15,484 |
Fair Value Measurements - Amort
Fair Value Measurements - Amortized Cost and Fair Market Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 |
Amortized Cost | |||
Mature in one year or less | $ 50,350 | $ 31,500 | |
Mature after one year through five years | 8,883 | 25,451 | |
Total | 59,233 | 56,951 | |
Fair Market Value | |||
Mature in one year or less | 50,317 | 31,474 | |
Mature after one year through five years | 8,867 | 25,335 | |
Fair Market Value | 59,184 | 56,809 | |
Changes among the fair value levels | |||
Changes between Level 1 to Level 2, Assets | 0 | 0 | $ 0 |
Changes between Level 2 to Level 1, Assets | $ 0 | $ 0 | $ 0 |
Revolving Line of Credit (Detai
Revolving Line of Credit (Details) - Line of Credit $ in Millions | Aug. 16, 2016USD ($) | Oct. 27, 2011USD ($) | Feb. 02, 2019USD ($)item |
Revolving Line of Credit | |||
Term of credit facility | 5 years | ||
Maximum borrowing capacity | $ 50 | ||
Number of covenants | item | 1 | ||
Unused commitment fee (as a percent) | 0.25% | ||
Amount of outstanding borrowings prior to cash dividend payment within specified period, per covenant | $ 0 | ||
Period prior to cash dividend payment when no borrowings may be outstanding, per covenant | 30 days | ||
Amount of expected borrowings subsequent to cash dividend payment within specified period, per covenant | $ 0 | ||
Period subsequent to cash dividend payment when no borrowings may be expected, per covenant | 30 days | ||
Borrowings outstanding | $ 0 | ||
Amendment to credit facility | |||
Revolving Line of Credit | |||
Maximum borrowing capacity | $ 50 | ||
Borrowing capacity, accordion feature | 25 | ||
Maximum borrowing capacity including accordion expansion | $ 75 | ||
LIBOR | Amendment to credit facility | Debt Instrument, Variable Rate Base LIBOR | LIBOR Rate Loans | Minimum | |||
Revolving Line of Credit | |||
Margin added to variable rate (as a percent) | 1.25% | ||
LIBOR | Amendment to credit facility | Debt Instrument, Variable Rate Base LIBOR | LIBOR Rate Loans | Maximum | |||
Revolving Line of Credit | |||
Margin added to variable rate (as a percent) | 1.50% | ||
Prime Rate | Amendment to credit facility | Debt Instrument Variable Rate Prime Rate | Base Rate Loans | Minimum | |||
Revolving Line of Credit | |||
Margin added to variable rate (as a percent) | 0.25% | ||
Prime Rate | Amendment to credit facility | Debt Instrument Variable Rate Prime Rate | Base Rate Loans | Maximum | |||
Revolving Line of Credit | |||
Margin added to variable rate (as a percent) | 0.50% | ||
Federal Fund Rate | Amendment to credit facility | Debt Instrument, Variable Rate Base Federal Funds Rate | Base Rate Loans | Minimum | |||
Revolving Line of Credit | |||
Margin added to variable rate (as a percent) | 0.75% | ||
Federal Fund Rate | Amendment to credit facility | Debt Instrument, Variable Rate Base Federal Funds Rate | Base Rate Loans | Maximum | |||
Revolving Line of Credit | |||
Margin added to variable rate (as a percent) | 1.00% |
Income Taxes - Income Tax (Bene
Income Taxes - Income Tax (Benefit) Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Current: | |||||||||||
Federal | $ 4,326 | $ 5,249 | $ 3,759 | ||||||||
State | 1,390 | 948 | 779 | ||||||||
Total current | 5,716 | 6,197 | 4,538 | ||||||||
Deferred: | |||||||||||
Federal | 619 | (3,078) | (1,541) | ||||||||
State | 143 | 349 | 59 | ||||||||
Total deferred | 762 | (2,729) | (1,482) | ||||||||
Total income tax (expense) benefit | $ (1,802) | $ 237 | $ (788) | $ (2,601) | $ (4,688) | $ (286) | $ 87 | $ (4,039) | $ (4,954) | $ (8,926) | $ (6,020) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Federal Statutory Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Reconciliation of income tax (benefit) expense computed using the federal statutory rate to the reported income tax (benefit) expense | |||||||||||
Statutory rate applied to income before income taxes | $ (5,529) | $ (7,924) | $ (6,773) | ||||||||
Revaluation of net deferred tax assets due to the Tax Cuts and Jobs Act | $ (1,900) | (1,925) | |||||||||
State income taxes, net of federal benefit | (1,250) | (549) | (903) | ||||||||
State tax credits | 276 | 252 | 226 | ||||||||
State tax credits - valuation allowance (net of federal benefit) | 10 | (79) | |||||||||
Tax exempt interest | 16 | 24 | 20 | ||||||||
General business credits | 1,409 | 1,273 | 1,605 | ||||||||
Excess tax benefits from stock based compensation | 140 | 70 | |||||||||
Other | (26) | (68) | (195) | ||||||||
Total income tax (expense) benefit | $ (1,802) | $ 237 | $ (788) | $ (2,601) | $ (4,688) | $ (286) | $ 87 | $ (4,039) | $ (4,954) | $ (8,926) | $ (6,020) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Deferred tax assets: | ||
Deferred rent amortization | $ 652 | $ 558 |
Inventory capitalization | 1,953 | 1,863 |
Book and tax depreciation differences | 853 | 312 |
Vacation liability | 653 | 585 |
State tax credits | 2,863 | 2,676 |
Stock compensation | 843 | 834 |
Legal expense reserve | 178 | 73 |
Insurance liabilities | 319 | 537 |
Other | 412 | 342 |
Subtotal deferred tax assets | 8,726 | 7,780 |
Less: State tax credits valuation allowance - net | (1,615) | (1,624) |
Total deferred tax assets | 7,111 | 6,156 |
Deferred tax liabilities: | ||
Prepaid expenses | (572) | (379) |
Total deferred tax liabilities | (572) | (379) |
Net deferred tax asset | $ 6,539 | $ 5,777 |
Income Taxes - Income Tax (Be_2
Income Taxes - Income Tax (Benefit) Expense Components (Details) | 3 Months Ended | 12 Months Ended | 13 Months Ended | 23 Months Ended | ||
Feb. 03, 2018USD ($) | Feb. 02, 2019USD ($)item | Feb. 03, 2018USD ($) | Jan. 28, 2017USD ($) | Feb. 02, 2019USD ($) | Dec. 31, 2017 | |
Income Taxes | ||||||
Benefits not recognized due to uncertainty | $ 0 | $ 0 | ||||
Work opportunity tax benefits not recognized due to uncertainty | $ 0 | $ 0 | ||||
Number of states in which ability to utilize tax credits is no longer more likely than not | item | 1 | |||||
Credits carry back period | 1 year | |||||
Credits carry forward period | 20 years | |||||
Income tax benefit related to federal and state tax credits | $ 1,700,000 | $ 1,300,000 | $ 1,800,000 | |||
Federal statutory tax rate | 33.70% | 21.00% | 35.00% | |||
Reduction in income tax expense due to Tax Cuts and Jobs Act tax reform legislation | 300,000 | |||||
Reduction of net deferred tax assets | $ 1,900,000 | $ 1,925,000 |
Other Long-Term Liabilities (De
Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Feb. 02, 2019 | Feb. 03, 2018 |
Other Long-Term Liabilities | ||
Deferred rent | $ 2,344 | $ 2,148 |
Tenant improvement allowances | 4,037 | 4,325 |
Other | 1,814 | 1,960 |
Other long-term liabilities total | $ 8,195 | $ 8,433 |
Stockholders' Equity - Stock Re
Stockholders' Equity - Stock Repurchase Program and Cash Dividends (Details) $ / shares in Units, $ in Thousands | Feb. 12, 2019$ / shares | Dec. 26, 2018$ / shares | Sep. 18, 2018$ / shares | Jun. 19, 2018$ / shares | Mar. 20, 2018$ / shares | Feb. 02, 2019USD ($)itemshares | Nov. 03, 2018shares | Aug. 04, 2018shares | May 05, 2018shares | Nov. 03, 2018USD ($) | Feb. 02, 2019USD ($)item | Feb. 03, 2018USD ($) | Nov. 30, 2018USD ($) | Mar. 31, 2018USD ($) |
Stockholders' Equity | ||||||||||||||
Stock Repurchased During Period, Value | $ 40,400 | $ 25,035 | ||||||||||||
Cash dividends declared per share | $ / shares | $ 0.08 | |||||||||||||
Number of quarters dividends paid | item | 4 | 4 | ||||||||||||
Cash dividend paid per share | $ / shares | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | ||||||||||
Stock Repurchase Program | ||||||||||||||
Stockholders' Equity | ||||||||||||||
Stock Repurchased During Period, Shares | shares | 768,558 | 866,748 | 866,748 | 866,748 | ||||||||||
Stock Repurchased During Period, Value | $ 15,400 | $ 25,000 | ||||||||||||
Remaining value of shares available for repurchase | $ 9,600 | $ 9,600 | ||||||||||||
Stock Repurchase Program | Maximum | ||||||||||||||
Stockholders' Equity | ||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 25,000 | $ 25,000 |
Stockholders' Equity - Time-Bas
Stockholders' Equity - Time-Based Nonvested Restricted Stock Granted to Employees (Details) - Restricted Stock - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Stockholders' Equity | |||
Compensation expense | $ 2.2 | $ 1.6 | $ 2.9 |
Future compensation expense to be recognized | $ 2.2 | ||
Period for recognition of future compensation expense over the requisite service period | 3 years | ||
Employee | |||
Stockholders' Equity | |||
Vesting period | 3 years | ||
Director | |||
Stockholders' Equity | |||
Vesting period | 1 year |
Stockholders Equity - Activity
Stockholders Equity - Activity for Time-Based Nonvested Restricted Stock Grants (Details) - Restricted Stock | 12 Months Ended |
Feb. 02, 2019$ / sharesshares | |
Nonvested Restricted Shares | |
Outstanding at the beginning of the period (in shares) | shares | 173,208 |
Granted (in shares) | shares | 80,045 |
Vested (in shares) | shares | (90,033) |
Outstanding at the end of the period (in shares) | shares | 163,220 |
Weighted Average Grant Date Fair Value | |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 19.02 |
Granted (in dollars per share) | $ / shares | 30.03 |
Vested (in dollars per share) | $ / shares | 19.55 |
Outstanding at the end of the period (in dollars per share) | $ / shares | $ 24.09 |
Stockholders' Equity - Restrict
Stockholders' Equity - Restricted Stock Units (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||
Mar. 31, 2018USD ($)item$ / sharesshares | Mar. 31, 2017USD ($)item$ / sharesshares | Apr. 02, 2016 | Mar. 31, 2016USD ($)item$ / sharesshares | Feb. 02, 2019USD ($) | Nov. 03, 2018USD ($) | Aug. 04, 2018USD ($) | May 05, 2018USD ($) | Feb. 03, 2018USD ($) | Oct. 28, 2017USD ($) | Jul. 29, 2017USD ($) | Apr. 29, 2017USD ($) | Feb. 02, 2019USD ($)itemshares | Feb. 03, 2018USD ($)item | Jan. 28, 2017USD ($) | |
Stockholders' Equity | |||||||||||||||
Income tax benefit | $ 1,802,000 | $ (237,000) | $ 788,000 | $ 2,601,000 | $ 4,688,000 | $ 286,000 | $ (87,000) | $ 4,039,000 | $ 4,954,000 | $ 8,926,000 | $ 6,020,000 | ||||
Restricted Stock | |||||||||||||||
Stockholders' Equity | |||||||||||||||
Compensation expense | 2,200,000 | 1,600,000 | $ 2,900,000 | ||||||||||||
Income tax benefit | $ 140,000 | $ 70,000 | |||||||||||||
Granted (in shares) | shares | 80,045 | ||||||||||||||
Restricted Stock | Employee | |||||||||||||||
Stockholders' Equity | |||||||||||||||
Vesting period | 3 years | ||||||||||||||
Restricted Stock | Director | |||||||||||||||
Stockholders' Equity | |||||||||||||||
Vesting period | 1 year | ||||||||||||||
March 2016 RSU | |||||||||||||||
Stockholders' Equity | |||||||||||||||
Expiration period | 3 years | ||||||||||||||
Compensation expense | $ 238,000 | ||||||||||||||
Number of employees to whom awards are granted | item | 2 | ||||||||||||||
Percentage of vesting upon achieving specific performance | 25.00% | ||||||||||||||
Number of consecutive period for which closing stock price should be achieved to vest shares | 20 days | ||||||||||||||
First target price for vesting of shares (in dollars per share) | $ / shares | $ 30.44 | $ 20.75 | |||||||||||||
Second target price for vesting of shares (in dollars per share) | $ / shares | 35.01 | 23.50 | |||||||||||||
Third target price for vesting of shares (in dollars per share) | $ / shares | $ 40.26 | 26.25 | |||||||||||||
Fourth target price for vesting of shares (in dollars per share) | $ / shares | $ 29 | ||||||||||||||
Number of thresholds achieved | item | 2 | 2 | |||||||||||||
Granted (in shares) | shares | 24,816 | ||||||||||||||
March 2017 RSU | |||||||||||||||
Stockholders' Equity | |||||||||||||||
Expiration period | 3 years | ||||||||||||||
Compensation expense | $ 306,000 | ||||||||||||||
Number of employees to whom awards are granted | item | 2 | ||||||||||||||
Percentage of vesting upon achieving specific performance | 25.00% | ||||||||||||||
Number of consecutive period for which closing stock price should be achieved to vest shares | 20 days | ||||||||||||||
First target price for vesting of shares (in dollars per share) | $ / shares | $ 19.10 | ||||||||||||||
Second target price for vesting of shares (in dollars per share) | $ / shares | 21.70 | ||||||||||||||
Third target price for vesting of shares (in dollars per share) | $ / shares | 24.30 | ||||||||||||||
Fourth target price for vesting of shares (in dollars per share) | $ / shares | $ 26.90 | ||||||||||||||
Number of employees to whom awards are granted who subsequently resigned | item | 1 | ||||||||||||||
Number of thresholds achieved | item | 3 | ||||||||||||||
Granted (in shares) | shares | 23,551 | ||||||||||||||
March 2018 RSU | |||||||||||||||
Stockholders' Equity | |||||||||||||||
Expiration period | 3 years | ||||||||||||||
Compensation expense | $ 137,000 | ||||||||||||||
Percentage of vesting upon achieving specific performance | 33.00% | ||||||||||||||
Number of consecutive period for which closing stock price should be achieved to vest shares | 20 days | ||||||||||||||
Number of employees to whom awards are granted who subsequently resigned | item | 1 | ||||||||||||||
Number of thresholds achieved | item | 1 | ||||||||||||||
Granted (in shares) | shares | 8,400 | ||||||||||||||
March 2018 EBITDA RSU | |||||||||||||||
Stockholders' Equity | |||||||||||||||
Expiration period | 3 years | ||||||||||||||
Compensation expense | $ 78,000 | ||||||||||||||
Number of employees to whom awards are granted | item | 1 | ||||||||||||||
Percentage of vesting upon achieving specific performance | 33.00% | ||||||||||||||
Trailing month EBITDA should be achieved to vest shares under the share based compensation plan | 12 months | ||||||||||||||
First adjusted EBITDA level for vesting of shares under the share based compensation plan | $ 51,400,000 | ||||||||||||||
Second adjusted EBITDA level for vesting of shares under the share based compensation plan | 59,100,000 | ||||||||||||||
Third adjusted EBITDA level for vesting of shares under the share based compensation plan | $ 67,900,000 | ||||||||||||||
Number of thresholds achieved | 0 | ||||||||||||||
Granted (in shares) | shares | 8,401 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Rent Payments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Commitments and Contingencies | |||
Initial term | 5 years | ||
Rent expense | $ 55,300 | $ 53,000 | $ 50,700 |
Rent expense as a percentage of net sales | 500 | $ 500 | $ 400 |
Future minimum rent payments under operating leases | |||
2019 | 47,289 | ||
2020 | 39,294 | ||
2021 | 28,228 | ||
2022 | 16,880 | ||
2023 | 9,440 | ||
Thereafter | 7,836 | ||
Total future minimum lease payments | $ 148,967 |
Valuation and Qualifying Acco_3
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | 13 Months Ended | 23 Months Ended | ||
Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | Feb. 02, 2019 | Dec. 31, 2017 | |
Changes in the allowance for inventory shrinkage | |||||
Federal statutory tax rate | 33.70% | 21.00% | 35.00% | ||
Allowance for Inventory Shrinkage | |||||
Changes in the allowance for inventory shrinkage | |||||
Balance at the beginning of the period | $ 3,504 | $ 3,099 | $ 2,584 | $ 2,584 | |
Additions charged to costs and expenses | 9,643 | 11,103 | 9,351 | ||
Deductions | (10,033) | (10,698) | (8,836) | ||
Balance at the end of the period | 3,114 | 3,504 | 3,099 | $ 3,114 | |
Allowance for Deferred Tax Assets | |||||
Changes in the allowance for inventory shrinkage | |||||
Balance at the beginning of the period | 1,624 | 1,272 | 1,272 | $ 1,272 | |
Additions charged to costs and expenses | 79 | ||||
Impact of tax reform | 273 | ||||
Deductions | (9) | ||||
Balance at the end of the period | $ 1,615 | $ 1,624 | $ 1,272 | $ 1,615 |
Unaudited Quarterly Results o_3
Unaudited Quarterly Results of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 03, 2018 | Oct. 28, 2017 | Jul. 29, 2017 | Apr. 29, 2017 | Feb. 02, 2019 | Feb. 03, 2018 | Jan. 28, 2017 | |
Statement of Income Data: | |||||||||||
Net sales | $ 201,158 | $ 175,364 | $ 181,999 | $ 211,032 | $ 212,143 | $ 176,943 | $ 166,200 | $ 199,955 | $ 769,553 | $ 755,241 | $ 695,175 |
Cost of sales (exclusive of depreciation shown separately below) | (126,095) | (110,420) | (110,398) | (129,413) | (131,363) | (110,094) | (102,175) | (122,390) | (476,326) | (466,022) | (428,167) |
Selling, general and administrative expenses | (61,459) | (61,189) | (62,285) | (63,005) | (65,623) | (61,118) | (59,834) | (60,487) | (247,938) | (247,062) | (230,666) |
Depreciation | (4,636) | (4,600) | (4,676) | (4,974) | (5,020) | (4,976) | (4,589) | (4,298) | (18,886) | (18,883) | (17,090) |
Asset impairment | (152) | (180) | (942) | (430) | (77) | (1,274) | (507) | (313) | |||
Income from operations | 8,816 | (1,025) | 3,698 | 13,640 | 9,707 | 755 | (475) | 12,780 | 25,129 | 22,767 | 18,939 |
Interest, net | 334 | 282 | 325 | 258 | 228 | 178 | 178 | 149 | |||
Income before income taxes | 9,150 | (743) | 4,023 | 13,898 | 9,935 | 933 | (297) | 12,929 | 26,328 | 23,500 | 19,351 |
Income tax expense | (1,802) | 237 | (788) | (2,601) | (4,688) | (286) | 87 | (4,039) | (4,954) | (8,926) | (6,020) |
Net income | $ 7,348 | $ (506) | $ 3,235 | $ 11,297 | $ 5,247 | $ 647 | $ (210) | $ 8,890 | $ 21,374 | $ 14,574 | $ 13,331 |
Net income (loss) per common share: (2) | |||||||||||
Basic (in dollars per share) | $ 0.59 | $ (0.04) | $ 0.24 | $ 0.83 | $ 0.39 | $ 0.05 | $ (0.01) | $ 0.60 | $ 1.64 | $ 1.04 | $ 0.91 |
Diluted (in dollars per share) | $ 0.59 | $ (0.04) | $ 0.24 | $ 0.83 | $ 0.38 | $ 0.05 | $ (0.01) | $ 0.60 | $ 1.64 | $ 1.03 | $ 0.91 |
Weighted average shares used to compute net income (loss) per common share: | |||||||||||
Basic | 12,447,209 | 12,780,472 | 13,314,470 | 13,578,100 | 13,567,870 | 13,563,295 | 14,381,738 | 14,719,130 | 13,030,063 | 14,058,008 | 14,656,753 |
Diluted | 12,470,560 | 12,780,472 | 13,351,321 | 13,631,266 | 13,652,330 | 13,614,404 | 14,381,738 | 14,779,930 | 13,069,694 | 14,115,895 | 14,662,272 |
Subsequent Events (Details)
Subsequent Events (Details) | Apr. 11, 2019USD ($) |
Subsequent Events | Maximum | |
Subsequent Events | |
Settlement agreement paid | $ 500,000 |