Citi Trends (CTRN) 10-Q 8 Dec 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Oct. 31, 2020	Nov. 16, 2020
Document and Entity Information
Document Type	10-Q
Document Period End Date	Oct. 31, 2020
Entity File Number	000-51315
Entity Registrant Name	CITI TRENDS, INC.
Document Quarterly Report	true
Document Transition Report	false
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	52-2150697
Entity Address, Address Line One	104 Coleman Boulevard
Entity Address, City or Town	Savannah
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	31408
City Area Code	912
Local Phone Number	236-1561
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	CTRN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		10,138,962
Current Fiscal Year End Date	--01-30
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001318484
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 31, 2020	Feb. 01, 2020
Current assets:
Cash and cash equivalents	$ 96,762	$ 19,923
Short-term investment securities		27,562
Inventory	114,405	138,258
Prepaid and other current assets	17,376	14,278
Income tax receivable	1,198	1,186
Total current assets	229,741	201,207
Property and equipment, net of accumulated depreciation of $275,599 and $262,570 as of October 31, 2020 and February 1, 2020, respectively	63,564	64,985
Operating lease right of use assets	182,338	169,854
Long-term investment securities		15,675
Deferred income taxes	5,526	6,669
Other assets	752	755
Total assets	481,921	459,145
Current liabilities:
Accounts payable	87,757	79,596
Operating lease liabilities	47,976	42,944
Accrued expenses	16,051	14,755
Accrued compensation	16,445	13,013
Layaway deposits	1,737	554
Total current liabilities	169,966	150,862
Noncurrent operating lease liabilities	148,766	135,316
Other long-term liabilities	2,256	1,923
Total liabilities	320,988	288,101
Stockholders' equity:
Common stock, $0.01 par value. Authorized 32,000,000 shares; 15,968,849 shares issued as of October 31, 2020 and 15,907,666 shares issued as of February 1, 2020; 10,259,260 shares outstanding as of October 31, 2020 and 10,834,134 shares outstanding as of February 1, 2020	158	157
Paid in capital	94,101	93,180
Retained earnings	191,881	186,772
Treasury stock, at cost; 5,709,589 shares held as of October 31, 2020 and 5,073,532 shares held as of February 1, 2020	(125,207)	(109,065)
Total stockholders' equity	160,933	171,044
Commitments and contingencies (note 8)
Total liabilities and stockholders' equity	$ 481,921	$ 459,145

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Oct. 31, 2020	Feb. 01, 2020
Condensed Consolidated Balance Sheets
Accumulated depreciation	$ 275,599	$ 262,570
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	15,968,849	15,907,666
Common stock, shares outstanding	10,259,260	10,834,134
Treasury stock, shares	5,709,589	5,073,532

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2020	Nov. 02, 2019	Oct. 31, 2020	Nov. 02, 2019
Consolidated Statements of Operations
Net sales	$ 199,100	$ 183,050	$ 531,375	$ 570,912
Revenue, Product and Service [Extensible List]	Net sales	Net sales	Net sales	Net sales
Cost of sales (exclusive of depreciation)	$ (115,827)	$ (114,579)	$ (327,344)	$ (357,429)
Selling, general and administrative expenses	(69,230)	(65,539)	(180,929)	(191,975)
Depreciation	(4,703)	(4,520)	(14,582)	(13,741)
Asset impairment			(286)	(472)
Income (loss) from operations	9,340	(1,588)	8,234	7,295
Interest income	4	421	235	1,214
Interest expense	(193)	(39)	(733)	(117)
Income (loss) before income taxes	9,151	(1,206)	7,736	8,392
Income tax (provision) benefit	(2,186)	122	(1,796)	(1,311)
Net income (loss)	$ 6,965	$ (1,084)	$ 5,940	$ 7,081
Basic net income (loss) per common share	$ 0.67	$ (0.09)	$ 0.57	$ 0.60
Diluted net income (loss) per common share	$ 0.67	$ (0.09)	$ 0.57	$ 0.60
Weighted average number of shares outstanding
Basic	10,364,842	11,635,707	10,419,557	11,831,248
Diluted	10,401,153	11,635,707	10,444,106	11,841,745

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2020	Nov. 02, 2019
Operating activities:
Net income	$ 5,940	$ 7,081
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	14,582	13,741
Non-cash operating lease costs	36,082	33,920
Asset impairment	286	472
Loss on disposal of property and equipment	22	23
Deferred income taxes	1,143	194
Insurance proceeds related to operating activities		1,012
Non-cash stock-based compensation expense	1,502	1,446
Changes in assets and liabilities:
Inventory	23,853	4,079
Prepaid and other current assets	(7,360)	(1,064)
Other assets	3	(12)
Accounts payable	7,653	(1,803)
Accrued expenses and other long-term liabilities	(25,266)	(33,142)
Accrued compensation	3,432	(3,175)
Income tax receivable/payable	(12)	(3,343)
Layaway deposits	1,183	1,682
Net cash provided by operating activities	63,043	21,111
Investing activities:
Sales/redemptions of investment securities	43,759	44,615
Purchases of investment securities	(522)	(33,959)
Purchases of property and equipment	(11,888)	(13,227)
Insurance proceeds related to investing activities		573
Net cash provided by (used in) investing activities	31,349	(1,998)
Financing activities:
Borrowings under revolving credit facility	43,700
Repayments of revolving credit facility	(43,700)
Cash used to settle withholding taxes on the vesting of nonvested restricted stock	(580)	(728)
Dividends paid to stockholders	(831)	(2,850)
Repurchases of common stock	(16,142)	(9,667)
Net cash used in financing activities	(17,553)	(13,245)
Net increase in cash and cash equivalents	76,839	5,868
Cash and cash equivalents:
Beginning of period	19,923	17,863
End of period	96,762	23,731
Supplemental disclosures of cash flow information:
Cash paid for interest	733	95
Cash payments of income taxes	665	4,460
Supplemental disclosures of non-cash investing activities:
Accrual for purchases of property and equipment	$ 1,400	$ 873

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Paid in Capital	Retained EarningsCumulative Effect, Period of Adoption, Adjustment	Retained Earnings	Treasury Stock	Cumulative Effect, Period of Adoption, Adjustment	Total
Balances at Feb. 02, 2019	$ 157	$ 91,794	$ (2,060)	$ 176,094	$ (80,620)	$ (2,060)	$ 187,425
Balances (in shares) at Feb. 02, 2019	15,827,713				3,669,476
Increase (Decrease) in Stockholders' Equity
Vesting of nonvested restricted stock units	$ 1						1
Issuance of nonvested shares under incentive plan (in shares)	57,133
Stock-based compensation expense		706					706
Net share settlement of nonvested shares and restricted stock units	$ (1)	(712)					(713)
Net share settlement of nonvested shares and restricted stock units (in shares)	(36,237)
Repurchase of common stock					$ (1,640)		(1,640)
Repurchase of common stock (in shares)					82,312
Dividends paid to stockholders				(958)			(958)
Net income (loss)				7,788			7,788
Balances at May. 04, 2019	$ 157	91,788		180,864	$ (82,260)		190,549
Balances (in shares) at May. 04, 2019	15,848,609				3,751,788
Balances at Feb. 02, 2019	$ 157	91,794	$ (2,060)	176,094	$ (80,620)	$ (2,060)	187,425
Balances (in shares) at Feb. 02, 2019	15,827,713				3,669,476
Increase (Decrease) in Stockholders' Equity
Net income (loss)							7,081
Balances at Nov. 02, 2019	$ 157	92,512		178,265	$ (90,287)		180,647
Balances (in shares) at Nov. 02, 2019	15,882,403				4,232,289
Balances at May. 04, 2019	$ 157	91,788		180,864	$ (82,260)		190,549
Balances (in shares) at May. 04, 2019	15,848,609				3,751,788
Increase (Decrease) in Stockholders' Equity
Issuance of nonvested shares under incentive plan (in shares)	27,478
Forfeiture of nonvested shares (in shares)	(19,969)
Stock-based compensation expense		348					348
Net share settlement of nonvested shares and restricted stock units		(16)					(16)
Net share settlement of nonvested shares and restricted stock units (in shares)	(837)
Repurchase of common stock					$ (2,904)		(2,904)
Repurchase of common stock (in shares)					190,288
Dividends paid to stockholders				(954)			(954)
Net income (loss)				377			377
Balances at Aug. 03, 2019	$ 157	92,120		180,287	$ (85,164)		187,400
Balances (in shares) at Aug. 03, 2019	15,855,281				3,942,076
Increase (Decrease) in Stockholders' Equity
Issuance of nonvested shares under incentive plan (in shares)	27,122
Stock-based compensation expense		392					392
Repurchase of common stock					$ (5,123)		(5,123)
Repurchase of common stock (in shares)					290,213
Dividends paid to stockholders				(938)			(938)
Net income (loss)				(1,084)			(1,084)
Balances at Nov. 02, 2019	$ 157	92,512		178,265	$ (90,287)		180,647
Balances (in shares) at Nov. 02, 2019	15,882,403				4,232,289
Balances at Feb. 01, 2020	$ 157	93,180		186,772	$ (109,065)		$ 171,044
Balances (in shares) at Feb. 01, 2020	15,907,666				5,073,532		15,907,666
Increase (Decrease) in Stockholders' Equity
Vesting of nonvested restricted stock units	$ 1						$ 1
Issuance of nonvested shares under incentive plan (in shares)	86,025
Forfeiture of nonvested shares (in shares)	(8,872)
Stock-based compensation expense		469					469
Net share settlement of nonvested shares and restricted stock units		(479)					(479)
Net share settlement of nonvested shares and restricted stock units (in shares)	(34,487)
Repurchase of common stock					$ (6,254)		(6,254)
Repurchase of common stock (in shares)					260,254
Dividends paid to stockholders				(831)			(831)
Net income (loss)				(20,892)			(20,892)
Balances at May. 02, 2020	$ 158	93,170		165,049	$ (115,319)		143,058
Balances (in shares) at May. 02, 2020	15,950,332				5,333,786
Balances at Feb. 01, 2020	$ 157	93,180		186,772	$ (109,065)		$ 171,044
Balances (in shares) at Feb. 01, 2020	15,907,666				5,073,532		15,907,666
Increase (Decrease) in Stockholders' Equity
Net income (loss)							$ 5,940
Balances at Oct. 31, 2020	$ 158	94,101		191,881	$ (125,207)		$ 160,933
Balances (in shares) at Oct. 31, 2020	15,968,849				5,709,589		15,968,849
Balances at May. 02, 2020	$ 158	93,170		165,049	$ (115,319)		$ 143,058
Balances (in shares) at May. 02, 2020	15,950,332				5,333,786
Increase (Decrease) in Stockholders' Equity
Issuance of nonvested shares under incentive plan (in shares)	17,808
Stock-based compensation expense		536					536
Net share settlement of nonvested shares and restricted stock units		(4)					(4)
Net share settlement of nonvested shares and restricted stock units (in shares)	(192)
Net income (loss)				19,867			19,867
Balances at Aug. 01, 2020	$ 158	93,702		184,916	$ (115,319)		163,457
Balances (in shares) at Aug. 01, 2020	15,967,948				5,333,786
Increase (Decrease) in Stockholders' Equity
Issuance of nonvested shares under incentive plan (in shares)	11,047
Forfeiture of nonvested shares (in shares)	(6,346)
Stock-based compensation expense		497					497
Net share settlement of nonvested shares and restricted stock units		(98)					(98)
Net share settlement of nonvested shares and restricted stock units (in shares)	(3,800)
Repurchase of common stock					$ (9,888)		(9,888)
Repurchase of common stock (in shares)					375,803
Net income (loss)				6,965			6,965
Balances at Oct. 31, 2020	$ 158	$ 94,101		$ 191,881	$ (125,207)		$ 160,933
Balances (in shares) at Oct. 31, 2020	15,968,849				5,709,589		15,968,849

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	May 02, 2020	Nov. 02, 2019	Aug. 03, 2019	May 04, 2019
Consolidated Statements of Stockholders' Equity
Dividends paid to stockholders	$ 0.08	$ 0.08	$ 0.08	$ 0.08

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Oct. 31, 2020
Significant Accounting Policies
Significant Accounting Policies	1. Significant Accounting Policies ​ Basis of Presentation Citi Trends, Inc. (collectively referred to herein with its wholly owned subsidiary as the “Company”) is a value-priced retailer of fashion apparel, accessories and home goods for the entire family. As of October 31, 2020, the Company operated ​ The condensed consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim reporting and are unaudited. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The condensed consolidated balance sheet as of February 1, 2020 is derived from the audited financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended February 1, 2020, as amended (the “2019 Form 10-K”). These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the 2019 Form 10-K. Operating results for the thirty-nine weeks ended October 31, 2020 are not necessarily indicative of the results that may be expected for the fiscal year as a result of the seasonality of the business and changes in our business, consumer spending patterns, and the macroeconomic environment, including those resulting from the novel coronavirus (“COVID-19”) pandemic. ​ Fiscal Year The following contains references to fiscal years 2020 and 2019, which represent fiscal years ending or ended on January 30, 2021 and February 1, 2020, respectively. Fiscal 2020 and 2019 both have ​ Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), which introduced an expected credit loss model for the impairment of financial assets measured at amortized costs. The model replaces the incurred loss model for those assets and broadens the information an entity must consider in developing its expected credit loss estimate for assets measured at amortized cost. The Company adopted ASU No. 2016-13 on February 2, 2020. The adoption of the new standard did not have a material impact to the Company’s consolidated financial position, results of operations or cash flows. ​

Impact of the COVID-19 Pandemic

Impact of the COVID-19 Pandemic	9 Months Ended
	Oct. 31, 2020
COVID-19
Impact of the COVID-19 Pandemic
Impact of the COVID-19 Pandemic	2. Impact of the COVID-19 Pandemic ​ In December 2019, COVID-19 emerged and spread worldwide. On March 11, 2020, the World Health Organization declared COVID-19 a pandemic. After closely monitoring and taking into consideration the guidance from federal, state and local governments, the Company temporarily closed all of its retail store locations and distribution centers effective March 20, 2020. Beginning April 24, 2020, the Company started to reopen stores in select states in accordance with state and local government guidelines. As of July 18, 2020, the Company safely reopened all of its stores and distribution centers. ​ The temporary closure of the Company’s stores has had, and may continue to have, an adverse impact on the Company’s financial condition, results of operations and liquidity. In the first quarter of 2020, the Company took several steps to increase its cash position and preserve financial flexibility in light of uncertainties resulting from the COVID-19 pandemic, including (i) the drawdown of million in principal amount under the revolving credit facility on March 20, 2020 and an amendment to the revolving credit facility to extend the term to August 2021; (ii) temporary furloughs of substantially all store and distribution center personnel and a significant portion of the corporate staff, with employee benefits for eligible employees continued through the temporary furloughs; (iii) temporary tiered salary reductions for management level corporate employees and a reduction to the cash portion of non-employee director fees; (iv) extensions of payment terms with vendors and suppliers; and (v) temporarily suspending share repurchases. Other measures taken by the Company to mitigate the impact of the pandemic that began in the first quarter of 2020 and are continuing include negotiating rent concessions with landlords and executing substantial reductions in operating expenses, store occupancy costs, capital expenditures and other costs. ​ On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security ("CARES") Act was signed into law. The provisions include technical corrections to tax depreciation methods for qualified improvement property which allow for accelerated depreciation, an employee retention tax credit and the deferral of the employer portion of social security deposits. As of October 31, 2020, the Company had deferred payment of approximately million of additional tax deposits during the remainder of the calendar year as allowed by the CARES Act. The total amounts of deferred payroll taxes will be paid in equal installments during the fourth calendar quarters of 2021 and 2022. In addition, in the second quarter of 2020, the Company recognized a created under the CARES Act based on qualified wages paid primarily to store and distribution center associates. The retention credit is included in selling, general and administrative expenses on the condensed consolidated statements of operations for the thirty-nine weeks ended October 31, 2020. ​

Cash and Cash Equivalents_Conce

Cash and Cash Equivalents/Concentration of Credit Risk	9 Months Ended
	Oct. 31, 2020
Cash and Cash Equivalents/Concentration of Credit Risk
Cash and Cash Equivalents/Concentration of Credit Risk	3. Cash and Cash Equivalents/Concentration of Credit Risk ​ For purposes of the condensed consolidated balance sheets and condensed 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.

Earnings per Share

Earnings per Share	9 Months Ended
	Oct. 31, 2020
Earnings per Share
Earnings per Share	4. 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. 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 dilutive effect of stock-based compensation arrangements is accounted for using the treasury stock method. The Company includes as assumed proceeds the amount of compensation cost attributed to future services and not yet recognized. For the thirty-nine weeks ended October 31, 2020 and November 2, 2019, there were shares of nonvested restricted stock, respectively, excluded from the calculation of diluted earnings per share because of antidilution. For the thirteen weeks ended October 31, 2020 and November 2, 2019, there were ​ The following table provides a reconciliation of the weighted average number of 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: ​ ​ ​ ​ ​ ​ ​ ​ Thirty-Nine Weeks Ended ​ October 31, 2020 November 2, 2019 Weighted average number of common shares outstanding ​ 10,419,557 ​ 11,831,248 Incremental shares from assumed vesting of nonvested restricted stock ​ 24,549 ​ 10,497 Weighted average number of common shares and common stock equivalents outstanding ​ 10,444,106 ​ 11,841,745 ​ ​ ​ ​ ​ ​ ​ ​ Thirteen Weeks Ended ​ October 31, 2020 November 2, 2019 Weighted average number of common shares outstanding ​ 10,364,842 ​ 11,635,707 Incremental shares from assumed vesting of nonvested restricted stock ​ 36,311 ​ — Weighted average number of common shares and common stock equivalents outstanding ​ 10,401,153 ​ 11,635,707 ​

Impairment of Assets

Impairment of Assets	9 Months Ended
	Oct. 31, 2020
Impairment of Assets
Impairment of Assets	5. Impairment of Assets ​ If facts and circumstances indicate that a long-lived asset or operating lease right-of-use 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 expenses consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ Thirty-Nine Weeks Ended ​ October 31, 2020 November 2, 2019 Operating lease right-of-use asset impairment $ 181 ​ $ 190 Store asset impairment ​ 105 ​ ​ 282 Total asset impairment $ 286 ​ $ 472 ​

Revolving Credit Facility

Revolving Credit Facility	9 Months Ended
	Oct. 31, 2020
Revolving Credit Facility
Revolving Credit Facility	6. Revolving Credit Facility ​ 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 facility was amended again on May 12, 2020, extending the maturity date to August 18, 2021. The amended facility provides a million. The facility is secured by the Company’s inventory, accounts receivable and related assets, but not its real estate, fixtures and equipment, and it contains financial covenant, a fixed charge coverage ratio, which is applicable and tested only in certain circumstances. The facility has an unused commitment fee of and permits the payment of cash dividends subject to certain limitations. Borrowings under the Revolving Credit Facility bear interest (a) for Eurodollar Loans, at a rate equal to LIBOR plus either , based in any such case on the average daily availability for borrowings under the facility. On March 20, 2020, in response to the COVID-19 pandemic, the Company borrowed million on the credit facility to enhance its liquidity position. Such borrowings accrued interest ranging from . During the second quarter of 2020, the Company repaid million of the outstanding borrowings. On September 11, 2020, the Company repaid the full amount outstanding under the credit facility.

Income Taxes

Income Taxes	9 Months Ended
	Oct. 31, 2020
Income Taxes
Income Taxes	7. 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. 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. ​ For the thirty-nine weeks ended October 31, 2020 and November 2, 2019, the Company utilized the annual effective tax rate method to calculate income taxes. ​ The effective income tax rate was 23.2% for the thirty-nine weeks ended October 31, 2020, compared to 15.6% for the thirty-nine weeks ended November 2, 2019. The difference in the effective income tax rate was due to lower federal and state tax credits this year. ​

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Oct. 31, 2020
Commitments and Contingencies
Commitments and Contingencies	8. Commitments and Contingencies ​ The Company from time to time is involved in various legal proceedings incidental to the conduct of its business, including claims by customers, landlords, 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.

Stock Repurchase Program and Ca

Stock Repurchase Program and Cash Dividends	9 Months Ended
	Oct. 31, 2020
Stock Repurchase Program and Cash Dividends
Stock Repurchase Program and Cash Dividends	9. Stock Repurchase Program and Cash Dividends ​ Repurchases of Common Stock In November 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 thirty-nine weeks ended November 2, 2019, the Company repurchased ​ In November 2019, the Company’s board of directors approved a new program that authorized the repurchase of up to $25.0 million in shares of the Company’s common stock. During the thirty-nine weeks ended October 31, 2020, the Company repurchased 260,254 shares of its common stock under this program at an aggregate cost of $6.3 million. This repurchase program was completed in February 2020. ​ On March 13, 2020, the Company’s board of directors approved another new program that authorized the repurchase of up to $30.0 million in shares of the Company’s common stock. On March 23, 2020, due to the economic uncertainty stemming from the COVID-19 pandemic, the Company temporarily suspended any repurchases. On September 14, 2020, the Company announced the reinstatement of this program. During the thirteen weeks ended October 31, 2020, the Company repurchased ​ Dividends On February 18, 2020, the Company’s board of directors declared a dividend of $0.08 per common share, which was paid on March 17, 2020 to stockholders of record as of March 3, 2020. On April 28, 2020, the Company announced the suspension of future cash dividends due to the current economic uncertainty stemming from the COVID-19 pandemic. Any determination to declare and pay cash dividends for future quarters will be made by the Company’s board of directors.

Revenue

Revenue	9 Months Ended
	Oct. 31, 2020
Revenue
Revenue	10. Revenue ​ 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 immediately 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. 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. ​ 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. ​ 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 from contracts with customers is disaggregated by major product line. The percentage of net sales related to each classification of its merchandise assortment was approximately: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirty-Nine Weeks Ended ​ Thirteen Weeks Ended ​ ​ October 31, November 2, October 31, November 2, ​ 2020 2019 2020 2019 Accessories 31 % ​ 33 % ​ 30 % ​ 33 % ​ Ladies' 22 % ​ 23 % ​ 20 % ​ 21 % ​ Children's 22 % ​ 22 % ​ 24 % ​ 24 % ​ Men's 17 % ​ 16 % ​ 18 % ​ 16 % ​ Home 8 % ​ 6 % ​ 8 % ​ 6 % ​ ​

Leases

Leases	9 Months Ended
	Oct. 31, 2020
Leases
Leases	11. Leases ​ The Company leases its retail store locations and certain office space and equipment. Leases for store locations are typically for a term of one ​ Total lease cost is comprised of operating lease costs, short-term lease costs and variable lease costs, which include rent paid as a percentage of sales, common area maintenance, real estate taxes and insurance for the Company’s real estate leases. ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirty-Nine Weeks Ended ​ ​ October 31, 2020 ​ November 2, 2019 Operating lease cost $ 36,918 ​ $ 36,137 Variable lease cost ​ 6,458 ​ 6,164 Short term lease cost ​ 1,172 ​ 791 Total lease cost ​ $ 44,548 ​ $ 43,092 ​ In response to the impact of the COVID-19 pandemic on the Company’s operations, the Company suspended certain lease payments under its existing lease agreements. During the suspension of payments, the Company continued to recognize expenses and liabilities for lease obligations and corresponding right-of-use assets on the balance sheet in accordance with the applicable accounting guidance. The Company is engaging in ongoing discussions with landlords regarding the potential restructuring of lease payments and rent concessions. As of October 31, 2020, the Company negotiated contractual rent concessions on certain leases in the form of early renewals, rent deferrals and rent abatements. The Company has elected to account for qualifying COVID-19 related rent concessions as if they were part of the enforceable rights and obligations under the existing lease agreements, as permitted by the updated guidance provided by the FASB in April 2020. As a result of this election, the Company recognized rent abatement credits of approximately ​ Future minimum lease payments as of October 31, 2020 are as follows (in thousands): ​ ​ ​ ​ ​ ​ Fiscal Year Lease Costs Remainder of 2020 $ 12,651 ​ 2021 ​ ​ 52,070 ​ 2022 ​ 43,452 ​ 2023 ​ 35,672 ​ 2024 ​ 27,363 ​ Thereafter ​ 42,789 ​ Total future minimum lease payments ​ ​ 213,997 ​ Less: imputed interest ​ ​ (17,255) (1) Total present value of lease liabilities ​ $ 196,742 (2) ​ (1) Calculated using the incremental borrowing rate for each lease. (2) Includes short-term and long-term operating leases. ​ 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. ​ Supplemental cash flows and other information related to operating leases are as follows (in thousands, except for weighted average amounts): ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirty-Nine Weeks Ended ​ ​ October 31, 2020 ​ November 2, 2019 Cash paid for operating leases $ 32,870 ​ $ 37,379 Right of use assets obtained in exchange for new operating lease liabilities ​ $ 50,926 ​ $ 55,285 ​ ​ ​ ​ ​ Weighted average remaining lease term (years) - operating leases ​ 5.24 ​ 4.67 Weighted average discount rate - operating leases ​ ​ 3.16% ​ ​ 3.59% ​

Summary of Significant Accounti

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Oct. 31, 2020
Significant Accounting Policies
Basis of Presentation	Basis of Presentation Citi Trends, Inc. (collectively referred to herein with its wholly owned subsidiary as the “Company”) is a value-priced retailer of fashion apparel, accessories and home goods for the entire family. As of October 31, 2020, the Company operated ​ The condensed consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim reporting and are unaudited. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The condensed consolidated balance sheet as of February 1, 2020 is derived from the audited financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended February 1, 2020, as amended (the “2019 Form 10-K”). These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the 2019 Form 10-K. Operating results for the thirty-nine weeks ended October 31, 2020 are not necessarily indicative of the results that may be expected for the fiscal year as a result of the seasonality of the business and changes in our business, consumer spending patterns, and the macroeconomic environment, including those resulting from the novel coronavirus (“COVID-19”) pandemic.
Fiscal Year	Fiscal Year The following contains references to fiscal years 2020 and 2019, which represent fiscal years ending or ended on January 30, 2021 and February 1, 2020, respectively. Fiscal 2020 and 2019 both have
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), which introduced an expected credit loss model for the impairment of financial assets measured at amortized costs. The model replaces the incurred loss model for those assets and broadens the information an entity must consider in developing its expected credit loss estimate for assets measured at amortized cost. The Company adopted ASU No. 2016-13 on February 2, 2020. The adoption of the new standard did not have a material impact to the Company’s consolidated financial position, results of operations or cash flows.

Earnings per Share (Tables)

Earnings per Share (Tables)	9 Months Ended
	Oct. 31, 2020
Earnings per Share
Schedule of reconciliation of the number of average common shares outstanding used to calculate basic and diluted earnings per share	​ ​ ​ ​ ​ ​ ​ ​ Thirty-Nine Weeks Ended ​ October 31, 2020 November 2, 2019 Weighted average number of common shares outstanding ​ 10,419,557 ​ 11,831,248 Incremental shares from assumed vesting of nonvested restricted stock ​ 24,549 ​ 10,497 Weighted average number of common shares and common stock equivalents outstanding ​ 10,444,106 ​ 11,841,745 ​ ​ ​ ​ ​ ​ ​ ​ Thirteen Weeks Ended ​ October 31, 2020 November 2, 2019 Weighted average number of common shares outstanding ​ 10,364,842 ​ 11,635,707 Incremental shares from assumed vesting of nonvested restricted stock ​ 36,311 ​ — Weighted average number of common shares and common stock equivalents outstanding ​ 10,401,153 ​ 11,635,707

Impairment of Assets (Tables)

Impairment of Assets (Tables)	9 Months Ended
	Oct. 31, 2020
Impairment of Assets
Schedule of asset impairments	​ ​ ​ ​ ​ ​ ​ ​ Thirty-Nine Weeks Ended ​ October 31, 2020 November 2, 2019 Operating lease right-of-use asset impairment $ 181 ​ $ 190 Store asset impairment ​ 105 ​ ​ 282 Total asset impairment $ 286 ​ $ 472

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Oct. 31, 2020
Revenue
Schedule of revenue from contracts with customers disaggregated by major product line	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirty-Nine Weeks Ended ​ Thirteen Weeks Ended ​ ​ October 31, November 2, October 31, November 2, ​ 2020 2019 2020 2019 Accessories 31 % ​ 33 % ​ 30 % ​ 33 % ​ Ladies' 22 % ​ 23 % ​ 20 % ​ 21 % ​ Children's 22 % ​ 22 % ​ 24 % ​ 24 % ​ Men's 17 % ​ 16 % ​ 18 % ​ 16 % ​ Home 8 % ​ 6 % ​ 8 % ​ 6 % ​

Leases (Tables)

Leases (Tables)	9 Months Ended
	Oct. 31, 2020
Leases
Schedule of lease expense	Lease costs consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirty-Nine Weeks Ended ​ ​ October 31, 2020 ​ November 2, 2019 Operating lease cost $ 36,918 ​ $ 36,137 Variable lease cost ​ 6,458 ​ 6,164 Short term lease cost ​ 1,172 ​ 791 Total lease cost ​ $ 44,548 ​ $ 43,092
Schedule of future minimum rent payments under operating leases	​ ​ ​ ​ ​ ​ Fiscal Year Lease Costs Remainder of 2020 $ 12,651 ​ 2021 ​ ​ 52,070 ​ 2022 ​ 43,452 ​ 2023 ​ 35,672 ​ 2024 ​ 27,363 ​ Thereafter ​ 42,789 ​ Total future minimum lease payments ​ ​ 213,997 ​ Less: imputed interest ​ ​ (17,255) (1) Total present value of lease liabilities ​ $ 196,742 (2) ​ (1) Calculated using the incremental borrowing rate for each lease. (2) Includes short-term and long-term operating leases.
Schedule of supplemental cash flow and other information	Supplemental cash flows and other information related to operating leases are as follows (in thousands, except for weighted average amounts): ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirty-Nine Weeks Ended ​ ​ October 31, 2020 ​ November 2, 2019 Cash paid for operating leases $ 32,870 ​ $ 37,379 Right of use assets obtained in exchange for new operating lease liabilities ​ $ 50,926 ​ $ 55,285 ​ ​ ​ ​ ​ Weighted average remaining lease term (years) - operating leases ​ 5.24 ​ 4.67 Weighted average discount rate - operating leases ​ ​ 3.16% ​ ​ 3.59%

Significant Accounting Polici_2

Significant Accounting Policies (Details)	12 Months Ended
	Jan. 30, 2021	Feb. 01, 2020	Oct. 31, 2020storestate
Significant Accounting Policies
Number of stores operated | store			585
Number of states in which company operates | state			33
Length of fiscal year	364 days	364 days

Impact of the COVID-19 Pandem_2

Impact of the COVID-19 Pandemic (Details) $ in Millions	3 Months Ended	9 Months Ended
	Aug. 01, 2020USD ($)	Oct. 31, 2020USD ($)installment	Jan. 30, 2021USD ($)	Mar. 20, 2020USD ($)
Impact of the COVID-19 Pandemic
Deferred payment of amounts due for employer portion of social security tax deposits		$ 3.5	$ 1.2
Number of installments to pay for deferred payment of amounts due for the employer portion of social security tax deposits | installment		2
Employee retention credit due to Covid-19	$ 1.5
Line of Credit
Impact of the COVID-19 Pandemic
Borrowings outstanding				$ 43.7

Earnings per Share (Details)

Earnings per Share (Details) - shares	3 Months Ended		9 Months Ended
	Oct. 31, 2020	Nov. 02, 2019	Oct. 31, 2020	Nov. 02, 2019
Reconciliation of average number of common shares outstanding used to calculate basic and diluted earnings per share
Weighted average number of common shares outstanding	10,364,842	11,635,707	10,419,557	11,831,248
Incremental shares from assumed vesting of nonvested restricted stock	36,311		24,549	10,497
Weighted average number of common shares and common stock equivalents outstanding	10,401,153	11,635,707	10,444,106	11,841,745
Restricted Stock
Antidilutive securities
Shares excluded from the calculation of diluted earnings per share	134,000	147,000	150,000	139,000

Impairment of Assets (Details)

Impairment of Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2020	Nov. 02, 2019
Impairment of Assets
Operating lease right-of-use asset impairment	$ 181	$ 190
Store asset impairment	105	282
Total asset impairment	$ 286	$ 472

Revolving Credit Facility (Deta

Revolving Credit Facility (Details) $ in Thousands	May 12, 2020	Mar. 20, 2020USD ($)	Aug. 18, 2015USD ($)bbl / agreement	Oct. 27, 2011USD ($)	Aug. 01, 2020USD ($)	Oct. 31, 2020USD ($)
Revolving Line of Credit
Borrowings under revolving credit facility						$ 43,700
Debt repaid					$ 2,100
Line of Credit
Revolving Line of Credit
Term of credit facility				5 years
Maximum borrowing capacity			$ 50,000	$ 50,000
Borrowings under revolving credit facility		$ 43,700
Borrowing capacity, accordion feature			25,000
Maximum borrowing capacity including accordion expansion			$ 75,000
Number of covenants | bbl / agreement			1
Unused commitment fee (as a percent)			0.25%
Line of Credit | Minimum
Revolving Line of Credit
Effective interest rate (as a percent)		1.625%
Line of Credit | Maximum
Revolving Line of Credit
Effective interest rate (as a percent)		3.50%
Line of Credit | LIBOR | Minimum
Revolving Line of Credit
Margin added to variable rate (as a percent)			2.25%
Line of Credit | LIBOR | Maximum
Revolving Line of Credit
Margin added to variable rate (as a percent)			2.50%
Line of Credit | Federal Fund Rate | Minimum
Revolving Line of Credit
Margin added to variable rate (as a percent)			0.50%
Line of Credit | LIBOR, One Month
Revolving Line of Credit
Increase pricing for loans (as a percent)	1.00%
Line of Credit | LIBOR, One Month | Minimum
Revolving Line of Credit
Margin added to variable rate (as a percent)	1.25%
Line of Credit | LIBOR, One Month | Maximum
Revolving Line of Credit
Margin added to variable rate (as a percent)	1.50%

Income Taxes (Details)

Income Taxes (Details)	9 Months Ended
	Oct. 31, 2020	Nov. 02, 2019
Income Taxes
Effective income tax rate	23.20%	15.60%

Stock Repurchase Program and _2

Stock Repurchase Program and Cash Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands	Mar. 13, 2020	Feb. 18, 2020	Oct. 31, 2020	May 02, 2020	Nov. 02, 2019	Aug. 03, 2019	May 04, 2019	Oct. 31, 2020	Nov. 02, 2019	Nov. 30, 2019	Nov. 28, 2018
Stockholders' Equity
Stock Repurchase Program, Authorized Amount	$ 30,000
Stock Repurchased During Period, Value			$ 9,888	$ 6,254	$ 5,123	$ 2,904	$ 1,640
Cash dividends declared per share		$ 0.08
Stock Repurchase Program
Stockholders' Equity
Stock Repurchase Program, Authorized Amount										$ 25,000	$ 25,000
Stock Repurchased During Period, Shares	375,803							260,254	82,312
Stock Repurchased During Period, Value	$ 9,900							$ 6,300
Treasury Stock, Value, Acquired, Cost Method									$ 1,600

Revenue (Details)

Revenue (Details)	3 Months Ended		9 Months Ended
	Oct. 31, 2020	Nov. 02, 2019	Oct. 31, 2020	Nov. 02, 2019
Revenue, initial application period, cumulative effect transition
Period of time company allows customers to return merchandise			30 days
Accessories
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	30.00%	33.00%	31.00%	33.00%
Ladies'
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	20.00%	21.00%	22.00%	23.00%
Children's
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	24.00%	24.00%	22.00%	22.00%
Men's
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	18.00%	16.00%	17.00%	16.00%
Home
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	8.00%	6.00%	8.00%	6.00%

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2020	Nov. 02, 2019
Leases
Lease term	5 years
Operating lease cost	$ 36,918	$ 36,137
Variable lease cost	6,458	6,164
Short term lease cost	1,172	791
Total lease cost	$ 44,548	$ 43,092
Minimum
Leases
Extension term	1 year
Maximum
Leases
Extension term	5 years

Leases - COVID-19 Impacts (Deta

Leases - COVID-19 Impacts (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Oct. 31, 2020	Oct. 31, 2020
Leases
Rent abatements due to the number of leases renegotiated in response to the negative financial impacts of COVID-19	$ 0.2	$ 0.8

Leases - Future Minimum Lease P

Leases - Future Minimum Lease Payments (Details) $ in Thousands	Oct. 31, 2020USD ($)
Future minimum lease payments under operating leases
Remainder of 2020	$ 12,651
2021	52,070
2022	43,452
2023	35,672
2024	27,363
Thereafter	42,789
Total future minimum lease payments	213,997
Less: imputed interest	(17,255)
Total present value of lease liabilities	$ 196,742

Leases - Cash flow and other in

Leases - Cash flow and other information (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2020	Nov. 02, 2019
Supplemental cash flow and other information related to operating leases
Cash paid for operating leases	$ 32,870	$ 37,379
Right of use assets obtained in exchange for new operating lease liabilities	$ 50,926	$ 55,285
Weighted average remaining lease term - operating leases	5 years 2 months 26 days	4 years 8 months 1 day
Weighted average discount rate - operating leases (as a percent)	3.16%	3.59%