Citi Trends (CTRN) 10-Q 11 Dec 24 2024 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Nov. 02, 2024	Nov. 29, 2024
Document and Entity Information
Document Type	10-Q
Document Period End Date	Nov. 02, 2024
Document Quarterly Report	true
Document Transition Report	false
Securities Act File Number	000-41886
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
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		8,710,024
Current Fiscal Year End Date	--02-01
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001318484
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Nov. 02, 2024	Feb. 03, 2024
Current assets:
Cash and cash equivalents	$ 38,872	$ 79,706
Inventory	127,514	130,432
Prepaid and other current assets	13,145	10,838
Income tax receivable	3,581	4,123
Total current assets	183,112	225,099
Property and equipment, net of accumulated depreciation of $291,466 and $276,446 as of August 3, 2024 and February 3, 2024, respectively	48,878	56,231
Operating lease right of use assets	218,899	231,281
Deferred income taxes	15,301	5,105
Other assets	886	1,005
Total assets	467,076	518,721
Current liabilities:
Accounts payable	82,791	100,366
Operating lease liabilities	49,390	45,842
Accrued expenses	16,106	16,466
Accrued compensation	9,731	6,846
Layaway deposits	1,548	384
Total current liabilities	159,566	169,904
Noncurrent operating lease liabilities	175,767	188,810
Other long-term liabilities	1,473	2,301
Total liabilities	336,806	361,015
Stockholders' equity:
Common stock, $0.01 par value. Authorized 32,000,000 shares; 16,419,356 shares issued as of August 3, 2024 and 16,354,714 shares issued as of February 3, 2024; 8,615,343 shares outstanding as of August 3, 2024 and 8,550,701 shares outstanding as of February 3, 2024	162	160
Paid in capital	107,239	105,686
Retained earnings	290,080	319,071
Treasury stock, at cost; 7,804,013 shares held as of August 3, 2024 and February 3, 2024	(267,211)	(267,211)
Total stockholders' equity	130,270	157,706
Commitments and contingencies (Note 7)
Total liabilities and stockholders' equity	$ 467,076	$ 518,721

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Nov. 02, 2024	Feb. 03, 2024
Consolidated Balance Sheets
Accumulated depreciation	$ 294,363	$ 276,446
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	16,434,037	16,354,714
Common stock, shares outstanding	8,630,024	8,550,701
Treasury stock, shares	7,804,013	7,804,013

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 02, 2024	Oct. 28, 2023	Nov. 02, 2024	Oct. 28, 2023
Consolidated Statements of Operations
Net sales	$ 179,066	$ 179,520	$ 541,907	$ 532,762
Revenue, Product and Service [Extensible Enumeration]	us-gaap:ProductMember	us-gaap:ProductMember	us-gaap:ProductMember	us-gaap:ProductMember
Cost of sales (exclusive of depreciation)	$ (107,833)	$ (110,942)	$ (343,710)	$ (331,827)
Selling, general and administrative expenses	(74,730)	(69,654)	(222,721)	(210,004)
Depreciation	(4,755)	(4,749)	(14,331)	(14,138)
Asset impairment	(574)	(178)	(1,835)	(178)
Loss from operations	(8,826)	(6,003)	(40,690)	(23,385)
Interest income	482	894	1,942	2,804
Interest expense	(79)	(76)	(238)	(228)
Loss before income taxes	(8,423)	(5,185)	(38,986)	(20,809)
Income tax benefit	1,271	1,322	9,995	5,279
Net loss	$ (7,152)	$ (3,863)	$ (28,991)	$ (15,530)
Basic net loss per common share	$ (0.86)	$ (0.47)	$ (3.49)	$ (1.89)
Diluted net loss per common share	$ (0.86)	$ (0.47)	$ (3.49)	$ (1.89)
Weighted average number of shares outstanding
Basic	8,356,085	8,237,729	8,315,090	8,214,907
Diluted	8,356,085	8,237,729	8,315,090	8,214,907

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Nov. 02, 2024	Oct. 28, 2023
Operating activities:
Net loss	$ (28,991)	$ (15,530)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	14,331	14,138
Asset impairment	1,835	178
Non-cash operating lease costs	36,708	38,494
Loss on disposal of property and equipment	24	23
Deferred income taxes	(10,197)	(4,304)
Insurance proceeds related to operating activities		3,482
Non-cash stock-based compensation expense	2,434	3,002
Gain on insurance related to operating activities		(3,482)
Changes in assets and liabilities:
Inventory	2,918	(23,933)
Prepaid and other current assets	(2,307)	1,711
Other assets	120	133
Accounts payable	(17,898)	2,322
Accrued expenses and other long-term liabilities	(35,916)	(45,515)
Accrued compensation	2,885	(1,821)
Income tax receivable/payable	542	(2,691)
Layaway deposits	1,164	925
Net cash used in operating activities	(32,348)	(32,868)
Investing activities:
Purchases of property and equipment	(7,606)	(11,568)
Insurance proceeds related to investing activities		1,518
Net cash used in investing activities	(7,606)	(10,050)
Financing activities:
Cash used to settle withholding taxes on vested restricted stock	(880)	(851)
Net cash used in financing activities	(880)	(851)
Net decrease in cash and cash equivalents	(40,834)	(43,769)
Cash and cash equivalents:
Beginning of period	79,706	103,495
End of period	38,872	59,726
Supplemental disclosures of cash flow information:
Cash paid for interest	125	119
Cash (refunds) payments of income taxes	(340)	1,545
Supplemental disclosures of non-cash investing activities:
Accrual for purchases of property and equipment	$ 374	$ 841

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. 28, 2023	$ 160	$ 102,445	$ 331,050	$ (267,211)	$ 166,444
Balances (in shares) at Jan. 28, 2023	16,158,494
Balances (in shares) at Jan. 28, 2023				7,804,013
Increase (Decrease) in Stockholders' Equity
Vesting of nonvested shares	$ 1				1
Issuance of nonvested shares (in shares)	1,500
Forfeiture of nonvested shares (in shares)	(9,647)
Stock-based compensation expense		935			935
Net share settlement of nonvested shares	$ (1)	(782)			(783)
Net share settlement of nonvested shares (in shares)	(33,432)
Net (loss) income			(6,635)		(6,635)
Balances at Apr. 29, 2023	$ 160	102,598	324,415	$ (267,211)	159,962
Balances (in shares) at Apr. 29, 2023	16,116,915
Balances (in shares) at Apr. 29, 2023				7,804,013
Balances at Jan. 28, 2023	$ 160	102,445	331,050	$ (267,211)	166,444
Balances (in shares) at Jan. 28, 2023	16,158,494
Balances (in shares) at Jan. 28, 2023				7,804,013
Increase (Decrease) in Stockholders' Equity
Net (loss) income					(15,530)
Balances at Oct. 28, 2023	$ 160	104,597	315,520	$ (267,211)	153,066
Balances (in shares) at Oct. 28, 2023	16,348,358
Balances (in shares) at Oct. 28, 2023				7,804,013
Balances at Apr. 29, 2023	$ 160	102,598	324,415	$ (267,211)	159,962
Balances (in shares) at Apr. 29, 2023	16,116,915
Balances (in shares) at Apr. 29, 2023				7,804,013
Increase (Decrease) in Stockholders' Equity
Issuance of nonvested shares (in shares)	259,136
Forfeiture of nonvested shares (in shares)	(6,581)
Stock-based compensation expense		1,049			1,049
Net share settlement of nonvested shares		(26)			(26)
Net share settlement of nonvested shares (in shares)	(1,400)
Net (loss) income			(5,032)		(5,032)
Balances at Jul. 29, 2023	$ 160	103,621	319,383	$ (267,211)	155,953
Balances (in shares) at Jul. 29, 2023	16,368,070
Balances (in shares) at Jul. 29, 2023				7,804,013
Increase (Decrease) in Stockholders' Equity
Forfeiture of nonvested shares (in shares)	(17,787)
Stock-based compensation expense		1,018			1,018
Net share settlement of nonvested shares		(42)			(42)
Net share settlement of nonvested shares (in shares)	(1,925)
Net (loss) income			(3,863)		(3,863)
Balances at Oct. 28, 2023	$ 160	104,597	315,520	$ (267,211)	153,066
Balances (in shares) at Oct. 28, 2023	16,348,358
Balances (in shares) at Oct. 28, 2023				7,804,013
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
Increase (Decrease) in Stockholders' Equity
Vesting of nonvested shares	$ 1				$ 1
Issuance of nonvested shares (in shares)	2,811
Forfeiture of nonvested shares (in shares)	(5,178)
Stock-based compensation expense		884			884
Net share settlement of nonvested shares		(333)			(333)
Net share settlement of nonvested shares (in shares)	(11,618)
Net (loss) income			(3,426)		(3,426)
Balances at May. 04, 2024	$ 161	106,237	315,645	$ (267,211)	154,832
Balances (in shares) at May. 04, 2024	16,340,729
Balances (in shares) at May. 04, 2024				7,804,013
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
Increase (Decrease) in Stockholders' Equity
Net (loss) income					$ (28,991)
Balances at Nov. 02, 2024	$ 162	107,239	290,080	$ (267,211)	$ 130,270
Balances (in shares) at Nov. 02, 2024	16,434,037				16,434,037
Balances (in shares) at Nov. 02, 2024				7,804,013	7,804,013
Balances at May. 04, 2024	$ 161	106,237	315,645	$ (267,211)	$ 154,832
Balances (in shares) at May. 04, 2024	16,340,729
Balances (in shares) at May. 04, 2024				7,804,013
Increase (Decrease) in Stockholders' Equity
Vesting of nonvested shares	$ 1				1
Issuance of nonvested shares (in shares)	110,870
Issuance of vested shares (in shares)	16,373
Forfeiture of nonvested shares (in shares)	(24,845)
Stock-based compensation expense		694			694
Net share settlement of nonvested shares		(524)			(524)
Net share settlement of nonvested shares (in shares)	(23,771)
Net (loss) income			(18,413)		(18,413)
Balances at Aug. 03, 2024	$ 162	106,407	297,232	$ (267,211)	136,590
Balances (in shares) at Aug. 03, 2024	16,419,356
Balances (in shares) at Aug. 03, 2024				7,804,013
Increase (Decrease) in Stockholders' Equity
Issuance of nonvested shares under incentive plan (in shares)	19,698
Forfeiture of nonvested shares (in shares)	(3,757)
Stock-based compensation expense		$ 856			$ 856
Net share settlement of nonvested shares (in shares)	(1,260)	(24,000)			(24,000)
Net (loss) income			(7,152)		$ (7,152)
Balances at Nov. 02, 2024	$ 162	$ 107,239	$ 290,080	$ (267,211)	$ 130,270
Balances (in shares) at Nov. 02, 2024	16,434,037				16,434,037
Balances (in shares) at Nov. 02, 2024				7,804,013	7,804,013

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Nov. 02, 2024
Significant Accounting Policies
Significant Accounting Policies	1. Significant Accounting Policies Basis of Presentation 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. As of November 2, 2024, the Company operated 593 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 February 3, 2024 is derived from the audited financial statements in the Company ’ s Annual Report on Form 10-K for the fiscal year ended February 3, 2024 (the “ 2023 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 2023 Form 10-K. Results of a period shorter than a full year may not be indicative of results expected for the entire year as a result of the seasonality of our business, among other things. Fiscal Year The following contains references to fiscal years 2024 and 2023, which represent fiscal years ending or ended on February 1, 2025 and February 3, 2024, respectively. Fiscal 2024 has a 52 -week accounting period, and fiscal 2023 had a 53 -week accounting period.

Cash and Cash Equivalents_Conce

Cash and Cash Equivalents/Concentration of Credit Risk	9 Months Ended
	Nov. 02, 2024
Cash and Cash Equivalents/Concentration of Credit Risk
Cash and Cash Equivalents/Concentration of Credit Risk	2. Cash and Cash Equivalents/Concentration of Credit Risk For purposes of the condensed consolidated balance sheets and condensed consolidated statements of cash flows, the Company considers all highly liquid investments with maturities at date of purchase of three months or less to be cash equivalents. Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash and cash equivalents. The Company places its cash and cash equivalents in what it believes to be high credit quality banks and institutional money market funds. The Company maintains cash accounts that exceed federally insured limits.

Earnings per Share

Earnings per Share	9 Months Ended
	Nov. 02, 2024
Earnings per Share
Earnings per Share	3. 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 third quarter of 2024 and 2023, there were 258,000 and 318,000 shares of nonvested restricted stock, respectively, excluded from the calculation of diluted earnings per share because of antidilution. For the thirty-nine weeks ended November 2, 2024 and October 28, 2023, there were 242,000 and 259,000 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 ​ November 2, 2024 October 28, 2023 Weighted average number of common shares outstanding (basic) ​ 8,356,085 ​ 8,237,729 Incremental shares from assumed vesting of nonvested restricted stock ​ — ​ — Weighted average number of common shares and common stock equivalents outstanding (diluted) ​ 8,356,085 ​ 8,237,729 ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirty-Nine Weeks Ended ​ November 2, 2024 October 28, 2023 Weighted average number of common shares outstanding (basic) ​ 8,315,090 ​ 8,214,907 Incremental shares from assumed vesting of nonvested restricted stock ​ — ​ — Weighted average number of common shares and common stock equivalents outstanding (diluted) ​ 8,315,090 ​ 8,214,907 ​

Revolving Credit Facility

Revolving Credit Facility	9 Months Ended
	Nov. 02, 2024
Revolving Credit Facility
Revolving Credit Facility	4. 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 in April 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 November 2, 2024, the Company had no borrowings under the credit facility and $1.4 million of letters of credit outstanding. ​

Impairment of Assets

Impairment of Assets	9 Months Ended
	Nov. 02, 2024
Impairment of Assets
Impairment of Assets	5. Impairment of Assets If facts and circumstances indicate that a long-lived asset or operating lease right-of-use asset may be impaired, the carrying value is reviewed. If this review indicates that the carrying value of the asset will not be recovered as determined based on projected undiscounted cash flows related to the asset over its remaining life, the carrying value of the asset is reduced to its estimated fair value. In the third quarter of 2024, non-cash impairment expense related to underperforming stores totaled $0.6 million, comprised of $0.3 million for leasehold improvements and fixtures and equipment, and $0.3 million for operating lease right of use assets. In the third quarter of 2023, non-cash impairment expense related to underperforming stores totaled $0.2 million, primarily for leasehold improvements and fixtures and equipment. ​

Income Taxes

Income Taxes	9 Months Ended
	Nov. 02, 2024
Income Taxes
Income Taxes	6. Income Taxes The provision for income taxes for the interim period in 2024 is based on an estimate of the annual effective tax rate adjusted to reflect the impact of discrete items. Management judgment is required in projecting ordinary income to estimate the Company ’ s annual effective tax rate. For the first thirty-nine weeks of 2023 the Company used the discrete effective tax rate method to determine its tax expense based upon interim period results. The Company determined that since small changes in estimated ordinary income would result in significant changes in the estimated annual effective tax rate, the annual effective tax rate method would not have provided a reliable estimate for the first thirty-nine weeks of 2023. As of November 2, 2024, we had approximately $15.3 million in net deferred tax assets (DTA). At this time, we consider it more likely than not that we will have sufficient taxable income in the future that will allow us to realize these DTAs. If we are not able to generate sufficient taxable income to realize these DTAs, a substantial valuation allowance to reduce our U.S. DTAs may be required, which would materially increase our expenses in the period the allowance is recognized and adversely affect our results of operations. As of November 2, 2024, our net DTA includes approximately $9.3 million related to net operating loss (NOL) carryforwards that can be used to offset taxable income in future periods and reduce our income taxes payable in those future periods. NOL carryforwards may be subject to annual limitations under Internal Revenue Code Section 382 (Section 382) (or comparable provisions of foreign or state law) in the event that certain changes in ownership were to occur. In addition, tax credit carryforwards may be subject to annual limitations under Internal Revenue Code Section 383 (Section 383). We are required to evaluate our NOL and tax credit carryforwards and whether certain changes in ownership have occurred as measured under Section 382 that would limit our ability to utilize a portion of our NOL and tax credit carryforwards. If it is determined that an ownership change has occurred, there may be annual limitations on the use of these NOL and tax credit carryforwards under Sections 382 and 383 (or comparable provisions of foreign or state law).

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Nov. 02, 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, 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	9 Months Ended
	Nov. 02, 2024
Stock Repurchases
Stock Repurchases	8. Stock Repurchases 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. There were no stock repurchases in the first thirty-nine weeks of 2024 or the first thirty-nine weeks of 2023. At November 2, 2024, $50.0 million remained available under the Company ’ s stock repurchase authorization.

Revenue

Revenue	9 Months Ended
	Nov. 02, 2024
Revenue
Revenue	9. Revenue Revenue Recognition The Company ’ s primary source of revenue is derived from the sale of clothing and accessories to its customers with the Company ’ s performance obligations satisfied immediately when the customer pays for their purchase and receives the merchandise. Sales taxes collected by the Company from customers are excluded from revenue. Revenue from layaway sales is recognized at the point in time when the merchandise is paid for and control of the goods is transferred to the customer, thereby satisfying the Company ’ s performance obligation. The Company defers revenue from the sale of gift cards and recognizes the associated revenue upon the redemption of the cards by customers to purchase merchandise. ​ Sales Returns The Company allows customers to return merchandise for up to 30 days after the date of sale subject to certain conditions. Expected refunds to customers are recorded based on estimated margin using historical return information. ​ Disaggregation of Revenue The Company ’ s retail operations represent a single operating segment based on the way the Company manages its business. Operating decisions and resource allocation decisions are made at the Company level in order to maintain a consistent retail store presentation. The Company ’ s retail stores sell similar products, use similar processes to sell those products and sell their products to similar classes of customers. ​ In the following table, the Company ’ s revenue from contracts with customers is disaggregated by “ CITI ” or major merchandise category. The percentage of net sales for each CITI with the merchandise assortment was approximately: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirteen Weeks Ended ​ Thirty-Nine Weeks Ended ​ ​ November 2, October 28, November 2, October 28, ​ ​ 2024 2023 2024 2023 ​ Ladies 27 % ​ 26 % ​ 28 % ​ 27 % ​ Kids 24 % ​ 24 % ​ 23 % ​ 22 % ​ Mens 17 % ​ 17 % ​ 16 % ​ 17 % ​ Accessories & Beauty 16 % ​ 17 % ​ 16 % ​ 18 % ​ Home & Lifestyle 10 % ​ 7 % ​ 10 % ​ 8 % ​ Footwear 6 % ​ 9 % ​ 7 % ​ 8 % ​ ​

Leases

Leases	9 Months Ended
	Nov. 02, 2024
Leases
Leases	10. Leases The Company leases its retail store locations, 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. 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 ​ Thirty-Nine Weeks Ended ​ ​ November 2, 2024 ​ October 28, 2023 ​ November 2, 2024 ​ October 28, 2023 Operating lease cost ​ $ 16,441 ​ $ 15,521 ​ $ 46,232 ​ $ 46,930 Variable lease cost ​ 1,997 ​ 2,628 ​ 8,160 ​ 8,406 Short term lease cost ​ 250 ​ 393 ​ 1,344 ​ 1,171 Total lease cost ​ $ 18,688 ​ $ 18,542 ​ $ 55,736 ​ $ 56,507 ​ Future minimum lease payments as of November 2, 2024 are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ Fiscal Year Lease Costs Remainder of 2024 $ 16,535 ​ ​ 2025 ​ ​ 58,464 ​ ​ 2026 ​ 47,423 ​ ​ 2027 ​ 36,204 ​ ​ 2028 ​ 28,253 ​ ​ Thereafter ​ 108,800 ​ ​ Total future minimum lease payments ​ ​ 295,679 ​ ​ Less: imputed interest ​ ​ (70,522) (1) ​ Total present value of lease liabilities ​ $ 225,157 (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): ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirty-Nine Weeks Ended ​ ​ November 2, 2024 ​ October 28, 2023 Cash paid for operating leases $ 46,735 ​ $ 52,734 Right of use assets obtained in exchange for new operating lease liabilities ​ $ 25,182 ​ $ 22,322 ​ ​ ​ ​ ​ Weighted average remaining lease term (years) - operating leases ​ 7.31 ​ 7.60 Weighted average discount rate - operating leases ​ ​ 5.47% ​ ​ 4.90% ​

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Nov. 02, 2024
Recent Accounting Pronouncements
Recent Accounting Pronouncements	11. Recent Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, “ Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ” ( “ ASU 2023-07 ” ), which expands reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 requires disclosure of (i) significant segment expenses that are regularly provided to the CODM and included within the segment measure of profit or loss, (ii) an amount and description of its composition for other segment items to reconcile to segment profit or loss, and (iii) the title and position of the Company ’ s CODM. The ASU does not change how a public entity identifies its operating segments, aggregates them, or applies the quantitative thresholds to determine its reportable segments. The new standard will be effective on a retrospective basis for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the ASU to determine the impact of the amended guidance. In December 2023, the FASB issued ASU 2023-09, “ Income Taxes (Topic 740): Improvements to Income Tax Disclosures ” ( “ ASU 2023-09 ” ). The amendments in ASU 2023-09 require public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. The new standard will be effective on a prospective basis for fiscal years beginning after December 15, 2024 and interim periods therein, with early adoption permitted. The Company is currently evaluating the ASU to determine the impact of the amended guidance.

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Nov. 02, 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

Summary of Significant Accounti

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Nov. 02, 2024
Significant Accounting Policies
Basis of Presentation	Basis of Presentation 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. As of November 2, 2024, the Company operated 593 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 February 3, 2024 is derived from the audited financial statements in the Company ’ s Annual Report on Form 10-K for the fiscal year ended February 3, 2024 (the “ 2023 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 2023 Form 10-K. Results of a period shorter than a full year may not be indicative of results expected for the entire year as a result of the seasonality of our business, among other things.
Fiscal Year	Fiscal Year The following contains references to fiscal years 2024 and 2023, which represent fiscal years ending or ended on February 1, 2025 and February 3, 2024, respectively. Fiscal 2024 has a 52 -week accounting period, and fiscal 2023 had a 53 -week accounting period.

Earnings per Share (Tables)

Earnings per Share (Tables)	9 Months Ended
	Nov. 02, 2024
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 ​ November 2, 2024 October 28, 2023 Weighted average number of common shares outstanding (basic) ​ 8,356,085 ​ 8,237,729 Incremental shares from assumed vesting of nonvested restricted stock ​ — ​ — Weighted average number of common shares and common stock equivalents outstanding (diluted) ​ 8,356,085 ​ 8,237,729 ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirty-Nine Weeks Ended ​ November 2, 2024 October 28, 2023 Weighted average number of common shares outstanding (basic) ​ 8,315,090 ​ 8,214,907 Incremental shares from assumed vesting of nonvested restricted stock ​ — ​ — Weighted average number of common shares and common stock equivalents outstanding (diluted) ​ 8,315,090 ​ 8,214,907 ​

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Nov. 02, 2024
Revenue
Schedule of revenue from contracts with customers disaggregated by major product line	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirteen Weeks Ended ​ Thirty-Nine Weeks Ended ​ ​ November 2, October 28, November 2, October 28, ​ ​ 2024 2023 2024 2023 ​ Ladies 27 % ​ 26 % ​ 28 % ​ 27 % ​ Kids 24 % ​ 24 % ​ 23 % ​ 22 % ​ Mens 17 % ​ 17 % ​ 16 % ​ 17 % ​ Accessories & Beauty 16 % ​ 17 % ​ 16 % ​ 18 % ​ Home & Lifestyle 10 % ​ 7 % ​ 10 % ​ 8 % ​ Footwear 6 % ​ 9 % ​ 7 % ​ 8 % ​ ​

Leases (Tables)

Leases (Tables)	9 Months Ended
	Nov. 02, 2024
Leases
Schedule of lease expense	Lease costs consisted of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirteen Weeks Ended ​ Thirty-Nine Weeks Ended ​ ​ November 2, 2024 ​ October 28, 2023 ​ November 2, 2024 ​ October 28, 2023 Operating lease cost ​ $ 16,441 ​ $ 15,521 ​ $ 46,232 ​ $ 46,930 Variable lease cost ​ 1,997 ​ 2,628 ​ 8,160 ​ 8,406 Short term lease cost ​ 250 ​ 393 ​ 1,344 ​ 1,171 Total lease cost ​ $ 18,688 ​ $ 18,542 ​ $ 55,736 ​ $ 56,507
Schedule of future minimum rent payments under operating leases	​ ​ ​ ​ ​ ​ ​ Fiscal Year Lease Costs Remainder of 2024 $ 16,535 ​ ​ 2025 ​ ​ 58,464 ​ ​ 2026 ​ 47,423 ​ ​ 2027 ​ 36,204 ​ ​ 2028 ​ 28,253 ​ ​ Thereafter ​ 108,800 ​ ​ Total future minimum lease payments ​ ​ 295,679 ​ ​ Less: imputed interest ​ ​ (70,522) (1) ​ Total present value of lease liabilities ​ $ 225,157 (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): ​ ​ ​ ​ ​ ​ ​ ​ ​ Thirty-Nine Weeks Ended ​ ​ November 2, 2024 ​ October 28, 2023 Cash paid for operating leases $ 46,735 ​ $ 52,734 Right of use assets obtained in exchange for new operating lease liabilities ​ $ 25,182 ​ $ 22,322 ​ ​ ​ ​ ​ Weighted average remaining lease term (years) - operating leases ​ 7.31 ​ 7.60 Weighted average discount rate - operating leases ​ ​ 5.47% ​ ​ 4.90% ​

Significant Accounting Polici_2

Significant Accounting Policies (Details)	12 Months Ended
	Feb. 01, 2025	Feb. 03, 2024	Nov. 02, 2024 state store
Significant Accounting Policies
Number of stores operated | store			593
Number of states in which company operates | state			33
Length of fiscal year	364 days	371 days

Earnings per Share (Details)

Earnings per Share (Details) - shares	3 Months Ended		9 Months Ended
	Nov. 02, 2024	Oct. 28, 2023	Nov. 02, 2024	Oct. 28, 2023
Reconciliation of average number of common shares outstanding used to calculate basic and diluted earnings per share
Weighted average number of common shares outstanding (basic)	8,356,085	8,237,729	8,315,090	8,214,907
Weighted average number of common shares and common stock equivalents outstanding (diluted)	8,356,085	8,237,729	8,315,090	8,214,907
Restricted Stock
Antidilutive securities
Shares excluded from the calculation of diluted earnings per share	258,000	318,000	242,000	259,000

Revolving Line of Credit (Detai

Revolving Line of Credit (Details) $ in Thousands		1 Months Ended
	Oct. 27, 2011 USD ($)	May 31, 2023 USD ($) agreement	Nov. 02, 2024 USD ($)
Line of Credit
Revolving Line of Credit
Term of credit facility	5 years
Maximum borrowing capacity	$ 50,000	$ 75,000
Borrowing capacity, accordion feature		25,000
Maximum borrowing capacity including accordion expansion		$ 100,000
Number of covenants | agreement		1
Unused commitment fee (as a percent)		0.20%
Debt outstanding			$ 0
Line of Credit | Secured Overnight Financing Rate
Revolving Line of Credit
Increase pricing for loans (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
Revolving Line of Credit
Increase pricing for loans (as a percent)		1%
Letter of Credit
Revolving Line of Credit
Debt outstanding			$ 1,400
First interest rate | Line of Credit | Eurodollar
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
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
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%

Impairment of Assets (Details)

Impairment of Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 02, 2024	Oct. 28, 2023	Nov. 02, 2024	Oct. 28, 2023
Impairment of Assets
Asset impairment	$ 574	$ 178	$ 1,835	$ 178
Leasehold improvements and fixtures and equipment impairment	300
Operating lease right-of-use asset impairment	$ 300

Income Taxes - Deferred Tax Ass

Income Taxes - Deferred Tax Asset (Details) $ in Millions	Nov. 02, 2024 USD ($)
Income Taxes
Deferred tax asset, net	$ 15.3
Net operating loss ("NOL") carryforwards	$ 9.3

Stock Repurchases (Details)

Stock Repurchases (Details) $ in Millions	Nov. 02, 2024 USD ($)
Stock Repurchases
Remaining value of shares available for repurchase	$ 50

Revenue - Returns and Disaggreg

Revenue - Returns and Disaggregation of Revenue (Details)	3 Months Ended		9 Months Ended
	Nov. 02, 2024	Oct. 28, 2023	Nov. 02, 2024	Oct. 28, 2023
Disaggregation of Revenue
Period of time company allows customers to return merchandise			30 days
Ladies
Disaggregation of Revenue
Revenue from contracts with customers disaggregated by major product line (as a percent)	27%	26%	28%	27%
Kids
Disaggregation of Revenue
Revenue from contracts with customers disaggregated by major product line (as a percent)	24%	24%	23%	22%
Mens
Disaggregation of Revenue
Revenue from contracts with customers disaggregated by major product line (as a percent)	17%	17%	16%	17%
Accessories & Beauty
Disaggregation of Revenue
Revenue from contracts with customers disaggregated by major product line (as a percent)	16%	17%	16%	18%
Home & Lifestyle
Disaggregation of Revenue
Revenue from contracts with customers disaggregated by major product line (as a percent)	10%	7%	10%	8%
Footwear
Disaggregation of Revenue
Revenue from contracts with customers disaggregated by major product line (as a percent)	6%	9%	7%	8%

Leases (Details)

Leases (Details)	Nov. 02, 2024
Leases
Lease term	5 years
Minimum
Leases
Extension term	1 year
Maximum
Leases
Extension term	5 years

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 02, 2024	Oct. 28, 2023	Nov. 02, 2024	Oct. 28, 2023
Leases
Operating lease cost	$ 16,441	$ 15,521	$ 46,232	$ 46,930
Variable lease cost	1,997	2,628	8,160	8,406
Short term lease cost	250	393	1,344	1,171
Total lease cost	$ 18,688	$ 18,542	$ 55,736	$ 56,507

Leases - Future Minimum Lease P

Leases - Future Minimum Lease Payments (Details) $ in Thousands	Nov. 02, 2024 USD ($)
Future minimum lease payments under operating leases
Remainder of 2024	$ 16,535
2025	58,464
2026	47,423
2027	36,204
2028	28,253
Thereafter	108,800
Total future minimum lease payments	295,679
Less: imputed interest	(70,522)
Total present value of lease liabilities	$ 225,157
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	9 Months Ended
	Nov. 02, 2024	Oct. 28, 2023
Supplemental cash flow and other information related to operating leases
Cash paid for operating leases	$ 46,735	$ 52,734
Right of use assets obtained in exchange for new operating lease liabilities	$ 25,182	$ 22,322
Weighted average remaining lease term (years) - operating leases	7 years 3 months 21 days	7 years 7 months 6 days
Weighted average discount rate - operating leases (as a percent)	5.47%	4.90%