Citi Trends (CTRN) 10-Q 8 Sep 21 2021 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 31, 2021	Aug. 16, 2021
Document and Entity Information
Document Type	10-Q
Document Period End Date	Jul. 31, 2021
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	000-51315
Entity Registrant Name	CITI TRENDS, INC.
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		9,076,697
Current Fiscal Year End Date	--01-29
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001318484
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 31, 2021	Jan. 30, 2021
Current assets:
Cash and cash equivalents	$ 76,751	$ 123,177
Short-term investment securities	24,603
Inventory	113,186	103,845
Prepaid and other current assets	19,144	17,420
Total current assets	233,684	244,442
Property and equipment, net of accumulated depreciation of $281,874 and $279,080 as of July 31, 2021 and January 30, 2021, respectively	66,524	63,514
Operating lease right of use assets	190,503	179,673
Deferred income taxes	4,086	6,195
Other assets	1,414	769
Total assets	496,211	494,593
Current liabilities:
Accounts payable	99,177	84,832
Operating lease liabilities	47,145	46,983
Accrued expenses	19,318	16,592
Accrued compensation	24,481	29,315
Income tax payable	3,642	4,623
Layaway deposits	1,133	500
Total current liabilities	194,896	182,845
Noncurrent operating lease liabilities	156,592	145,828
Other long-term liabilities	2,349	2,286
Total liabilities	353,837	330,959
Stockholders' equity:
Common stock, $0.01 par value. Authorized 32,000,000 shares; 15,971,349 shares issued as of July 31, 2021 and 15,981,394 shares issued as of January 30, 2021; 9,114,599 shares outstanding as of July 31, 2021 and 9,876,901 shares outstanding as of January 30, 2021	158	158
Paid in capital	95,214	95,484
Retained earnings	253,305	209,918
Treasury stock, at cost; 6,856,750 shares held as of July 31, 2021 and 6,104,493 shares held as of January 30, 2021	(206,303)	(141,926)
Total stockholders' equity	142,374	163,634
Commitments and contingencies (note 9)
Total liabilities and stockholders' equity	$ 496,211	$ 494,593

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Jul. 31, 2021	Jan. 30, 2021
Condensed Consolidated Balance Sheets
Accumulated depreciation	$ 281,874	$ 279,080
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	15,971,349	15,981,394
Common stock, shares outstanding	9,114,599	9,876,901
Treasury stock, shares	6,856,750	6,104,493

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2021	Aug. 01, 2020	Jul. 31, 2021	Aug. 01, 2020
Consolidated Statements of Operations
Net sales	$ 237,281	$ 216,151	$ 522,662	$ 332,275
Revenue, Product and Service [Extensible List]	Net sales	Net sales	Net sales	Net sales
Cost of sales (exclusive of depreciation)	$ (140,542)	$ (127,147)	$ (304,333)	$ (211,517)
Selling, general and administrative expenses	(75,383)	(57,623)	(153,275)	(111,699)
Depreciation	(4,994)	(4,933)	(9,691)	(9,879)
Asset impairment			0	(286)
Income (loss) from operations	16,362	26,448	55,363	(1,106)
Interest income	2	14	6	231
Interest expense	(77)	(377)	(124)	(540)
Income (loss) before income taxes	16,287	26,085	55,245	(1,415)
Income tax (provision) benefit	(3,797)	(6,218)	(11,858)	390
Net income (loss)	$ 12,490	$ 19,867	$ 43,387	$ (1,025)
Basic net income (loss) per common share	$ 1.37	$ 1.90	$ 4.68	$ (0.10)
Diluted net income (loss) per common share	$ 1.36	$ 1.90	$ 4.63	$ (0.10)
Weighted average number of shares outstanding
Basic	9,087,709	10,451,194	9,268,751	10,446,915
Diluted	9,177,972	10,458,036	9,374,404	10,446,915

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jul. 31, 2021	Aug. 01, 2020
Operating activities:
Net income (loss)	$ 43,387	$ (1,025)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	9,691	9,879
Non-cash operating lease costs	24,582	23,829
Asset impairment	0	286
Loss on disposal of property and equipment	76	5
Deferred income taxes	2,109	(565)
Insurance proceeds related to operating activities	454
Non-cash stock-based compensation expense	1,901	1,005
Changes in assets and liabilities:
Inventory	(9,733)	43,713
Prepaid and other current assets	(1,786)	(6,729)
Other assets	(375)	(8)
Accounts payable	14,260	(2,239)
Accrued expenses and other long-term liabilities	(22,578)	(13,181)
Accrued compensation	(4,834)	122
Income tax (receivable) payable	(981)	131
Layaway deposits	633	170
Net cash provided by operating activities	56,806	55,393
Investing activities:
Sales/redemptions of investment securities		43,754
Purchases of investment securities	(24,603)	(522)
Purchases of property and equipment	(12,003)	(5,839)
Insurance proceeds related to investing activities	192
Net cash (used in) provided by investing activities	(36,414)	37,393
Financing activities:
Borrowings under revolving credit facility	0	43,700
Repayments of revolving credit facility		(2,100)
Payments of debt issuance costs	(270)
Cash used to settle withholding taxes on the vesting of nonvested restricted stock	(2,171)	(483)
Dividends paid to stockholders		(831)
Repurchases of common stock	(64,377)	(6,254)
Net cash (used in) provided by financing activities	(66,818)	34,032
Net (decrease) increase in cash and cash equivalents	(46,426)	126,818
Cash and cash equivalents:
Beginning of period	123,177	19,923
End of period	76,751	146,741
Supplemental disclosures of cash flow information:
Cash paid for interest	70	424
Cash payments of income taxes	10,730	44
Supplemental disclosures of non-cash investing activities:
Accrual for purchases of property and equipment	$ 966	$ 1,088

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Paid in Capital	Retained Earnings	Treasury Stock	Total
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
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		(479)			(479)
Net share settlement of nonvested shares (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
Increase (Decrease) in Stockholders' Equity
Net income (loss)					(1,025)
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
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
Vesting of nonvested restricted stock units (in shares)	17,808
Stock-based compensation expense		536			536
Net share settlement of nonvested shares		(4)			(4)
Net share settlement of nonvested shares (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
Balances at Jan. 30, 2021	$ 158	95,484	209,918	$ (141,926)	$ 163,634
Balances (in shares) at Jan. 30, 2021	15,981,394			6,104,493	15,981,394
Increase (Decrease) in Stockholders' Equity
Issuance of nonvested shares under incentive plan (in shares)	17,278
Forfeiture of nonvested shares (in shares)	(3,005)
Stock-based compensation expense		1,087			$ 1,087
Net share settlement of nonvested shares		(2,155)			(2,155)
Net share settlement of nonvested shares (in shares)	(22,666)
Repurchase of common stock				$ (45,470)	(45,470)
Repurchase of common stock (in shares)				537,496
Net income (loss)			30,897		30,897
Balances at May. 01, 2021	$ 158	94,416	240,815	$ (187,396)	147,993
Balances (in shares) at May. 01, 2021	15,973,001			6,641,989
Balances at Jan. 30, 2021	$ 158	95,484	209,918	$ (141,926)	$ 163,634
Balances (in shares) at Jan. 30, 2021	15,981,394			6,104,493	15,981,394
Increase (Decrease) in Stockholders' Equity
Net income (loss)					$ 43,387
Balances at Jul. 31, 2021	$ 158	95,214	253,305	$ (206,303)	$ 142,374
Balances (in shares) at Jul. 31, 2021	15,971,349			6,856,750	15,971,349
Balances at May. 01, 2021	$ 158	94,416	240,815	$ (187,396)	$ 147,993
Balances (in shares) at May. 01, 2021	15,973,001			6,641,989
Increase (Decrease) in Stockholders' Equity
Issuance of nonvested shares under incentive plan (in shares)	4,680
Forfeiture of nonvested shares (in shares)	(6,161)
Stock-based compensation expense		814			814
Net share settlement of nonvested shares		(16)			(16)
Net share settlement of nonvested shares (in shares)	(171)
Repurchase of common stock				$ (18,907)	(18,907)
Repurchase of common stock (in shares)				214,761
Net income (loss)			12,490		12,490
Balances at Jul. 31, 2021	$ 158	$ 95,214	$ 253,305	$ (206,303)	$ 142,374
Balances (in shares) at Jul. 31, 2021	15,971,349			6,856,750	15,971,349

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders' Equity (Parenthetical)	6 Months Ended
	Aug. 01, 2020$ / shares
Consolidated Statements of Stockholders' Equity
Dividends paid to stockholders	$ 0.08

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
	Jul. 31, 2021
Significant Accounting Policies
Significant Accounting Policies	1. Significant Accounting Policies ​ Basis of Presentation Citi Trends, Inc. and its subsidiary (the “Company”) is a growing specialty value retailer of apparel, accessories and home trends primarily for African American and Latinx families. As of July 31, 2021, the Company operated 589 stores in urban, suburban and rural markets in 33 states. ​ 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 January 30, 2021 is derived from the audited financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended January 30, 2021 (the “2020 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 2020 Form 10-K. Operating results for the second quarter of 2021 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 current uncertainty surrounding the economic impact of the novel coronavirus (“COVID-19”) pandemic and the duration and extent of any economic stimulus programs. ​ Fiscal Year The following contains references to fiscal years 2021 and 2020, which represent fiscal years ending or ended on January 29, 2022 and January 30, 2021, respectively. Fiscal 2021 and 2020 both have 52 -week accounting periods. ​

COVID-19 Update

COVID-19 Update	6 Months Ended
	Jul. 31, 2021
COVID-19
COVID-19 Update
COVID-19 Update	2. COVID-19 Pandemic ​ In March 2020, the World Health Organization declared the spread of the coronavirus (“COVID-19”) a global pandemic. ​ The pandemic has resulted in periods of disruption for the Company, including the temporary closure of stores and limited store operating hours, reduced customer traffic and consumer spending, and delays in the manufacturing and shipping of products. The Company saw improvement in its financial results and positive trends during the latter half of 2020 and into the first half of 2021 as certain governments began to ease restrictions and provide economic stimulus and vaccine distribution accelerated, leading to an increase in spending and increased customer demand. ​ The Company expects continued uncertainty in its business and the global economy due to the COVID-19 pandemic, including potential volatility in employment trends and consumer confidence, current or future restrictive actions that may be imposed by governments or public health authorities, the duration and extent of any economic stimulus programs, supply chain interruptions, increased distribution and transportation costs, increased payroll expenses, and increased costs to maintain safe work and shopping environments. The impacts of the pandemic have had, and may continue to have, an adverse impact on the Company’s financial condition, results of operations and liquidity. The Company will continue to monitor the effects of COVID-19 and take the necessary actions to serve our associates, customers, communities and shareholders. ​

Cash and Cash Equivalents_Conce

Cash and Cash Equivalents/Concentration of Credit Risk	6 Months Ended
	Jul. 31, 2021
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	6 Months Ended
	Jul. 31, 2021
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 thirteen weeks ended July 31, 2021 and August 1, 2020, there were 39,000 and 165,000 shares of nonvested restricted stock, respectively, excluded from the calculation of diluted earnings per share because of antidilution. For the twenty-six weeks ended July 31, 2021 and August 1, 2020, there were 38,000 and 173,000 shares of nonvested restricted stock, respectively, excluded from the calculation of diluted earnings per share because of antidilution. ​ 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: ​ ​ ​ ​ ​ ​ ​ ​ Thirteen Weeks Ended ​ July 31, 2021 August 1, 2020 Weighted average number of common shares outstanding ​ 9,087,709 ​ 10,451,194 Incremental shares from assumed vesting of nonvested restricted stock ​ 90,263 ​ 6,842 Weighted average number of common shares and common stock equivalents outstanding ​ 9,177,972 ​ 10,458,036 ​ ​ ​ ​ ​ ​ ​ ​ ​ Twenty-Six Weeks Ended ​ July 31, 2021 August 1, 2020 Weighted average number of common shares outstanding ​ 9,268,751 ​ 10,446,915 Incremental shares from assumed vesting of nonvested restricted stock ​ 105,653 ​ — Weighted average number of common shares and common stock equivalents outstanding ​ 9,374,404 ​ 10,446,915 ​

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jul. 31, 2021
Fair Value Measurements
Fair Value Measurements	5. Fair Value Measurement ​ 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 July 31, 2021, 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate debt securities (Level 2) ​ $ 17,746 ​ $ — ​ $ (20) ​ $ 17,726 ​ Obligations of states and municipalities (Level 2) ​ ​ 6,857 ​ ​ — ​ ​ (2) ​ ​ 6,855 ​ ​ ​ $ 24,603 ​ $ — ​ $ (22) ​ $ 24,581 ​ ​ The amortized cost and fair market value of investment securities as of July 31, 2021 by contractual maturity are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair ​ ​ Amortized ​ Market ​ Cost Value Mature in one year or less ​ $ 24,603 ​ $ 24,581 ​ ​

Impairment of Assets

Impairment of Assets	6 Months Ended
	Jul. 31, 2021
Impairment of Assets
Impairment of Assets	6. 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. There was no impairment expense recorded in the first half of 2021. In the first half of 2020, non-cash impairment charges related to an underperforming store totaled $0.3 million, comprised of $0.2 million for an operating lease right-of-use asset and $0.1 million for leasehold improvements and fixtures and equipment. ​ ​

Revolving Credit Facility

Revolving Credit Facility	6 Months Ended
	Jul. 31, 2021
Revolving Credit Facility
Revolving Credit Facility	7. Revolving Credit Facility ​ In October 2011, the Company entered into a five-year , $50 million credit facility with Bank of America. The facility was amended in August 2015 and May 2020 to extend the maturity dates. The facility was further amended on April 15, 2021 to modify terms and extend the maturity date to April 15, 2026. The amended facility provides a $75 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 $100 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 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 0.20% and permits the payment of cash dividends subject to certain limitations. Borrowings under the credit facility bear interest (a) for Eurodollar Loans, at a rate equal to the Eurodollar Rate plus either 1.25% , 1.50% or 1.75% , or (b) for Base Rate Loans, at a rate equal to the highest of (i) the prime rate, (ii) the Federal Funds Rate plus 0.5% or (iii) the Eurodollar Rate plus 1.0% , plus, in each case either 0.25% , 0.50% or 0.75% , based in any such case on the average daily availability for borrowings under the facility. The Company had no borrowings under the credit facility as of July 31, 2021.

Income Taxes

Income Taxes	6 Months Ended
	Jul. 31, 2021
Income Taxes
Income Taxes	8. 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. If there is a change in tax rates, the Company would recognize the impact of such change in income in the period that includes the enactment date. ​ For the first half of 2021, the Company utilized the annual effective tax rate method to calculate income taxes. For the first half of 2020, the Company utilized the discrete effective tax rate method based on the determination that the full-year tax rate was not reliably predictable. The tax rate was 21.5% for the first half of 2021, compared to 27.6% (benefit) for the first half of 2020. The difference in the tax rate was primarily due to pretax income in the current year compared to a pretax loss in the same period of 2020. ​

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jul. 31, 2021
Commitments and Contingencies
Commitments and Contingencies	9. 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, the Company 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 Repurchases

Stock Repurchases	6 Months Ended
	Jul. 31, 2021
Stock Repurchases
Stock Repurchases	10. Stock Repurchases ​ Repurchases of Common Stock In November 2019, the Company’s board of directors approved a stock repurchase program that authorized the repurchase of up to $25 million of the Company’s common stock. In the first quarter of 2020, the Company repurchased 260,254 shares of its common stock at an aggregate cost of $6.3 million. ​ In March 2020, the Company’s board of directors approved another $30 million stock repurchase program. Shortly thereafter, due to the economic uncertainty stemming from the COVID-19 pandemic, the Company suspended its stock repurchase program until September 2020 when the program was reinstated. In December 2020, the Company announced that its board of directors approved an additional $30 million stock repurchase program. In June 2021, the Company announced that its board of directors authorized another $30 million stock repurchase program. ​ In the first half of 2021, the Company repurchased 502,257 shares of its common stock under its repurchase programs at an aggregate cost of $42.5 million. In addition, the Company completed a block repurchase of 250,000 shares of its common stock at an aggregate cost of $21.9 million. ​ As of July 31, 2021, the Company had approximately $20.9 million available under its previously announced stock repurchase program. On August 24, 2021, the Company announced that its board of directors authorized another $30 million stock repurchase program.

Revenue

Revenue	6 Months Ended
	Jul. 31, 2021
Revenue
Revenue	11. Revenue ​ Revenue Recognition The Company’s primary source of revenue is derived from the sale of apparel, accessories and home trends 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 is disaggregated by “CITI” or major merchandise category. The percentage of net sales for each CITI within the merchandise assortment was approximately: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirteen Weeks Ended ​ Twenty-Six Weeks Ended ​ ​ July 31, August 1, July 31, August 1, ​ ​ 2021 2020 2021 2020 ​ Women 28 % ​ 27 % ​ 29 % ​ 28 % ​ Kids 20 % ​ 21 % ​ 20 % ​ 22 % ​ Men 18 % ​ 19 % ​ 18 % ​ 17 % ​ Beauty & Accessories 18 % ​ 15 % ​ 17 % ​ 15 % ​ Home & Lifestyle 8 % ​ 9 % ​ 8 % ​ 8 % ​ Footwear 8 % ​ 9 % ​ 8 % ​ 10 % ​ ​

Leases

Leases	6 Months Ended
	Jul. 31, 2021
Leases
Leases	12. Leases ​ The Company leases its retail store locations and certain office space and equipment. Leases for store locations are typically for a term of five years with options to extend for one or more five-year periods. The Company analyzes all leases at inception to determine if a right-of-use asset and lease liability should be recognized. Leases with an initial term of 12 months or less and leases with mutual termination clauses are not included on the condensed consolidated balance sheets. The lease liability is measured at the present value of future lease payments as of the lease commencement date. ​ 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. Lease costs consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirteen Weeks Ended ​ Twenty-Six Weeks Ended ​ ​ July 31, 2021 ​ August 1, 2020 ​ July 31, 2021 ​ August 1, 2020 Operating lease cost ​ $ 13,111 ​ $ 11,912 ​ $ 26,065 ​ $ 24,465 Variable lease cost ​ 2,598 ​ 2,332 ​ 5,579 ​ 4,125 Short term lease cost ​ 246 ​ 453 ​ 561 ​ 817 Total lease cost ​ $ 15,955 ​ $ 14,697 ​ $ 32,205 ​ $ 29,407 ​ In response to the impact of the COVID-19 pandemic on the Company’s operations, the Company suspended certain lease payments in 2020 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 continues to engage in discussions with landlords regarding the potential restructuring of lease payments and rent concessions. As of July 31, 2021 , the Company negotiated contractual rent concessions on many leases in the form of early renewals, rent deferrals and rent abatements. The Company 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 $0.1 million and $0.6 million during the second quarter of 2021 and 2020, respectively. ​ Future minimum lease payments as of July 31, 2021 are as follows (in thousands): ​ ​ ​ ​ ​ ​ Fiscal Year Lease Costs Remainder of 2021 $ 25,561 ​ 2022 ​ ​ 51,595 ​ 2023 ​ 43,846 ​ 2024 ​ 35,397 ​ 2025 ​ 25,183 ​ Thereafter ​ 39,085 ​ Total future minimum lease payments ​ ​ 220,667 ​ Less: imputed interest ​ ​ (16,930) (1) Total present value of lease liabilities ​ $ 203,737 (2) ​ (1) Calculated using the discount rate for each lease. (2) Includes short-term and long-term portions of operating lease liabilities. ​ 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): ​ ​ ​ ​ ​ ​ ​ ​ ​ Twenty-Six Weeks Ended ​ ​ July 31, 2021 ​ August 1, 2020 Cash paid for operating leases $ 27,618 ​ $ 18,920 Right of use assets obtained in exchange for new operating lease liabilities ​ $ 36,247 ​ $ 27,044 ​ ​ ​ ​ ​ Weighted average remaining lease term (years) - operating leases ​ 5.18 ​ 5.28 Weighted average discount rate - operating leases ​ ​ 2.99% ​ ​ 3.29% ​

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	6 Months Ended
	Jul. 31, 2021
Significant Accounting Policies
Basis of Presentation	Basis of Presentation Citi Trends, Inc. and its subsidiary (the “Company”) is a growing specialty value retailer of apparel, accessories and home trends primarily for African American and Latinx families. As of July 31, 2021, the Company operated 589 stores in urban, suburban and rural markets in 33 states. ​ 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 January 30, 2021 is derived from the audited financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended January 30, 2021 (the “2020 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 2020 Form 10-K. Operating results for the second quarter of 2021 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 current uncertainty surrounding the economic impact of the novel coronavirus (“COVID-19”) pandemic and the duration and extent of any economic stimulus programs.
Fiscal Year	Fiscal Year The following contains references to fiscal years 2021 and 2020, which represent fiscal years ending or ended on January 29, 2022 and January 30, 2021, respectively. Fiscal 2021 and 2020 both have 52 -week accounting periods.

Earnings per Share (Tables)

Earnings per Share (Tables)	6 Months Ended
	Jul. 31, 2021
Earnings per Share
Schedule of reconciliation of the number of average common shares outstanding used to calculate basic and diluted earnings per share	​ ​ ​ ​ ​ ​ ​ ​ Thirteen Weeks Ended ​ July 31, 2021 August 1, 2020 Weighted average number of common shares outstanding ​ 9,087,709 ​ 10,451,194 Incremental shares from assumed vesting of nonvested restricted stock ​ 90,263 ​ 6,842 Weighted average number of common shares and common stock equivalents outstanding ​ 9,177,972 ​ 10,458,036 ​ ​ ​ ​ ​ ​ ​ ​ ​ Twenty-Six Weeks Ended ​ July 31, 2021 August 1, 2020 Weighted average number of common shares outstanding ​ 9,268,751 ​ 10,446,915 Incremental shares from assumed vesting of nonvested restricted stock ​ 105,653 ​ — Weighted average number of common shares and common stock equivalents outstanding ​ 9,374,404 ​ 10,446,915

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	6 Months Ended
	Jul. 31, 2021
Fair Value Measurements
Schedule of investment securities classified as held-to-maturity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Gross ​ ​ ​ ​ Amortized ​ Unrealized ​ Unrealized ​ Fair Market ​ Cost Gains Losses Value Short-term: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate debt securities (Level 2) ​ $ 17,746 ​ $ — ​ $ (20) ​ $ 17,726 ​ Obligations of states and municipalities (Level 2) ​ ​ 6,857 ​ ​ — ​ ​ (2) ​ ​ 6,855 ​ ​ ​ $ 24,603 ​ $ — ​ $ (22) ​ $ 24,581 ​
Schedule of amortized cost and fair market value of investment securities by contractual maturity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fair ​ ​ Amortized ​ Market ​ Cost Value Mature in one year or less ​ $ 24,603 ​ $ 24,581 ​

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jul. 31, 2021
Revenue
Schedule of revenue from contracts with customers disaggregated by major product line	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirteen Weeks Ended ​ Twenty-Six Weeks Ended ​ ​ July 31, August 1, July 31, August 1, ​ ​ 2021 2020 2021 2020 ​ Women 28 % ​ 27 % ​ 29 % ​ 28 % ​ Kids 20 % ​ 21 % ​ 20 % ​ 22 % ​ Men 18 % ​ 19 % ​ 18 % ​ 17 % ​ Beauty & Accessories 18 % ​ 15 % ​ 17 % ​ 15 % ​ Home & Lifestyle 8 % ​ 9 % ​ 8 % ​ 8 % ​ Footwear 8 % ​ 9 % ​ 8 % ​ 10 % ​

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jul. 31, 2021
Leases
Schedule of lease expense	Lease costs consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirteen Weeks Ended ​ Twenty-Six Weeks Ended ​ ​ July 31, 2021 ​ August 1, 2020 ​ July 31, 2021 ​ August 1, 2020 Operating lease cost ​ $ 13,111 ​ $ 11,912 ​ $ 26,065 ​ $ 24,465 Variable lease cost ​ 2,598 ​ 2,332 ​ 5,579 ​ 4,125 Short term lease cost ​ 246 ​ 453 ​ 561 ​ 817 Total lease cost ​ $ 15,955 ​ $ 14,697 ​ $ 32,205 ​ $ 29,407
Schedule of future minimum rent payments under operating leases	​ ​ ​ ​ ​ Fiscal Year Lease Costs Remainder of 2021 $ 25,561 ​ 2022 ​ ​ 51,595 ​ 2023 ​ 43,846 ​ 2024 ​ 35,397 ​ 2025 ​ 25,183 ​ Thereafter ​ 39,085 ​ Total future minimum lease payments ​ ​ 220,667 ​ Less: imputed interest ​ ​ (16,930) (1) Total present value of lease liabilities ​ $ 203,737 (2) ​ (1) Calculated using the discount rate for each lease. (2) Includes short-term and long-term portions of operating lease liabilities.
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): ​ ​ ​ ​ ​ ​ ​ ​ Twenty-Six Weeks Ended ​ ​ July 31, 2021 ​ August 1, 2020 Cash paid for operating leases $ 27,618 ​ $ 18,920 Right of use assets obtained in exchange for new operating lease liabilities ​ $ 36,247 ​ $ 27,044 ​ ​ ​ ​ ​ Weighted average remaining lease term (years) - operating leases ​ 5.18 ​ 5.28 Weighted average discount rate - operating leases ​ ​ 2.99% ​ ​ 3.29%

Significant Accounting Polici_3

Significant Accounting Policies (Details)	12 Months Ended
	Jan. 29, 2022	Jan. 30, 2021	Jul. 31, 2021storestate
Significant Accounting Policies
Number of stores operated | store			589
Number of states in which company operates | state			33
Length of fiscal year	364 days	364 days

Earnings per Share (Details)

Earnings per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jul. 31, 2021	Aug. 01, 2020	Jul. 31, 2021	Aug. 01, 2020
Reconciliation of average number of common shares outstanding used to calculate basic and diluted earnings per share
Weighted average number of common shares outstanding	9,087,709	10,451,194	9,268,751	10,446,915
Incremental shares from assumed vesting of nonvested restricted stock	90,263	6,842	105,653
Weighted average number of common shares and common stock equivalents outstanding	9,177,972	10,458,036	9,374,404	10,446,915
Restricted Stock
Antidilutive securities
Shares excluded from the calculation of diluted earnings per share	39,000	165,000	38,000	173,000

Fair Value Measurement - Securi

Fair Value Measurement - Securities Carried at Amortized Cost Plus Accrued Interest (Details) $ in Thousands	Jul. 31, 2021USD ($)
Investment securities classified as held to maturity
Amortized Cost	$ 24,603
Gross Unrealized Losses	(22)
Fair Market Value	24,581
Corporate debt securities | Fair Value, Inputs, Level 2
Investment securities classified as held to maturity
Amortized Cost	17,746
Gross Unrealized Losses	(20)
Fair Market Value	17,726
Obligations of states and municipalities | Fair Value, Inputs, Level 2
Investment securities classified as held to maturity
Amortized Cost	6,857
Gross Unrealized Losses	(2)
Fair Market Value	$ 6,855

Fair Value Measurement - Amorti

Fair Value Measurement - Amortized Cost and Fair Market Value of Securities by Contractual Maturity (Details) $ in Thousands	Jul. 31, 2021USD ($)
Amortized Cost
Mature in one year or less	$ 24,603
Total	24,603
Fair Market Value
Mature in one year or less	24,581
Fair Market Value	$ 24,581

Impairment of Assets (Details)

Impairment of Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 31, 2021	Aug. 01, 2020
Impairment of Assets
Operating lease right-of-use asset impairment		$ 200
Store asset impairment		300
Asset impairment	$ 0	286
Leasehold improvements and fixtures and equipment impairment		$ 100

Revolving Credit Facility (Deta

Revolving Credit Facility (Details) $ in Thousands	Apr. 15, 2021USD ($)bbl / agreement	Oct. 27, 2011USD ($)	Jul. 31, 2021USD ($)	Aug. 01, 2020USD ($)
Revolving Line of Credit
Borrowings under revolving credit facility			$ 0	$ 43,700
Line of Credit
Revolving Line of Credit
Term of credit facility		5 years
Maximum borrowing capacity	$ 75,000	$ 50,000
Borrowing capacity, accordion feature	25,000
Maximum borrowing capacity including accordion expansion	$ 100,000
Number of covenants | bbl / agreement	1
Unused commitment fee (as a percent)	0.20%
Line of Credit | Eurodollar Rate
Revolving Line of Credit
Increase pricing for loans (as a percent)	1.00%
Line of Credit | Federal Funds Rate
Revolving Line of Credit
Margin added to variable rate (as a percent)	0.50%
First interest rate | Line of Credit | Eurodollar Rate
Revolving Line of Credit
Margin added to variable rate (as a percent)	1.25%
First interest rate | Line of Credit | Federal Funds or Eurodollar Rate
Revolving Line of Credit
Margin added to variable rate (as a percent)	0.25%
Second interest rate | Line of Credit | Eurodollar Rate
Revolving Line of Credit
Margin added to variable rate (as a percent)	1.50%
Second interest rate | Line of Credit | Federal Funds or Eurodollar Rate
Revolving Line of Credit
Margin added to variable rate (as a percent)	0.50%
Third interest rate | Line of Credit | Eurodollar Rate
Revolving Line of Credit
Margin added to variable rate (as a percent)	1.75%
Third interest rate | Line of Credit | Federal Funds or Eurodollar Rate
Revolving Line of Credit
Margin added to variable rate (as a percent)	0.75%

Income Taxes (Details)

Income Taxes (Details)	6 Months Ended
	Jul. 31, 2021	Aug. 01, 2020
Income Taxes
Effective income tax rate	21.50%	27.60%

Stock Repurchases (Details)

Stock Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			6 Months Ended
	Jul. 31, 2021	May 01, 2021	May 02, 2020	Jul. 31, 2021	Aug. 01, 2020	Aug. 24, 2021	Jun. 30, 2021	Dec. 31, 2020	Mar. 31, 2020	Nov. 30, 2019
Stockholders' Equity
Stock Repurchased During Period, Value	$ 18,907	$ 45,470	$ 6,254
Dividends paid to stockholders					$ 0.08
Remaining value of shares available for repurchase	$ 20,900			$ 20,900
2019 repurchases of common stock
Stockholders' Equity
Stock Repurchase Program, Authorized Amount										$ 25,000
Stock Repurchased During Period, Shares			260,254
Stock Repurchased During Period, Value			$ 6,300
2020 repurchases of common stock
Stockholders' Equity
Stock Repurchase Program, Authorized Amount								$ 30,000	$ 30,000
2021 repurchases of common stock
Stockholders' Equity
Stock Repurchase Program, Authorized Amount						$ 30,000	$ 30,000
Stock Repurchased During Period, Shares				502,257
Stock Repurchased During Period, Value				$ 42,500
2021 block repurchases of common stock
Stockholders' Equity
Stock Repurchased During Period, Shares				250,000
Stock Repurchased During Period, Value				$ 21,900

Revenue - Returns and Disaggreg

Revenue - Returns and Disaggregation of Revenue (Details)	3 Months Ended		6 Months Ended
	Jul. 31, 2021	Aug. 01, 2020	Jul. 31, 2021	Aug. 01, 2020
Revenue, initial application period, cumulative effect transition
Period of time company allows customers to return merchandise			30 days
Women
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	28.00%	27.00%	29.00%	28.00%
Kids
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	20.00%	21.00%	20.00%	22.00%
Men
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	18.00%	19.00%	18.00%	17.00%
Beauty & Accessories
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	18.00%	15.00%	17.00%	15.00%
Home & Lifestyle
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	8.00%	9.00%	8.00%	8.00%
Footwear
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	8.00%	9.00%	8.00%	10.00%

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2021	Aug. 01, 2020	Jul. 31, 2021	Aug. 01, 2020
Leases
Lease term	5 years		5 years
Operating lease cost	$ 13,111	$ 11,912	$ 26,065	$ 24,465
Variable lease cost	2,598	2,332	5,579	4,125
Short term lease cost	246	453	561	817
Total lease cost	$ 15,955	$ 14,697	$ 32,205	$ 29,407
Minimum
Leases
Extension term	1 year		1 year
Maximum
Leases
Extension term	5 years		5 years

Leases - COVID-19 Update (Detai

Leases - COVID-19 Update (Details) - USD ($) $ in Millions	3 Months Ended
	Jul. 31, 2021	Aug. 01, 2020
Leases
Rent abatements due to the number of leases renegotiated in response to the negative financial impacts of COVID-19	$ 0.1	$ 0.6

Leases - Future Minimum Lease P

Leases - Future Minimum Lease Payments (Details) $ in Thousands	Jul. 31, 2021USD ($)
Future minimum lease payments under operating leases
Remainder of 2021	$ 25,561
2022	51,595
2023	43,846
2024	35,397
2025	25,183
Thereafter	39,085
Total future minimum lease payments	220,667
Less: imputed interest	(16,930)
Total present value of lease liabilities	$ 203,737

Leases - Cash flow and other in

Leases - Cash flow and other information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2021	Aug. 01, 2020	Jul. 31, 2021	Aug. 01, 2020
Supplemental cash flow and other information related to operating leases
Rent abatements due to the number of leases renegotiated in response to the negative financial impacts of COVID-19	$ 100	$ 600
Cash paid for operating leases			$ 27,618	$ 18,920
Right of use assets obtained in exchange for new operating lease liabilities			$ 36,247	$ 27,044
Weighted average remaining lease term - operating leases	5 years 2 months 4 days	5 years 3 months 10 days	5 years 2 months 4 days	5 years 3 months 10 days
Weighted average discount rate - operating leases (as a percent)	2.99%	3.29%	2.99%	3.29%