Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Feb. 03, 2024 | Apr. 13, 2024 | Jul. 29, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Period End Date | Feb. 03, 2024 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-41886 | ||
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 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 161,689,396 | ||
Entity Common Stock, Shares Outstanding | 8,536,956 | ||
Current Fiscal Year End Date | --02-03 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001318484 | ||
Amendment Flag | false | ||
Auditor Firm ID | 34 | ||
Auditor Name | Deloitte & Touche LLP | ||
Auditor Location | Atlanta, Georgia | ||
Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $.01 Par Value | ||
Trading Symbol | CTRN | ||
Security Exchange Name | NASDAQ | ||
Preferred Stock Purchase Rights | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Preferred Stock Purchase Rights | ||
No Trading Symbol Flag | true | ||
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 03, 2024 | Jan. 28, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 79,706 | $ 103,495 |
Inventory | 130,432 | 105,794 |
Prepaid and other current assets | 10,838 | 12,977 |
Income tax receivable | 4,123 | 615 |
Total current assets | 225,099 | 222,881 |
Property and equipment | 56,231 | 60,106 |
Operating lease right of use assets | 231,281 | 257,195 |
Deferred income taxes | 5,105 | 2,893 |
Other assets | 1,005 | 1,183 |
Total assets | 518,721 | 544,258 |
Current liabilities: | ||
Accounts payable | 100,366 | 80,670 |
Operating lease liabilities | 45,842 | 52,661 |
Accrued expenses | 16,466 | 16,055 |
Accrued compensation | 6,846 | 10,823 |
Layaway deposits | 384 | 344 |
Total current liabilities | 169,904 | 160,553 |
Noncurrent operating lease liabilities | 188,810 | 214,939 |
Other long-term liabilities | 2,301 | 2,322 |
Total liabilities | 361,015 | 377,814 |
Stockholders' equity: | ||
Common stock, $0.01 par value. Authorized 32,000,000 shares; 16,354,714 shares issued as of February 3, 2024 and 16,158,494 shares issued as of January 28, 2023; 8,550,701 shares outstanding as of February 3, 2024 and 8,354,481 shares outstanding as of January 28, 2023 | 160 | 160 |
Paid in capital | 105,686 | 102,445 |
Retained earnings | 319,071 | 331,050 |
Treasury stock, at cost; 7,804,013 shares held as of February 3, 2024 and January 28, 2023 | (267,211) | (267,211) |
Total stockholders' equity | 157,706 | 166,444 |
Commitments and contingencies (Note 7) | ||
Total liabilities and stockholders' equity | $ 518,721 | $ 544,258 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Feb. 03, 2024 | Jan. 28, 2023 |
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 | 16,354,714 | 16,158,494 |
Common stock, shares outstanding | 8,550,701 | 8,354,481 |
Treasury stock, shares | 7,804,013 | 7,804,013 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Consolidated Statements of Operations | |||
Net sales | $ 747,941 | $ 795,011 | $ 991,595 |
Revenue, Product and Service [Extensible List] | us-gaap:ProductMember | us-gaap:ProductMember | us-gaap:ProductMember |
Cost of sales (exclusive of depreciation shown separately below) | $ (462,824) | $ (484,022) | $ (584,063) |
Selling, general and administrative expenses | (284,530) | (279,177) | (307,622) |
Depreciation | (18,990) | (20,595) | (20,393) |
Asset impairment | (1,051) | ||
Gain on sale-leasebacks | 64,088 | ||
(Loss) income from operations | (19,454) | 75,305 | 79,517 |
Interest income | 3,874 | 1,034 | 31 |
Interest expense | (306) | (306) | (306) |
(Loss) income before income taxes | (15,886) | 76,033 | 79,242 |
Income tax benefit (expense) | 3,907 | (17,141) | (17,002) |
Net (loss) income | $ (11,979) | $ 58,892 | $ 62,240 |
Basic net (loss) income per common share | $ (1.46) | $ 7.17 | $ 6.98 |
Diluted net (loss) income per common share | $ (1.46) | $ 7.17 | $ 6.91 |
Weighted average number of shares outstanding | |||
Basic | 8,221,450 | 8,216,448 | 8,911,810 |
Diluted | 8,221,450 | 8,216,448 | 9,012,932 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Operating activities: | |||
Net (loss) income | $ (11,979) | $ 58,892 | $ 62,240 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 18,990 | 20,595 | 20,393 |
Non-cash operating lease costs | 50,462 | 51,310 | 50,455 |
Asset impairment | 1,051 | ||
Loss on disposal of property and equipment | 238 | 10 | 201 |
Deferred income taxes | (2,211) | 99 | 3,203 |
Insurance proceeds related to operating activities | 3,483 | 1,575 | 804 |
Non-cash stock-based compensation expense | 4,095 | 3,635 | 4,776 |
Gain on sale of assets or insurance related activities | (3,483) | (64,088) | |
Changes in assets and liabilities: | |||
Inventory | (24,638) | 16,826 | (20,381) |
Prepaid and other current assets | 2,139 | 1,660 | 2,011 |
Other assets | 178 | 134 | (278) |
Accounts payable | 17,861 | (18,329) | 12,833 |
Accrued expenses and other long-term liabilities | (58,318) | (54,844) | (53,187) |
Accrued compensation | (3,977) | (15,073) | (5) |
Income tax payable/receivable | (3,508) | 3,372 | (8,610) |
Layaway deposits | 40 | (20) | (136) |
Net cash (used in) provided by operating activities | (9,577) | 5,754 | 74,319 |
Investing activities: | |||
Sales/redemptions of investment securities | 35,272 | ||
Purchases of investment securities | (35,272) | ||
Purchases of property and equipment | (14,875) | (22,287) | (29,707) |
Insurance proceeds related to investing activities | 1,517 | 1,370 | 192 |
Proceeds from sale-leasebacks | 81,098 | ||
Net cash (used in) provided by investing activities | (13,358) | 60,181 | (29,515) |
Financing activities: | |||
Payment of debt issuance costs | (270) | ||
Cash used to settle withholding taxes on vested restricted stock | (854) | (2,228) | (2,638) |
Repurchase of common stock | (10,000) | (115,285) | |
Net cash used in financing activities | (854) | (12,228) | (118,193) |
Net (decrease) increase in cash and cash equivalents | (23,789) | 53,707 | (73,389) |
Cash and cash equivalents: | |||
Beginning of year | 103,495 | 49,788 | 123,177 |
End of year | 79,706 | 103,495 | 49,788 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 159 | 158 | 176 |
Cash payments of income taxes | 1,813 | 13,842 | 22,409 |
Supplemental disclosures of non-cash investing activities: | |||
Accrual for purchases of property and equipment | 2,936 | $ 1,522 | 2,847 |
Conversion of nonvested cash-settled units to nonvested shares under incentive plan | $ 3,400 | $ 3,415 |
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, 2021 | $ 158 | $ 95,484 | $ 209,918 | $ (141,926) | $ 163,634 |
Balances (in shares) at Jan. 30, 2021 | 15,981,394 | ||||
Balances (in shares) at Jan. 30, 2021 | 6,104,493 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Conversion of nonvested cash-settled units to nonvested shares | 3,415 | 3,415 | |||
Conversion of nonvested cash-settled units to nonvested shares (in shares) | 123,478 | ||||
Vesting of nonvested shares | $ 1 | 1 | |||
Issuance of nonvested shares (in shares) | 23,539 | ||||
Forfeiture of nonvested shares (in shares) | (9,166) | ||||
Stock-based compensation expense | 4,776 | 4,776 | |||
Net share settlement of nonvested shares | (2,638) | (2,638) | |||
Net share settlement of nonvested shares (in shares) | (28,880) | ||||
Repurchase of common stock | $ (115,285) | (115,285) | |||
Repurchase of common stock (in shares) | 1,368,662 | ||||
Net (loss) income | 62,240 | 62,240 | |||
Balances at Jan. 29, 2022 | $ 159 | 101,037 | 272,158 | $ (257,211) | 116,143 |
Balances (in shares) at Jan. 29, 2022 | 16,090,365 | ||||
Balances (in shares) at Jan. 29, 2022 | 7,473,155 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Conversion of nonvested cash-settled units to nonvested shares (in shares) | 140,441 | ||||
Vesting of nonvested shares | $ 2 | 2 | |||
Issuance of nonvested shares under incentive plan (in shares) | 15,977 | ||||
Forfeiture of nonvested shares (in shares) | (42,782) | ||||
Stock-based compensation expense | 3,635 | 3,635 | |||
Net share settlement of nonvested shares | $ (1) | (2,227) | (2,228) | ||
Net share settlement of nonvested shares (in shares) | (45,507) | ||||
Repurchase of common stock | $ (10,000) | (10,000) | |||
Repurchase of common stock (in shares) | 330,858 | ||||
Net (loss) income | 58,892 | 58,892 | |||
Balances at Jan. 28, 2023 | $ 160 | 102,445 | 331,050 | $ (267,211) | $ 166,444 |
Balances (in shares) at Jan. 28, 2023 | 16,158,494 | 16,158,494 | |||
Balances (in shares) at Jan. 28, 2023 | 7,804,013 | 7,804,013 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Conversion of nonvested cash-settled units to nonvested shares | $ 3,400 | ||||
Issuance of nonvested shares (in shares) | 272,426 | ||||
Forfeiture of nonvested shares (in shares) | (39,321) | ||||
Stock-based compensation expense | 4,095 | 4,095 | |||
Net share settlement of nonvested shares | (854) | (854) | |||
Net share settlement of nonvested shares (in shares) | (36,885) | ||||
Net (loss) income | (11,979) | (11,979) | |||
Balances at Feb. 03, 2024 | $ 160 | $ 105,686 | $ 319,071 | $ (267,211) | $ 157,706 |
Balances (in shares) at Feb. 03, 2024 | 16,354,714 | 16,354,714 | |||
Balances (in shares) at Feb. 03, 2024 | 7,804,013 | 7,804,013 |
Organization and Business
Organization and Business | 12 Months Ended |
Feb. 03, 2024 | |
Organization and Business | |
Organization and Business | 1. Organization and Business Citi Trends, Inc. and its subsidiary (the “ Company ” ) is a leading specialty value retailer of apparel, accessories and home trends for way less spend primarily for African American and multicultural families in the United States. As of February 3, 2024, the Company operated 602 stores in urban, suburban and rural markets in 33 states. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 03, 2024 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies 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 The Company ’ s fiscal year ends on the Saturday closest to January 31 of each year. The years ended February 3, 2024, January 28, 2023 and January 29, 2022 are referred to as fiscal 2023, fiscal 2022 and fiscal 2021, respectively, in the accompanying consolidated financial statements. Fiscal 2023 has a 53 -week accounting period, and fiscal years 2022 and 2021 are each comprised of 52 weeks. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ( “ U.S. GAAP ” ) requires management to make estimates and apply judgments that affect the reported amounts. Actual results could differ from those estimates. The most significant estimates 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. 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 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 and other assumptions for shrinkage activity. The allowance for inventory shrinkage was $3.9 million as of February 3, 2024 and $5.8 million as of January 28, 2023. 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, seven years for major purchased software systems, ten years for leasehold improvements and fifteen to twenty years for buildings and building improvements) of the related assets or the relevant lease term. 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 group 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 non-cash impairment expense in fiscal 2023 of $1.0 million consisting of $0.9 million for leasehold improvements and fixtures and equipment at underperforming stores, and $0.1 for a right of use asset. There was no impairment expense in 2022 or 2021. Insurance Liabilities The Company is largely self-insured for workers ’ compensation costs, general liability claims 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 The Company recognizes compensation expense associated with all nonvested restricted stock and performance-based restricted stock units based on the grant-date fair value of each award. The fair value of the awards is calculated based on the stock price on the grant date, incorporating an analysis of the performance measure where applicable. Compensation expense is recognized ratably over the requisite service period. See Note 6 for additional information on the Company ’ s stock-based compensation plans. 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. 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. The refund liability for merchandise returns is recorded in accrued expenses on the consolidated balance sheet and totaled $0.2 million and $0.3 million as of February 3, 2024 and January 28, 2023, respectively. The corresponding asset for the recoverable cost of expected refunds is included in prepaid and other current assets and totaled $0.1 million as of both February 3, 2024 and January 28, 2023. Disaggregation of Revenue In the following table, the Company ’ s revenue is disaggregated by “ Citi ” or major product category. The following table provides the percentage of net sales for each Citi within the merchandise assortment: Fiscal Year Citis 2023 2022 2021 Ladies 27 % 26 % 26 % Kids 23 % 23 % 22 % Accessories & Beauty 17 % 18 % 18 % Mens 17 % 17 % 18 % Home & Lifestyle 9 % 8 % 9 % Footwear 7 % 8 % 7 % 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, freight from the distribution centers to the stores and freight from vendors to 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 2023, 2022 and 2021 were $31.0 million, $26.3 million and $24.9 million, respectively. 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 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: Fiscal Year 2023 2022 2021 Weighted average number of common shares outstanding 8,221,450 8,216,448 8,911,810 Incremental shares from assumed vesting of nonvested restricted stock — — 101,122 Average number of common shares and common stock equivalents outstanding 8,221,450 8,216,448 9,012,932 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 costs attributed to future services and not yet recognized. For fiscal 2023, 2022 and 2021, respectively, there were 273,000 , 218,000 and 47,000 shares of nonvested restricted stock excluded from the calculation of diluted earnings per share because of antidilution. Advertising The Company expenses advertising as incurred. Advertising expense for fiscal 2023, 2022 and 2021 was $1.6 million, $0.8 million and $1.2 million, respectively. Operating Leases The Company leases all of its retail store locations, its distribution centers and certain office space and equipment. All leases are classified as operating leases. The Company records right-of-use assets and lease liabilities based on the present value of future minimum lease payments using an incremental borrowing rate. The incremental borrowing rate is determined based on rates and terms from the Company ’ s existing borrowing facility with adjustments to bridge for differences in collateral, terms and payments. Lease costs are recognized over the estimated term of the lease, which includes any reasonably certain lease periods associated with available renewal periods. Lease expense for fixed lease payments is recognized on a straight-line basis over the lease term. In addition, 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 included in the determination of total rent expense when it is probable that the expense has been incurred and the amount can be reasonably estimated. If an operating lease asset is impaired, the remaining operating lease asset will be amortized on a straight-line basis over the remaining lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet. 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. Business Operating Segment The Company is a specialty value retailer of fashion apparel, accessories and home goods 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. New Accounting Pronouncement In December 2023, the FASB issued ASU 2023-09, “ Improvement to Income Tax Disclosures (Topic 740) ” , which requires additional disclosures for income tax rate reconciliations, income taxes paid, and certain other tax disclosures. ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in ASU 2023-09 address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. Adoption is required for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Feb. 03, 2024 | |
Property and Equipment, net | |
Property and Equipment, net | 3. Property and Equipment, net Property and equipment, net, consists of the following (in thousands): February 3, January 28, 2024 2023 Buildings $ 4,786 $ 4,786 Leasehold improvements 131,143 128,522 Furniture, fixtures and equipment 138,980 137,464 Computer equipment 56,666 50,457 Construction in progress 1,102 1,402 332,677 322,631 Accumulated depreciation (276,446) (262,525) $ 56,231 $ 60,106 |
Revolving Line of Credit
Revolving Line of Credit | 12 Months Ended |
Feb. 03, 2024 | |
Revolving Line of Credit | |
Revolving Line of Credit | 4. 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 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. In May 2023, the facility was amended to replace the London Interbank Offered Rate ( “ LIBOR ” ) with the Secured Overnight Financing Rate ( “ SOFR ” ). 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 SOFR Loans, at a rate equal to the SOFR Rate plus a SOFR adjustment equal to 0.10% 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. As of February 3, 2024, the Company had no borrowings under the credit facility and $1.4 million of letters of credit outstanding. |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 03, 2024 | |
Income Taxes | |
Income Taxes | 5. Income Taxes Income tax benefit (expense) consists of the following (in thousands): Fiscal Year 2023 2022 2021 Current: Federal $ 2,025 $ (12,616) $ (11,326) State (329) (4,426) (2,473) Total current 1,696 (17,042) (13,799) Deferred: Federal 2,635 (1,031) (2,629) State (424) 932 (574) Total deferred 2,211 (99) (3,203) Total income tax benefit (expense) $ 3,907 $ (17,141) $ (17,002) Income tax benefit (expense) computed using the federal statutory rate is reconciled to the reported income tax benefit (expense) as follows (in thousands): Fiscal Year 2023 2022 2021 Statutory rate applied to income before income taxes $ 3,337 $ (15,967) $ (16,641) State income taxes, net of federal benefit 240 (2,738) (2,936) State tax credits (167) (268) 152 State tax credits - valuation allowance (net of federal benefit) (774) 393 158 General business credits 1,840 1,871 1,433 Nondeductible compensation — (44) (455) Excess (deficit) tax benefits from stock-based compensation (519) (507) 1,226 Other (50) 119 61 Income tax benefit (expense) $ 3,907 $ (17,141) $ (17,002) Deferred tax assets and deferred tax liabilities consist of the following (in thousands): February 3, January 28, 2024 2023 Deferred tax assets: Inventory capitalization $ 2,422 $ 1,627 Vacation liability 489 911 Operating lease liabilities 59,556 67,075 State tax credits 2,599 2,765 Stock compensation 1,059 1,178 Insurance liabilities 855 972 Research and development 1,399 811 Net operating loss and charitable contribution carryforwards 2,434 — Other 507 605 Subtotal deferred tax assets 71,320 75,944 Less: State tax credits valuation allowance - net (1,937) (1,163) Total deferred tax assets 69,383 74,781 Deferred tax liabilities: Right of use asset (57,690) (65,130) Book and tax depreciation differences (6,115) (5,798) Prepaid expenses (473) (960) Total deferred tax liabilities (64,278) (71,888) Net deferred tax asset $ 5,105 $ 2,893 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 2019. 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 3, 2024, there were no material 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. At February 3, 2024, the Company had income tax net operating loss ( “ NOL ” ) carryforwards for federal purposes of $9.5 million (gross) and for state purposes of $0.4 million (tax effected). The federal tax NOL carryforwards have an indefinite carryforward, but are limited to offsetting 80% of taxable income in future years. The majority of state tax NOL carryforwards either follow federal indefinite carryforward or begin to expire in 2038, with one jurisdiction expiring in 2028. 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 3, 2024, the valuation allowance, net of federal tax benefit, totaled $1.9 million. The effective income tax rate for fiscal 2023, 2022 and 2021 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 $2.2 million, $1.6 million and $1.6 million related to such credits in each of fiscal 2023, 2022 and 2021, respectively . |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Feb. 03, 2024 | |
Stockholders' Equity | |
Stockholders' Equity | 6 . Stockholders ’ Equity Repurchases of common stock The Company periodically repurchases shares of its common stock under board-authorized repurchase programs. Such repurchases may be made in the open market, through block trades or through other negotiated transactions. Share repurchases are as follows (in thousands, except per share data): Fiscal Year 2023 2022 2021 Total number of shares purchased — 331 1,369 Average price paid per share (including commissions) $ — $ 30.22 $ 84.23 Total investment $ — $ 10,000 $ 115,285 At February 3, 2024, $50.0 million remained available under the Company ’ s previously announced stock repurchase authorization. Stock-Based Compensation The Company maintains the Citi Trends, Inc. Incentive Plan (the “ Plan ” ) which permits the grant of stock-based incentive awards to employees, officers, directors and consultants. The Plan provides for the grant of incentive and nonqualified options, stock appreciation rights, restricted stock, restricted stock units, performance awards and other forms of stock-based and cash-based compensation. At February 3, 2024, the Company had 361,841 shares reserved for future grants under the Plan. During fiscal 2023, 2022 and 2021, non-cash stock-based compensation expense recorded in selling and general and administrative expenses totaled $4.1 million, $3.6 million and $4.8 million, respectively. The income tax expense (benefit) resulting from the fair market value of restricted stock at vesting versus the cumulative compensation cost of such stock is recorded as a component of income tax expense and was $0.5 million, $0.5 million and ($1.2) million, respectively. The Company issues shares of restricted stock to key team members and non-employee directors. Restricted stock granted to employees vests in equal installments over three years from the date of grant. Restricted stock granted to non-employee directors vests one year from the date of grant. The Company also issues performance-based restricted stock units ( “ PSUs ” ) to key team members that cliff vest at the end of a three-year period based upon the Company ’ s achievement of pre-established goals. The number of units earned and vested is subject to scaling based on a pre-established performance matrix. Prior to fiscal 2021, the Company issued cash-settled restricted stock units ( “ CSUs ” ) to certain team members. In the fourth quarter of fiscal 2021, all outstanding CSUs were converted to time-based restricted stock, with vesting criteria based on the original vesting criteria for the CSUs. This conversion resulted in the reclassification of a $3.4 million liability from accrued compensation to equity. The following table summarizes activity related to nonvested restricted stock and PSUs during fiscal 2023: Time-Based Restricted Stock Performance-Based Restricted Stock Units Weighted Average Weighted Average Nonvested Grant Date Nonvested Grant Date Shares Fair Value Units Fair Value Outstanding as of January 28, 2023 195,509 $ 43.41 72,590 $ 44.60 Granted 272,479 16.97 107,826 16.08 Vested (117,785) 44.89 — — Forfeited (39,321) 26.39 (80,949) 41.65 Outstanding as of February 3, 2024 310,882 $ 21.83 99,467 $ 16.08 At February 3, 2024, there was $4.1 million of unrecognized compensation expense related to restricted stock. Based on current probable performance, we have determined no compensation expense is required on our PSUs. Stockholder Right Agreement On December 6, 2023, the board of directors adopted a limited duration stockholder protection rights plan, pursuant to which the board declared a dividend of one preferred share purchase right (a “ Right ” ) for each of the Company ’ s issued and outstanding shares of common stock, par value $0.01 per share. The dividend was paid to the stockholders of record at the close of business on December 18, 2023. Each Right entitles the registered holder, subject to the terms of the Rights Agreement (as defined below), to purchase from the Company one ten-thousandth of a share of the Company ’ s Series A Junior Participating Preferred Stock, par value $0.01 per share, at a price of $120.00 , subject to certain adjustments. The Rights are governed by the Stockholder Protection Rights Agreement, dated as of December 6, 2023 (the “ Rights Agreement ” ), by and between the Company and Equiniti Trust Company, LLC, and are exercisable only after the occurrence of certain conditions set forth in the Rights Agreement. The Rights Agreement expires upon the close of business on December 4, 2024, but may expire earlier upon the occurrence of certain events set forth in the Rights Agreement . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 03, 2024 | |
Commitments and Contingencies | |
Commitments and Contingencies | 7. 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, 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. In connection with the previously disclosed January 2023 cyber disruption, four putative class action lawsuits were filed against the Company in the United States District Court for the Southern District of Georgia (the “ Court ” ). These matters, Matousek et al v. Citi Trends, Inc.; Sienna Thomas v. Citi Trends, Inc.; Yeimy Sambrano v. Citi Trends, Inc.; Sabrina Green-Fogg v. Citi Trends, Inc. were filed in the second half of 2023, and consolidated into one case by the Court on November 8, 2023. The plaintiffs allege harm in connection with the January 2023 cyber disruption and assert a variety of claims seeking unspecified monetary damages and other related relief. A consolidated class action complaint was filed on February 15, 2024, adding an additional plaintiff, Shykira Scott. The Company is vigorously defending these lawsuits and filed a motion to dismiss the consolidated class action complaint, as well as a motion to compel individual arbitration and dismiss or stay actions on March 22, 2024. In addition, the Attorneys General of Alabama, Connecticut, Indiana and Texas sent inquiry letters to the Company regarding the January 2023 cyber disruption, which the Company has answered. As of the end of fiscal 2023, the Company had an accrual of $0.8 million for estimated losses in connection with these matters recorded in Accrued expenses. The ultimate loss to the Company for these matters could be materially different from the amount the Company has accrued. The Company cannot predict or estimate the duration or ultimate outcome of these matters. The Company is unable to predict whether it may be subject to other lawsuits, claims or inquiries. While legal proceedings are subject to uncertainties and the outcome of any such matter is not predictable and it is possible that we could incur losses associated with these proceedings, the Company does not believe, based on the information available to it at the time of this filing, that any legal proceedings pending or threatened against it will have a material adverse effect on its financial condition, results of operations or liquidity. The Company is also party to purchase obligations for open merchandise orders of $132.8 million that is due within 12 months. |
Leases
Leases | 12 Months Ended |
Feb. 03, 2024 | |
Leases | |
Leases | 8. Leases The Company leases its retail store locations, its distribution centers 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. In fiscal 2022, the Company completed sale-leasebacks of its distribution centers. The Darlington, South Carolina distribution center lease has a 20-year lease term with the option to extend for six additional periods of five years each. The Roland, Oklahoma distribution center has a 15-year lease term with the option to extend for six additional periods of five years each. The sale-leaseback transactions resulted in a gain of approximately $64.1 million in the Statement of Operations for the year ended January 28, 2023. 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 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): Fiscal Year 2023 2022 2021 Operating lease cost $ 62,163 $ 60,167 $ 52,737 Variable lease cost 11,070 9,911 10,938 Short term lease cost 1,598 1,395 1,091 Total lease cost $ 74,831 $ 71,473 $ 64,766 Future minimum lease payments as of February 3, 2024 are as follows (in thousands): Fiscal Year Lease Costs 2024 $ 57,012 2025 52,638 2026 41,363 2027 30,650 2028 22,674 Thereafter 102,932 Total future minimum lease payments 307,269 Less: imputed interest (72,617) (1) Total present value of lease liabilities $ 234,652 (2) (1) Calculated using the discount rate for each lease. (2) Includes short-term and long-term portions of 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 flow and other information related to operating leases are as follows (in thousands, except for weighted average amounts): Fiscal Year 2023 2022 2021 Cash paid for operating leases $ 68,371 $ 56,053 $ 56,932 Right of use assets obtained in exchange for new operating lease liabilities $ 27,836 $ 101,241 $ 75,359 Weighted average remaining lease term (years) - operating leases 7.54 7.83 5.32 Weighted average discount rate - operating leases 5.04% 4.49% 2.86% |
Subsequent Event
Subsequent Event | 12 Months Ended |
Feb. 03, 2024 | |
Subsequent Event. | |
Subsequent Event | 9. Subsequent Event As previously disclosed in the Company ’ s Form 8-K filed on February 29, 2024, the Company entered into a Cooperation Agreement (the “ Cooperation Agreement ” ) with Fund 1 Investments, LLC, a Delaware limited liability company (the “ Investor ” ) on February 28, 2024. Pursuant to the Cooperation Agreement, the Company (i) appointed certain individuals as an observer to the Company ’ s Board of Directors to serve as such until the conclusion of the 2024 annual meeting of stockholders (ii) agreed to nominate each of the individuals for election to the Board at the 2024 Annual Meeting; and (iii) accepted the retirement, effective as of the conclusion of the 2024 Annual Meeting, of three incumbent directors. The Cooperation Agreement also gives the Investor, contingent upon the Investor satisfying certain conditions, replacement rights with respect to those new directors. In addition, the Investor agreed to vote all Voting Securities (as defined in the Cooperation Agreement) beneficially owned by it or its affiliates at the 2024 Annual Meeting in accordance with the Board ’ s recommendations with respect to any and all proposals, with limited and specified exceptions. The Investor also agreed to certain customary standstill provisions prohibiting it from, among other things, (i) soliciting proxies; (ii) advising or knowingly encouraging any person with respect to the voting or disposition of any securities of the Company, subject to limited exceptions; (iii) making public announcements regarding certain transactions involving the Company; and (iv) taking actions to change or influence the Board, management or the direction of certain Company matters; in each case as further described in the Cooperation Agreement. Until the Termination Date (as defined in the Cooperation Agreement), the Company and Investor also agreed to certain mutual non-disparagement provisions. The Cooperation Agreement will terminate on the date that is the earlier of (i) 30 days prior to the opening of the window for the submission of stockholder director nominations for the Company ’ s 2025 annual meeting of stockholders and (ii) 150 days prior to the one-year anniversary of the 2024 Annual Meeting (the earlier of (i) and (ii), the Termination Date). |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 03, 2024 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation | 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 | Fiscal Year The Company ’ s fiscal year ends on the Saturday closest to January 31 of each year. The years ended February 3, 2024, January 28, 2023 and January 29, 2022 are referred to as fiscal 2023, fiscal 2022 and fiscal 2021, respectively, in the accompanying consolidated financial statements. Fiscal 2023 has a 53 -week accounting period, and fiscal years 2022 and 2021 are each comprised of 52 weeks. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ( “ U.S. GAAP ” ) requires management to make estimates and apply judgments that affect the reported amounts. Actual results could differ from those estimates. The most significant estimates 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. |
Cash and Cash Equivalents/Concentration of Credit Risk | 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 | 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 and other assumptions for shrinkage activity. The allowance for inventory shrinkage was $3.9 million as of February 3, 2024 and $5.8 million as of January 28, 2023. |
Property and Equipment, net | 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, seven years for major purchased software systems, ten years for leasehold improvements and fifteen to twenty years for buildings and building improvements) of the related assets or the relevant lease term. |
Impairment of Long-Lived Assets | 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 group 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 non-cash impairment expense in fiscal 2023 of $1.0 million consisting of $0.9 million for leasehold improvements and fixtures and equipment at underperforming stores, and $0.1 for a right of use asset. There was no impairment expense in 2022 or 2021. |
Insurance Liabilities | Insurance Liabilities The Company is largely self-insured for workers ’ compensation costs, general liability claims 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 | Stock-Based Compensation The Company recognizes compensation expense associated with all nonvested restricted stock and performance-based restricted stock units based on the grant-date fair value of each award. The fair value of the awards is calculated based on the stock price on the grant date, incorporating an analysis of the performance measure where applicable. Compensation expense is recognized ratably over the requisite service period. See Note 6 for additional information on the Company ’ s stock-based compensation plans. |
Revenue Recognition | 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. 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. The refund liability for merchandise returns is recorded in accrued expenses on the consolidated balance sheet and totaled $0.2 million and $0.3 million as of February 3, 2024 and January 28, 2023, respectively. The corresponding asset for the recoverable cost of expected refunds is included in prepaid and other current assets and totaled $0.1 million as of both February 3, 2024 and January 28, 2023. |
Disaggregation of Revenue | Disaggregation of Revenue In the following table, the Company ’ s revenue is disaggregated by “ Citi ” or major product category. The following table provides the percentage of net sales for each Citi within the merchandise assortment: Fiscal Year Citis 2023 2022 2021 Ladies 27 % 26 % 26 % Kids 23 % 23 % 22 % Accessories & Beauty 17 % 18 % 18 % Mens 17 % 17 % 18 % Home & Lifestyle 9 % 8 % 9 % Footwear 7 % 8 % 7 % |
Cost of Sales | 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, freight from the distribution centers to the stores and freight from vendors to 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 2023, 2022 and 2021 were $31.0 million, $26.3 million and $24.9 million, respectively. |
Earnings per Share | 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 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: Fiscal Year 2023 2022 2021 Weighted average number of common shares outstanding 8,221,450 8,216,448 8,911,810 Incremental shares from assumed vesting of nonvested restricted stock — — 101,122 Average number of common shares and common stock equivalents outstanding 8,221,450 8,216,448 9,012,932 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 costs attributed to future services and not yet recognized. For fiscal 2023, 2022 and 2021, respectively, there were 273,000 , 218,000 and 47,000 shares of nonvested restricted stock excluded from the calculation of diluted earnings per share because of antidilution. |
Advertising | Advertising The Company expenses advertising as incurred. Advertising expense for fiscal 2023, 2022 and 2021 was $1.6 million, $0.8 million and $1.2 million, respectively. |
Operating Leases | Operating Leases The Company leases all of its retail store locations, its distribution centers and certain office space and equipment. All leases are classified as operating leases. The Company records right-of-use assets and lease liabilities based on the present value of future minimum lease payments using an incremental borrowing rate. The incremental borrowing rate is determined based on rates and terms from the Company ’ s existing borrowing facility with adjustments to bridge for differences in collateral, terms and payments. Lease costs are recognized over the estimated term of the lease, which includes any reasonably certain lease periods associated with available renewal periods. Lease expense for fixed lease payments is recognized on a straight-line basis over the lease term. In addition, 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 included in the determination of total rent expense when it is probable that the expense has been incurred and the amount can be reasonably estimated. If an operating lease asset is impaired, the remaining operating lease asset will be amortized on a straight-line basis over the remaining lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet. |
Income Taxes | 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. |
Business Operating Segment | Business Operating Segment The Company is a specialty value retailer of fashion apparel, accessories and home goods 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. |
Recently Adopted Accounting Standards | New Accounting Pronouncement In December 2023, the FASB issued ASU 2023-09, “ Improvement to Income Tax Disclosures (Topic 740) ” , which requires additional disclosures for income tax rate reconciliations, income taxes paid, and certain other tax disclosures. ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in ASU 2023-09 address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. Adoption is required for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Summary of Significant Accounting Policies | |
Schedule of revenue from contracts with customers disaggregated by major product line | Fiscal Year Citis 2023 2022 2021 Ladies 27 % 26 % 26 % Kids 23 % 23 % 22 % Accessories & Beauty 17 % 18 % 18 % Mens 17 % 17 % 18 % Home & Lifestyle 9 % 8 % 9 % Footwear 7 % 8 % 7 % |
Schedule of reconciliation of the number of average common shares outstanding used to calculate basic and diluted earnings per share | Fiscal Year 2023 2022 2021 Weighted average number of common shares outstanding 8,221,450 8,216,448 8,911,810 Incremental shares from assumed vesting of nonvested restricted stock — — 101,122 Average number of common shares and common stock equivalents outstanding 8,221,450 8,216,448 9,012,932 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Property and Equipment, net | |
Schedule of the components of property and equipment | Property and equipment, net, consists of the following (in thousands): February 3, January 28, 2024 2023 Buildings $ 4,786 $ 4,786 Leasehold improvements 131,143 128,522 Furniture, fixtures and equipment 138,980 137,464 Computer equipment 56,666 50,457 Construction in progress 1,102 1,402 332,677 322,631 Accumulated depreciation (276,446) (262,525) $ 56,231 $ 60,106 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Income Taxes | |
Schedule of income tax (benefit) expense | Income tax benefit (expense) consists of the following (in thousands): Fiscal Year 2023 2022 2021 Current: Federal $ 2,025 $ (12,616) $ (11,326) State (329) (4,426) (2,473) Total current 1,696 (17,042) (13,799) Deferred: Federal 2,635 (1,031) (2,629) State (424) 932 (574) Total deferred 2,211 (99) (3,203) Total income tax benefit (expense) $ 3,907 $ (17,141) $ (17,002) |
Schedule of the reconciliation of income tax (benefit) expense computed using the federal statutory rate to the reported income tax (benefit) expense | Income tax benefit (expense) computed using the federal statutory rate is reconciled to the reported income tax benefit (expense) as follows (in thousands): Fiscal Year 2023 2022 2021 Statutory rate applied to income before income taxes $ 3,337 $ (15,967) $ (16,641) State income taxes, net of federal benefit 240 (2,738) (2,936) State tax credits (167) (268) 152 State tax credits - valuation allowance (net of federal benefit) (774) 393 158 General business credits 1,840 1,871 1,433 Nondeductible compensation — (44) (455) Excess (deficit) tax benefits from stock-based compensation (519) (507) 1,226 Other (50) 119 61 Income tax benefit (expense) $ 3,907 $ (17,141) $ (17,002) |
Schedule of the components of deferred tax assets and deferred tax liabilities | Deferred tax assets and deferred tax liabilities consist of the following (in thousands): February 3, January 28, 2024 2023 Deferred tax assets: Inventory capitalization $ 2,422 $ 1,627 Vacation liability 489 911 Operating lease liabilities 59,556 67,075 State tax credits 2,599 2,765 Stock compensation 1,059 1,178 Insurance liabilities 855 972 Research and development 1,399 811 Net operating loss and charitable contribution carryforwards 2,434 — Other 507 605 Subtotal deferred tax assets 71,320 75,944 Less: State tax credits valuation allowance - net (1,937) (1,163) Total deferred tax assets 69,383 74,781 Deferred tax liabilities: Right of use asset (57,690) (65,130) Book and tax depreciation differences (6,115) (5,798) Prepaid expenses (473) (960) Total deferred tax liabilities (64,278) (71,888) Net deferred tax asset $ 5,105 $ 2,893 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Stockholders' Equity | |
Schedule of activity related to stock repurchases | Fiscal Year 2023 2022 2021 Total number of shares purchased — 331 1,369 Average price paid per share (including commissions) $ — $ 30.22 $ 84.23 Total investment $ — $ 10,000 $ 115,285 |
Schedule of activity related to nonvested restricted stock grants | Time-Based Restricted Stock Performance-Based Restricted Stock Units Weighted Average Weighted Average Nonvested Grant Date Nonvested Grant Date Shares Fair Value Units Fair Value Outstanding as of January 28, 2023 195,509 $ 43.41 72,590 $ 44.60 Granted 272,479 16.97 107,826 16.08 Vested (117,785) 44.89 — — Forfeited (39,321) 26.39 (80,949) 41.65 Outstanding as of February 3, 2024 310,882 $ 21.83 99,467 $ 16.08 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Feb. 03, 2024 | |
Leases | |
Schedule of lease expense | Fiscal Year 2023 2022 2021 Operating lease cost $ 62,163 $ 60,167 $ 52,737 Variable lease cost 11,070 9,911 10,938 Short term lease cost 1,598 1,395 1,091 Total lease cost $ 74,831 $ 71,473 $ 64,766 |
Schedule of future minimum rent payments under operating leases | Future minimum lease payments as of February 3, 2024 are as follows (in thousands): Fiscal Year Lease Costs 2024 $ 57,012 2025 52,638 2026 41,363 2027 30,650 2028 22,674 Thereafter 102,932 Total future minimum lease payments 307,269 Less: imputed interest (72,617) (1) Total present value of lease liabilities $ 234,652 (2) (1) Calculated using the discount rate for each lease. (2) Includes short-term and long-term portions of operating leases. |
Schedule of supplemental cash flow and other information | Supplemental cash flow and other information related to operating leases are as follows (in thousands, except for weighted average amounts): Fiscal Year 2023 2022 2021 Cash paid for operating leases $ 68,371 $ 56,053 $ 56,932 Right of use assets obtained in exchange for new operating lease liabilities $ 27,836 $ 101,241 $ 75,359 Weighted average remaining lease term (years) - operating leases 7.54 7.83 5.32 Weighted average discount rate - operating leases 5.04% 4.49% 2.86% |
Organization and Business (Deta
Organization and Business (Details) | Feb. 03, 2024 state store |
Organization and Business | |
Number of stores operated | store | 602 |
Number of states in which company operates | state | 33 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - PPE and Insurance Liabilities (Details) - USD ($) | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Fiscal Year | |||
Length of fiscal year | 371 days | 364 days | 364 days |
Inventory | |||
Allowance for inventory shrinkage | $ 3,900,000 | $ 5,800,000 | |
Impairment of long lived assets | |||
Non-cash impairment expense | 1,000,000 | $ 0 | $ 0 |
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 and Fixtures | Minimum | |||
Property and Equipment, net | |||
Estimated useful lives | 3 years | ||
Furniture and Fixtures | Maximum | |||
Property and Equipment, net | |||
Estimated useful lives | 5 years | ||
Leasehold Improvements | |||
Property and Equipment, net | |||
Estimated useful lives | 10 years | ||
Software | |||
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 | ||
Leasehold improvements and fixtures and equipment at underperforming stores | |||
Impairment of long lived assets | |||
Non-cash impairment expense | $ 900,000 | ||
Right of use asset | |||
Impairment of long lived assets | |||
Non-cash impairment expense | $ 100,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Returns and Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Revenue, initial application period, cumulative effect transition | |||
Period of time company allows customers to return merchandise | 30 days | ||
Estimated refund liability | $ 0.2 | $ 0.3 | |
Carrying value of return asset | 0.1 | 0.1 | |
Distribution center costs | $ 31 | $ 26.3 | $ 24.9 |
Ladies | |||
Revenue, initial application period, cumulative effect transition | |||
Revenue from contracts with customers disaggregated by major product line (as a percent) | 27% | 26% | 26% |
Kids | |||
Revenue, initial application period, cumulative effect transition | |||
Revenue from contracts with customers disaggregated by major product line (as a percent) | 23% | 23% | 22% |
Accessories & Beauty | |||
Revenue, initial application period, cumulative effect transition | |||
Revenue from contracts with customers disaggregated by major product line (as a percent) | 17% | 18% | 18% |
Mens | |||
Revenue, initial application period, cumulative effect transition | |||
Revenue from contracts with customers disaggregated by major product line (as a percent) | 17% | 17% | 18% |
Home & Lifestyle | |||
Revenue, initial application period, cumulative effect transition | |||
Revenue from contracts with customers disaggregated by major product line (as a percent) | 9% | 8% | 9% |
Footwear | |||
Revenue, initial application period, cumulative effect transition | |||
Revenue from contracts with customers disaggregated by major product line (as a percent) | 7% | 8% | 7% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - EPS, Advertising and Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Reconciliation of average number of common shares outstanding used to calculate basic and diluted earnings per share | |||
Weighted average number of common shares outstanding | 8,221,450 | 8,216,448 | 8,911,810 |
Incremental shares from assumed vesting of nonvested restricted stock | 101,122 | ||
Average number of common shares and common stock equivalents outstanding | 8,221,450 | 8,216,448 | 9,012,932 |
Advertising | |||
Advertising expense | $ 1.6 | $ 0.8 | $ 1.2 |
Restricted Stock | |||
Reconciliation of average number of common shares outstanding used to calculate basic and diluted earnings per share | |||
Securities excluded from calculation of diluted earnings per share (in shares) | 273,000 | 218,000 | 47,000 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Segments and Concentration Risk (Details) | 12 Months Ended |
Feb. 03, 2024 segment | |
Summary of Significant Accounting Policies | |
Number of operating segments | 1 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) $ in Thousands | Feb. 03, 2024 | Jan. 28, 2023 |
Property and Equipment, net | ||
Property and equipment, gross | $ 332,677 | $ 322,631 |
Accumulated depreciation | (276,446) | (262,525) |
Property and Equipment, net | 56,231 | 60,106 |
Building | ||
Property and Equipment, net | ||
Property and equipment, gross | 4,786 | 4,786 |
Leasehold Improvements | ||
Property and Equipment, net | ||
Property and equipment, gross | 131,143 | 128,522 |
Furniture and Fixtures | ||
Property and Equipment, net | ||
Property and equipment, gross | 138,980 | 137,464 |
Computer Equipment | ||
Property and Equipment, net | ||
Property and equipment, gross | 56,666 | 50,457 |
Construction in Progress | ||
Property and Equipment, net | ||
Property and equipment, gross | $ 1,102 | $ 1,402 |
Revolving Line of Credit (Detai
Revolving Line of Credit (Details) - USD ($) $ in Millions | Apr. 15, 2021 | Oct. 27, 2011 | Feb. 03, 2024 |
Line of Credit | |||
Revolving Line of Credit | |||
Term of credit facility | 5 years | ||
Maximum borrowing capacity | $ 75 | $ 50 | |
Borrowing capacity, accordion feature | 25 | ||
Maximum borrowing capacity including accordion expansion | $ 100 | ||
Unused commitment fee (as a percent) | 0.20% | ||
Debt outstanding | $ 0 | ||
Line of Credit | Secured Overnight Financing Rate | |||
Revolving Line of Credit | |||
Margin added to variable rate (as a percent) | 0.10% | ||
Line of Credit | Federal Fund Rate | |||
Revolving Line of Credit | |||
Margin added to variable rate (as a percent) | 0.50% | ||
Line of Credit | Eurodollar Rate plus 1% | |||
Revolving Line of Credit | |||
Margin added to variable rate (as a percent) | 1% | ||
Letter of Credit | |||
Revolving Line of Credit | |||
Debt outstanding | $ 1.4 | ||
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 | Eurodollar Rate plus 1% | |||
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 | Eurodollar Rate plus 1% | |||
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 | Eurodollar Rate plus 1% | |||
Revolving Line of Credit | |||
Margin added to variable rate (as a percent) | 0.75% |
Income Taxes - Income Tax (Bene
Income Taxes - Income Tax (Benefit) Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Current: | |||
Federal | $ 2,025 | $ (12,616) | $ (11,326) |
State | (329) | (4,426) | (2,473) |
Total current | 1,696 | (17,042) | (13,799) |
Deferred: | |||
Federal | 2,635 | (1,031) | (2,629) |
State | (424) | 932 | (574) |
Total deferred | 2,211 | (99) | (3,203) |
Income tax benefit (expense) | $ 3,907 | $ (17,141) | $ (17,002) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Federal Statutory Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
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 | $ 3,337 | $ (15,967) | $ (16,641) |
State income taxes, net of federal benefit | 240 | (2,738) | (2,936) |
State tax credits | (167) | (268) | 152 |
State tax credits - valuation allowance (net of federal benefit) | (774) | 393 | 158 |
General business credits | 1,840 | 1,871 | 1,433 |
Nondeductible compensation | (44) | (455) | |
Excess (deficit) tax benefits from stock-based compensation | (519) | (507) | 1,226 |
Other | (50) | 119 | 61 |
Income tax benefit (expense) | $ 3,907 | $ (17,141) | $ (17,002) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Feb. 03, 2024 | Jan. 28, 2023 |
Deferred tax assets: | ||
Inventory capitalization | $ 2,422 | $ 1,627 |
Vacation liability | 489 | 911 |
Operating lease liabilities | 59,556 | 67,075 |
State tax credits | 2,599 | 2,765 |
Stock compensation | 1,059 | 1,178 |
Insurance liabilities | 855 | 972 |
Research and development | 1,399 | 811 |
Net operating loss and charitable contribution carryforwards | 2,434 | |
Other | 507 | 605 |
Subtotal deferred tax assets | 71,320 | 75,944 |
Less: State tax credits valuation allowance - net | (1,937) | (1,163) |
Total deferred tax assets | 69,383 | 74,781 |
Deferred tax liabilities: | ||
Right of use asset | (57,690) | (65,130) |
Book and tax depreciation differences | (6,115) | (5,798) |
Prepaid expenses | (473) | (960) |
Total deferred tax liabilities | (64,278) | (71,888) |
Net deferred tax asset | $ 5,105 | $ 2,893 |
Income Taxes - Income Tax (Be_2
Income Taxes - Income Tax (Benefit) Expense Components (Details) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 USD ($) jurisdiction item | Jan. 28, 2023 USD ($) | Jan. 29, 2022 USD ($) | |
Income Taxes | |||
Benefits not recognized due to uncertainty | $ 0 | ||
Net operating loss ("NOL") carryforwards which are limited to offsetting taxable income in future years (as a percent). | 80% | ||
Number of states in which ability to utilize tax credits is no longer more likely than not | item | 1 | ||
Valuation allowance, net | $ 1,937 | $ 1,163 | |
Credits carry back period | 1 year | ||
Credits carry forward period | 20 years | ||
Income tax benefit related to federal and state tax credits | $ 2,200 | $ 1,600 | $ 1,600 |
Federal | |||
Income Taxes | |||
Net operating loss ("NOL") carryforwards | 9,500 | ||
State | |||
Income Taxes | |||
Net operating loss ("NOL") carryforwards | $ 400 | ||
Number of states in which ability to utilize tax credits is no longer more likely than not | jurisdiction | 1 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 28, 2023 | Jan. 29, 2022 | Feb. 03, 2024 | |
Stockholders' Equity | |||
Total number of shares purchased | 331 | 1,369 | |
Average price paid per share (including commissions) | $ 30.22 | $ 84.23 | |
Total investment | $ 10,000 | $ 115,285 | |
Remaining value of shares available for repurchase | $ 50,000 |
Stockholders' Equity - Time-Bas
Stockholders' Equity - Time-Based Nonvested Restricted Stock Granted to Employees (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Stockholders' Equity | |||
Shares reserved for future grants | 361,841 | ||
Income tax expense (benefits) | $ 500 | $ 500 | $ (1,200) |
Conversion of nonvested cash-settled units to nonvested shares | 3,400 | 3,415 | |
Selling and general and administrative expenses | |||
Stockholders' Equity | |||
Stock-based compensation expense | 4,100 | $ 3,600 | $ 4,800 |
Restricted Stock | |||
Stockholders' Equity | |||
Unrecognized compensation expense | $ 4,100 | ||
Restricted Stock | Employee | |||
Stockholders' Equity | |||
Vesting period | 3 years | ||
Restricted Stock | Director | |||
Stockholders' Equity | |||
Vesting period | 1 year | ||
Performance-Based RSU | |||
Stockholders' Equity | |||
Vesting period | 3 years |
Stockholders' Equity - Activity
Stockholders' Equity - Activity for Time-Based Nonvested Restricted Stock and Performance-Based RSU Grants (Details) | 12 Months Ended |
Feb. 03, 2024 $ / shares shares | |
Restricted Stock | |
Nonvested Restricted Shares | |
Outstanding at the beginning of the period (in shares) | shares | 195,509 |
Granted (in shares) | shares | 272,479 |
Vested (in shares) | shares | (117,785) |
Forfeited (in shares) | shares | (39,321) |
Outstanding at the end of the period (in shares) | shares | 310,882 |
Weighted Average Grant Date Fair Value | |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 43.41 |
Granted (in dollars per share) | $ / shares | 16.97 |
Vested (in dollars per share) | $ / shares | 44.89 |
Forfeited (in dollars per share) | $ / shares | 26.39 |
Outstanding at the end of the period (in dollars per share) | $ / shares | $ 21.83 |
Performance-Based RSU | |
Nonvested Restricted Shares | |
Outstanding at the beginning of the period (in shares) | shares | 72,590 |
Granted (in shares) | shares | 107,826 |
Forfeited (in shares) | shares | (80,949) |
Outstanding at the end of the period (in shares) | shares | 99,467 |
Weighted Average Grant Date Fair Value | |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 44.60 |
Granted (in dollars per share) | $ / shares | 16.08 |
Forfeited (in dollars per share) | $ / shares | 41.65 |
Outstanding at the end of the period (in dollars per share) | $ / shares | $ 16.08 |
Stockholders' Equity - Stockhol
Stockholders' Equity - Stockholder Right Agreement (Details) - $ / shares | Feb. 03, 2024 | Dec. 06, 2023 | Jan. 28, 2023 |
Stockholders' Equity | |||
Number of share purchase right | 1 | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Series A junior participating preferred stock | 0.0001 | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | ||
Share price | $ 120 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Feb. 03, 2024 USD ($) lawsuit |
Commitments and Contingencies | |
Number of putative class action lawsuits | lawsuit | 4 |
Purchase obligations for open merchandise orders | $ 132.8 |
Accrued expenses | |
Commitments and Contingencies | |
Accrual for costs | $ 0.8 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Leases | |||
Operating lease cost | $ 62,163 | $ 60,167 | $ 52,737 |
Variable lease cost | 11,070 | 9,911 | 10,938 |
Short term lease cost | 1,598 | 1,395 | 1,091 |
Total lease cost | $ 74,831 | $ 71,473 | $ 64,766 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) $ in Thousands | Feb. 03, 2024 USD ($) |
Future minimum lease payments under operating leases | |
2024 | $ 57,012 |
2025 | 52,638 |
2026 | 41,363 |
2027 | 30,650 |
2028 | 22,674 |
Thereafter | 102,932 |
Total future minimum lease payments | 307,269 |
Less: imputed interest | (72,617) |
Total present value of lease liabilities | $ 234,652 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Operating Lease, Liability, Current, Operating Lease, Liability, Noncurrent |
Leases - Cash flow and other in
Leases - Cash flow and other information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 03, 2024 | Jan. 28, 2023 | Jan. 29, 2022 | |
Supplemental cash flow and other information related to operating leases | |||
Cash paid for operating leases | $ 68,371 | $ 56,053 | $ 56,932 |
Right of use assets obtained in exchange for new operating lease liabilities | $ 27,836 | $ 101,241 | $ 75,359 |
Weighted average remaining lease term (years) - operating leases | 7 years 6 months 14 days | 7 years 9 months 29 days | 5 years 3 months 25 days |
Weighted average discount rate - operating leases (as a percent) | 5.04% | 4.49% | 2.86% |
Leases (Details)
Leases (Details) | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 period | Apr. 30, 2022 USD ($) | Jan. 28, 2023 USD ($) | Feb. 03, 2024 | |
Leases | ||||
Lease term | 5 years | |||
Gain on sale-leasebacks | $ 64,088,000 | |||
Distribution Center Darlington, South Carolina | ||||
Leases | ||||
Sale leaseback transaction, term of lease | 20 years | |||
Sale leaseback transaction, number of additional periods | 6 | |||
Sale leaseback transaction, renewal term | 5 years | |||
Distribution Center Roland, Oklahoma | ||||
Leases | ||||
Sale leaseback transaction, term of lease | 15 years | |||
Sale leaseback transaction, number of additional periods | period | 6 | |||
Sale leaseback transaction, renewal term | 5 years | |||
Minimum | ||||
Leases | ||||
Extension term | 1 year | |||
Maximum | ||||
Leases | ||||
Extension term | 5 years |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event | Feb. 29, 2024 person |
Subsequent Event | |
Number of Board of Directors resigning | 3 |
Period of time prior to the opening of the window for the submission of stockholder director nominations for the Company's 2025 annual meeting of stockholders | 30 days |
Period of time prior to one-year anniversary of the previous annual meetings | 150 days |
Period of time between anniversary annual meetings | 1 year |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Feb. 03, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |