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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Jan. 28, 2012	Mar. 20, 2012	Jul. 29, 2011
Document and Entity Information
Entity Registrant Name	Citi Trends Inc
Entity Central Index Key	0001318484
Document Type	10-K
Document Period End Date	Jan. 28, 2012
Amendment Flag	false
Current Fiscal Year End Date	--01-28
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 205,071,310
Entity Common Stock, Shares Outstanding		14,929,221
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	FY

Consolidated Balance Sheets - USD ($) $ in Thousands	Jan. 28, 2012	Jan. 29, 2011
Current assets:
Cash and cash equivalents	$ 41,986	$ 69,231
Short-term investment securities	902	586
Inventory	131,526	121,432
Prepaid and other current assets	10,522	11,238
Income tax receivable	11,195	524
Deferred tax asset	5,829	4,907
Assets held for sale	1,415
Total current assets	203,375	207,918
Property and equipment, net	90,541	85,299
Long-term investment securities	18,840	9,205
Goodwill		1,371
Deferred tax asset	1,223	2,001
Other assets	798	608
Total assets	314,777	306,402
Current liabilities:
Accounts payable	78,941	67,934
Accrued expenses	15,729	14,587
Accrued compensation	10,345	8,597
Layaway deposits	603	444
Total current liabilities	105,618	91,562
Other long-term liabilities	12,756	10,036
Total liabilities	118,374	101,598
Stockholders' equity:
Common stock, $0.01 par value. Authorized 32,000,000 shares; 15,062,300 shares issued as of January 28, 2012 and 14,989,535 shares issued as of January 29, 2011; 14,896,550 shares outstanding as of January 28, 2012 and 14,823,785 shares outstanding as of January 29, 2011	148	147
Paid in capital	78,588	76,976
Retained earnings	117,832	127,846
Treasury stock, at cost; 165,750 shares as of January 28, 2012 and January 29, 2011	(165)	(165)
Total stockholders' equity	196,403	204,804
Commitments and contingencies (note 11)
Total liabilities and stockholders' equity	$ 314,777	$ 306,402

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jan. 28, 2012	Jan. 29, 2011
Consolidated Balance Sheets
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, Authorized shares	32,000,000	32,000,000
Common stock, shares issued	15,062,300	14,989,535
Common stock, shares outstanding	14,896,550	14,823,785
Treasury stock, shares	165,750	165,750

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 28, 2012	Jan. 29, 2011	Jan. 30, 2010
Net sales	$ 640,824	$ 622,528	$ 551,869
Cost of sales	420,321	383,318	338,898
Gross profit	220,503	239,210	212,971
Selling, general and administrative expenses	207,025	187,231	165,166
Depreciation and amortization	24,958	20,324	18,319
Asset impairment	6,514	211	112
(Loss) income from operations	(17,994)	31,444	29,374
Interest income	243	174	404
Interest expense	(79)	(24)	(92)
(Loss) income before income taxes	(17,830)	31,594	29,686
Income tax (benefit) expense	(7,816)	10,742	9,969
Net (loss) income	$ (10,014)	$ 20,852	$ 19,717
Basic net (loss) income per common share (in dollars per share)	$ (0.69)	$ 1.44	$ 1.36
Diluted net (loss) income per common share (in dollars per share)	$ (0.69)	$ 1.44	$ 1.36
Weighted average number of shares outstanding
Basic (in shares)	14,589	14,503	14,364
Diluted (in shares)	14,589	14,523	14,396

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jan. 28, 2012	Jan. 29, 2011	Jan. 30, 2010
Operating activities:
Net (loss) income	$ (10,014)	$ 20,852	$ 19,717
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	24,958	20,324	18,319
Asset impairment	6,514	211	112
Deferred income taxes	(144)	98	(1,079)
Loss on disposal of property and equipment	320	161	260
Noncash stock-based compensation expense	2,573	3,095	2,495
Decrease (increase) in excess tax benefits from stock-based payment arrangements	268	(383)	(570)
Changes in assets and liabilities:
Inventory	(10,094)	(20,558)	(14,615)
Prepaid and other current assets	716	(829)	216
Other assets	(190)	(91)	(112)
Accounts payable	11,007	5,228	10,411
Accrued expenses and other long-term liabilities	5,221	420	1,120
Accrued compensation	1,748	(903)	1,986
Income tax receivable/payable	(10,939)	(3,165)	2,912
Layaway deposits	159	(201)	81
Net cash provided by operating activities	22,103	24,259	41,253
Investing activities:
Purchases of investment securities	(11,380)	(17,497)
Sales/redemptions of investment securities	1,429	40,731	10,800
Purchases of property and equipment	(38,437)	(40,769)	(22,097)
Net cash used in investing activities	(48,388)	(17,535)	(11,297)
Financing activities:
(Decrease) increase in excess tax benefits from stock-based payment arrangements	(268)	383	570
Repayments on capital lease obligations			(1,403)
Cash used to settle withholding taxes on stock option exercises and the vesting of nonvested restricted stock	(732)	(1,123)	(489)
Proceeds from the exercise of stock options	40	254	843
Net cash used in financing activities	(960)	(486)	(479)
Net (decrease) increase in cash and cash equivalents	(27,245)	6,238	29,477
Cash and cash equivalents:
Beginning of year	69,231	62,993	33,516
End of year	41,986	69,231	62,993
Supplemental disclosures of cash flow information:
Cash paid for interest	54	3	72
Cash paid for income taxes	3,267	13,809	8,136
Supplemental disclosures of noncash financing and investing activities:
(Decrease) increase in accrual for purchases of property and equipment	$ (1,359)	$ 1,435	$ 1,524

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Paid in Capital	Retained Earnings	Treasury Stock
Balances at Jan. 31, 2009	$ 158,207	$ 145	$ 70,950	$ 87,277	$ (165)
Balances (in shares) at Jan. 31, 2009		14,698,852			165,750
Increase (Decrease) in Stockholders' Equity
Exercise of stock options	843	$ 1	842
Exercise of stock options (in shares)		79,197
Increase (Decrease) in excess tax benefits from stock based payment arrangements	570		570
Issuance of nonvested shares to employees and directors under incentive plan (in shares)		159,998
Forfeiture of nonvested shares by employees and directors (in shares)		(18,274)
Stock-based compensation expense	2,495		2,495
Net share settlement of nonvested shares	(489)		(489)
Net share settlement of nonvested shares (in shares)		(20,196)
Net income (loss)	19,717			19,717
Balances at Jan. 30, 2010	181,343	$ 146	74,368	106,994	$ (165)
Balances (in shares) at Jan. 30, 2010		14,899,577			165,750
Increase (Decrease) in Stockholders' Equity
Exercise of stock options	254	$ 1	253
Exercise of stock options (in shares)		28,055
Increase (Decrease) in excess tax benefits from stock based payment arrangements	383		383
Issuance of nonvested shares to employees and directors under incentive plan (in shares)		141,092
Forfeiture of nonvested shares by employees and directors (in shares)		(43,705)
Stock-based compensation expense	3,095		3,095
Net share settlement of nonvested shares	(1,123)		(1,123)
Net share settlement of nonvested shares (in shares)		(35,484)
Net income (loss)	20,852			20,852
Balances at Jan. 29, 2011	$ 204,804	$ 147	76,976	127,846	$ (165)
Balances (in shares) at Jan. 29, 2011	14,989,535	14,989,535			165,750
Increase (Decrease) in Stockholders' Equity
Exercise of stock options	$ 40	$ 1	39
Exercise of stock options (in shares)		13,049
Increase (Decrease) in excess tax benefits from stock based payment arrangements	(268)		(268)
Issuance of nonvested shares to employees and directors under incentive plan (in shares)		242,277
Forfeiture of nonvested shares by employees and directors (in shares)		(149,600)
Stock-based compensation expense	2,573		2,573
Net share settlement of options	(61)		(61)
Net share settlement of nonvested shares	(671)		(671)
Net share settlement of nonvested shares (in shares)		(32,961)
Net income (loss)	(10,014)			(10,014)
Balances at Jan. 28, 2012	$ 196,403	$ 148	$ 78,588	$ 117,832	$ (165)
Balances (in shares) at Jan. 28, 2012	15,062,300	15,062,300			165,750

Organization and Business

12 Months Ended

Jan. 28, 2012

Organization and Business

Organization and Business

(1) Organization and Business

Citi Trends, Inc. and its subsidiary (the “Company”) operate as a value-priced retailer of urban fashion apparel and accessories for the entire family. As of January 28, 2012, the Company operated 511 stores in 29 states.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 2-6
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Name Statement of Position (SOP)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Paragraph 4, 14, 15
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+ Details

Summary of Significant Accounting Policies

12 Months Ended

Jan. 28, 2012

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

(2) Summary of Significant Accounting Policies

(a) Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All intercompany transactions and balances have been eliminated in consolidation.

(b) Fiscal Year

The Company’s fiscal year ends on the Saturday closest to January 31 of each year. The years ended January 28, 2012, January 29, 2011, and January 30, 2010 are referred to as fiscal 2011, fiscal 2010, and fiscal 2009, respectively, in the accompanying consolidated financial statements. Each of these three fiscal years is comprised of 52 weeks.

(c) Cash and Cash Equivalents/Concentration of Credit Risk

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

(d) Inventory

Inventory is stated at the lower of cost (first-in, first-out basis) or market as determined by the retail inventory method for store inventory and the average cost method for distribution center inventory. Under the retail inventory method, the cost of inventory is determined by calculating a cost-to-retail ratio and applying it to the retail value of inventory. Merchandise markdowns are reflected in the inventory valuation when the retail price of an item is lowered in the stores. Inventory is recorded net of an allowance for shrinkage based on the most recent physical inventory counts.

(e) Property and Equipment, net

Property and equipment, net are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the lesser of the estimated useful lives (primarily three to five years for computer equipment and furniture, fixtures and equipment, five years for leasehold improvements, seven years for major purchased software systems, and fifteen to twenty years for buildings and building improvements) of the related assets or the relevant lease term.

(f) Goodwill

Goodwill represents the excess of the purchase price over the fair value of assets acquired. Goodwill acquired in a purchase business combination and determined to have an indefinite useful life is not amortized, but instead tested for impairment at least annually or more frequently if events occur or circumstances change which would, more likely than not, reduce the fair value of a reporting unit below its carrying value.

(g) Impairment of Long-Lived Assets

If facts and circumstances indicate that a long-lived asset may be impaired, the carrying value is reviewed. If this review indicates that the carrying value of the asset will not be recovered as determined based on projected undiscounted cash flows related to the asset over its remaining life, the carrying value of the asset is reduced to its estimated fair value.

(h) Insurance Liabilities

The Company is largely self-insured for workers’ compensation costs and employee medical claims. 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.

(i) Stock-Based Compensation

The Company recognizes compensation expense associated with all nonvested restricted stock and stock options based on an estimate of the grant-date fair value of each equity award. Grants of nonvested restricted stock are valued based on the closing stock price on the grant date, while the fair values of options issued are estimated at each grant date using the Black-Scholes Merton option pricing model. See Note 10 for additional information on the Company’s stock-based compensation plans.

(j) Revenue Recognition

Revenue from retail sales net of sales taxes is recognized at the time the customer takes possession of and pays for merchandise, less an allowance for returns. The Company allows customers to return merchandise for up to thirty days after the date of sale and the Company reduces revenues for each fiscal year using a combination of actual and estimated return information for the returns in the thirty days after the year ends. The provision for returns was $0.2 million as of January 28, 2012 and January 29, 2011. Revenue from layaway sales is recognized when the customer has paid for and received the merchandise. If the merchandise is not fully paid for within sixty days, the customer is given a store credit for merchandise payments made, less a re-stocking and layaway service fee. Such fees, which are non-refundable, are recognized in revenue when collected. The introduction of gift cards to all stores was completed in early 2010. Proceeds from the sale of gift cards are deferred until the customers use the cards to purchase merchandise. No amounts have yet been amortized into income for gift cards not expected to be redeemed (“breakage”) due to the lack of time that has lapsed since cards began being sold under the recently implemented program. All sales are from cash, check or major credit card company transactions. The Company does not offer company-sponsored customer credit accounts.

(k) Cost of Sales

Cost of sales includes the cost of inventory sold during the period and transportation costs, including inbound freight related to inventory sold and freight from the distribution centers to the stores, net of discounts and allowances. Distribution center costs, store occupancy expenses and advertising expenses are not considered components of cost of sales and are included as part of selling, general and administrative expenses.

(l) Earnings per Share

Basic earnings per common share amounts are calculated using the weighted average number of common shares outstanding for the period. Diluted earnings per common share amounts are calculated using the weighted average number of common shares outstanding plus the additional dilution for all potentially dilutive securities, such as nonvested restricted stock and stock options. During loss periods, diluted loss per share amounts are based on the weighted average number of common shares outstanding because the inclusion of common stock equivalents would be antidilutive.

The following table provides a reconciliation of the number of average common shares outstanding used to calculate basic earnings per share to the number of common shares and common stock equivalents outstanding used in calculating diluted earnings per share for fiscal 2011, 2010, and 2009:

	2011	2010	2009
Average number of common shares outstanding	14,589,247	14,503,418	14,363,894
Incremental shares from assumed exercises of stock options	—	17,208	31,711
Incremental shares from assumed vesting of nonvested restricted stock	—	2,036	—
Average number of common shares and common stock equivalents outstanding	14,589,247	14,522,662	14,395,605

The dilutive effect of stock-based compensation arrangements is accounted for using the treasury stock method. This method assumes that the proceeds the Company receives from the exercise of stock options are used to repurchase common shares in the market. The Company includes as assumed proceeds the amount of compensation cost attributed to future services and not yet recognized, and the amount of tax benefits, if any, that would be credited to additional paid-in capital assuming exercise of outstanding options and vesting of nonvested restricted stock. For fiscal 2011, 2010, and 2009, respectively, there were 53,000, 53,000, and 65,000 options outstanding to purchase shares of common stock excluded from the calculation of diluted earnings per share because of antidilution.

On February 1, 2009, the Company changed its method of computing earnings per share as required by the newly issued Financial Accounting Standards Board (“FASB”) Staff Position Emerging Issues Task Force (“EITF”) 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions are Participating Securities (“FSP EITF 03-6-1”). This EITF was subsequently codified under the FASB Accounting Standards Codification, as issued in June 2009, into FASB ASC Topic 260-10, Earnings Per Share. This pronouncement addresses determinations as to whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings allocation in computing earnings per share under the required two-class method. Nonvested restricted stock awards granted to employees and non-employee directors contained nonforfeitable dividend rights prior to October 31, 2009, when amendments agreed to between the Company and its associates became effective. Such amendments resulted in the dividend rights being forfeitable in the event an associate leaves the employ of the Company prior to the vesting of the restricted stock awards. Accordingly, such awards were considered participating securities through the third quarter of fiscal 2009; however, have not been treated as participating securities since that time.

(m) Advertising

The Company expenses advertising as incurred. Advertising expense for fiscal 2011, 2010 and 2009 was $3.2 million, $2.7 million and $2.6 million, respectively.

(n) Operating Leases

The Company leases all of its store properties and accounts for the leases as operating leases. Many lease agreements contain tenant improvement allowances, rent holidays, rent escalation clauses and/or contingent rent provisions. For purposes of recognizing incentives and minimum rent expense on a straight-line basis over the terms of the leases, the Company uses the date of initial possession to begin amortization, which is generally when the Company enters the space and begins to make improvements in preparation of intended use.

For scheduled rent escalation clauses during the lease terms or for rental payments commencing “rent holidays” at a date other than the date of initial occupancy, the Company records minimum rent expense on a straight-line basis over the terms of the leases. Tenant improvement allowances are included in accrued expenses (current portion) and other long-term liabilities (noncurrent portion) and are amortized over the lease term. Changes in the balances of tenant improvement allowances are included as a component of operating activities in the consolidated statements of cash flows.

Certain leases provide for contingent rents that are not measurable at inception. These contingent rents are primarily based on a percentage of net sales that are in excess of a predetermined level. These amounts are excluded from minimum rent and are included in the determination of total rent expense when it is probable that the expense has been incurred and the amount is reasonably estimable.

The Company is required to recognize a liability for the fair value of a conditional asset retirement obligation when incurred if the liability’s fair value can be reasonably estimated. As of January 28, 2012 and January 29, 2011, the Company included a liability of $0.7 million and $0.6 million, respectively, in other long-term liabilities, representing estimated expenses that would be incurred upon the termination of the Company’s operating leases.

(o) Store Opening and Closing Costs

New and relocated store opening period costs are charged directly to expense when incurred. When the Company decides to close or relocate a store, the Company records an expense for the present value of expected future rent payments, net of sublease income, if any, in the period that a store closes or relocates. All store opening and closing costs are included in selling, general and administrative expenses on the consolidated statements of operations.

(p) 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.

(q) Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and use assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The most significant estimates made by management include those used in the valuation of inventory, property and equipment, self-insurance liabilities, leases and income taxes. Management periodically evaluates estimates used in the preparation of the consolidated financial statements for continued reasonableness. Appropriate adjustments, if any, to the estimates used are made prospectively based on such periodic evaluations.

(r) Business Reporting Segments

The Company is a value-priced retailer of urban fashion apparel and accessories for the entire family. The Company’s executive officers review performance and the allocation of resources on a store by store basis. Because the Company operates one business activity and the level of review by the Company’s executive officers is on a store by store basis, the Company has determined that its operations are within one reportable segment. Accordingly, financial information on industry segments is not applicable. All sales and assets are located within the United States.

(s) Recent Accounting Pronouncements

In May 2011, the FASB issued ASU No. 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS,” which amends U.S. GAAP to conform with measurement and disclosure requirements in International Financial Reporting Standards (“IFRS”). The amendments change the wording used to describe the requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements, and they include those that clarify the Board’s intent about the application of existing fair value measurement and disclosure requirements and those that change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements. In addition, to improve consistency in application across jurisdictions, some changes in wording are necessary to ensure that U.S. GAAP and IFRS fair value measurement and disclosure requirements are described in the same way (for example, using the word shall rather than should to describe the requirements in U.S. GAAP). The amendments in this standard are to be applied prospectively and are effective during interim and annual periods beginning after December 15, 2011, which would be the first quarter of fiscal 2012 for the Company. The Company does not believe ASU No. 2011-04 will have a significant impact on its consolidated financial statements.

(t) Reclassification

A reclassification has been made to the fiscal 2010 and 2009 Consolidated Statements of Operations and Consolidated Statements of Cash Flows to present asset impairment expense as a separate line item rather than within depreciation expense, consistent with the presentation for fiscal 2011.

Impairment

12 Months Ended

Jan. 28, 2012

Impairment

Impairment

(3) Impairment

Goodwill

Goodwill impairment is determined using a two-step process. The first step is to identify if a potential impairment exists by comparing the Company’s fair value with its carrying amount, including goodwill. In the Company’s case, there is only one reporting unit, therefore, fair value and carrying value used in the test are at the consolidated level. If fair value exceeds the carrying amount, goodwill is not considered to have a potential impairment and the second step of the impairment test is not necessary.

The goodwill impairment testing done as of January 28, 2012 indicated that the Company’s carrying value exceeded fair value, requiring that the second step of the test be performed. The second step compares the carrying value of goodwill to an implied fair value of goodwill, which is derived by performing a hypothetical purchase price allocation for the Company as of year-end, allocating the Company’s estimated fair value to its assets and liabilities. The residual amount, if any, from performing this allocation represents the implied fair value of goodwill, and if such value is less than the carrying value of goodwill, an impairment charge is recorded for the difference. The results of the second step of the test indicated that goodwill, totaling $1.4 million, should be fully impaired, resulting in a non-cash charge to asset impairment expense in the fourth quarter of fiscal 2011. The Company performed this analysis at the end of fiscal 2010 and no impairment was indicated.

Long-Lived Assets

Non-cash impairment expense related to leasehold improvements and fixtures and equipment at 39 underperforming stores totaled $5.1 million in fiscal 2011. Impairment losses totaled $0.2 million and $0.1 million in fiscal 2010 and 2009, respectively.

Closure of Distribution Center

12 Months Ended

Jan. 28, 2012

Closure of Distribution Center

Closure of Distribution Center

(4) Closure of Distribution Center

The Company closed its distribution center in Savannah, Georgia in June 2011. A real estate broker has been engaged to sell the Savannah land and building; accordingly, the net book value of the related assets has been classified as assets held for sale in the January 28, 2012 consolidated balance sheet. The closure of the distribution center required the Company to test the asset for potential impairment. The Company evaluated the fair value of the distribution center, including estimates by real estate brokers, and determined that estimated fair value is in excess of the $1.4 million net book value, therefore, no impairment charge is necessary.

In connection with the closure of the distribution center, the Company incurred $0.6 million of expenses in fiscal 2011, and such amount has been recorded in selling, general and administrative expenses within the consolidated statement of operations for the year ended January 28, 2012.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References + Details

Property and Equipment, net

12 Months Ended

Jan. 28, 2012

Property and Equipment, net

Property and Equipment, net

(5) Property and Equipment, net

The components of property and equipment as of January 28, 2012 and January 29, 2011 are as follows (in thousands):

	January 28,			January 29,
	2012			2011
Land	$	246		$	1,056
Buildings	21,893			22,713
Leasehold improvements	70,809			58,676
Furniture, fixtures and equipment	91,649			74,741
Computer equipment	22,323			19,818
Construction in progress	2,496			2,925
	209,416			179,929
Accumulated depreciation and amortization	(118,875		)	(94,630		)
	$	90,541		$	85,299

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

Fair Value Measurements

12 Months Ended

Jan. 28, 2012

Fair Value Measurements

Fair Value Measurements

(6) Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal or most advantageous market at the measurement date. Fair value is established according to a hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.

Level 3: Unobservable inputs are used when little or no market data is available. Level 3 inputs are given the lowest priority in the fair value hierarchy.

As of January 28, 2012, the Company’s investment securities are classified as held-to-maturity since the Company has the intent and ability to hold the investments to maturity. Such securities are carried at amortized cost plus accrued interest and consist of the following (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Short-term:
Bank certificates of deposit (Level 2)	$	902	$	1	$	—	$	903
Long-term:
Obligations of the U. S. Treasury (Level 1)	$	4,986	$	77	$	—	$	5,063
Obligations of states and municipalities (Level 2)	1,809		19		—		1,828
Bank certificates of deposit (Level 2)	12,045		—		1		12,044
	$	18,840	$	96	$	1	$	18,935

The amortized cost and fair market value of investment securities as of January 28, 2012 by contractual maturity are as follows (in thousands):

	Amortized Cost		Fair Market Value
Mature in one year or less	$	902	$	903
Mature after one year through five years	18,840		18,935
	$	19,742	$	19,838

As of January 29, 2011, the Company’s investment securities were classified as held-to-maturity and consisted of the following (in thousands):

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
Short-term:
Obligations of states and municipalities (Level 2)	$	586	$	—	$	—	$	586
Long-term:
Obligations of the U. S. Treasury (Level 1)	$	4,978	$	14	$	—	$	4,992
Bank certificates of deposit (Level 2)	4,227		—		—		4,227
	$	9,205	$	14	$	—	$	9,219

The amortized cost and fair market value of investment securities as of January 29, 2011 by contractual maturity were as follows (in thousands):

	Amortized Cost		Fair Market Value
Due in one year or less	$	586	$	586
Due after one year through five years	9,205		9,219
	$	9,791	$	9,805

There were no changes among the levels in the three fiscal years ended January 28, 2012.

Fair market values of Level 2 investments are determined by management with the assistance of a third party pricing service. Since quoted prices in active markets for identical assets are not available, these prices are determined by the third party pricing service using observable market information such as quotes from less active markets and quoted prices of similar securities.

The Company held investments in municipal auction rate securities (“ARS”) issued by student loan funding organizations at the time the ARS market experienced a disruption in liquidity in February 2008. Since that time, all of the ARS have been redeemed at par value by the original issuers and the Company’s investment banks, with the final redemptions occurring on June 30, 2010 in connection with the Company’s exercise of a put option offered by one of the investment banks. The Company did not incur any losses as the result of the ARS redemptions.

The following table provides a summary of changes in fair value of the Company’s ARS for the years ended January 29, 2011 and January 30, 2010 (in thousands):

	Level 3
	Put Option Related to ARS			Auction Rate Securities
Balance as of January 31, 2009	$	4,901		$	38,924
Unrealized (losses) gains included in earnings	(347		)	347
Sales/redemptions of investment securities	(1,247		)	(9,553		)
Balance as of January 30, 2010	3,307			29,718
Unrealized (losses) gains included in earnings	62			(62		)
Sales/redemptions of investment securities	(3,369		)	(29,656		)
Balance as of January 29, 2011	$	—		$	—

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44A, 44B
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15C, 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-Subparagraph a-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32, 33, 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 17-22, 27, 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19207-110258

Reference 9: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13537-108611

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-Name Accounting Standards Codification
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-Section 50
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612

Reference 11: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Publisher FASB
-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19296-110258

+ Details

Revolving Line of Credit

12 Months Ended

Jan. 28, 2012

Revolving Line of Credit

Revolving Line of Credit

(7) Revolving Line of Credit

On October 27, 2011, the Company entered into a new, five-year, $50 million credit facility with Bank of America to replace its prior $20 million credit facility. The new facility includes a $25 million uncommitted “accordion” feature that under certain circumstances could allow the Company to increase the size of the facility to $75 million. Borrowings, if any, under the new facility will bear interest (a) for LIBOR Rate Loans, at LIBOR plus 1.5%, or (b) for Base Rate Loans, at a rate equal to the highest of (i) the prime rate plus 0.5%, (ii) the Federal Funds Rate plus 1.0%, or (iii) LIBOR plus 1.5%. The new 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 0.25% and permits the payment of cash dividends subject to certain limitations, including a requirement that there were no borrowings outstanding in the 30 days prior to the dividend payment and no borrowings are expected in the 30 days subsequent to the payment. The Company has had no borrowings under either the new or prior facility.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

Income Taxes

12 Months Ended

Jan. 28, 2012

Income Taxes

Income Taxes

(8) Income Taxes

Income tax (benefit) expense for fiscal 2011, 2010, and 2009 consists of the following (in thousands):

	2011			2010			2009
Current:
Federal	$	(6,809	)	$	9,304		$	9,474
State	(863		)	1,340			1,574
Total current	(7,672		)	10,644			11,048
Deferred:
Federal	(499		)	429			(676		)
State	355			(331		)	(403		)
Total deferred	(144		)	98			(1,079		)
Total income tax (benefit) expense	$	(7,816	)	$	10,742		$	9,969

Income tax (benefit) expense computed using the federal statutory rate is reconciled to the reported income tax (benefit) expense as follows for fiscal 2011, 2010, and 2009 (in thousands):

	2011			2010			2009
Statutory rate applied to (loss) income before income taxes	$	(6,241	)	$	11,058		$	10,390
State income taxes, net of federal benefit	(684		)	1,191			1,140
State tax credits	(342		)	(443		)	(379		)
State tax credits - valuation allowance (net of federal benefit)	810			—			—
Tax exempt interest	(9		)	(37		)	(128		)
General business credits	(1,477		)	(987		)	(1,028		)
Other	127			(40		)	(26		)
Income tax (benefit) expense	$	(7,816	)	$	10,742		$	9,969

The components of deferred tax assets and deferred tax liabilities as of January 28, 2012 and January 29, 2011 are as follows (in thousands):

	January 28,			January 29,
	2012			2011
Deferred tax assets:
Deferred rent amortization	$	1,980		$	1,856
Inventory capitalization	1,898			2,148
Book and tax depreciation differences	—			254
Vacation liability	736			713
State tax credits	1,421			1,031
Stock compensation	1,197			1,346
Insurance liabilities	681			554
Accrued compensation	177			—
Goodwill	88			—
Other	190			146
Subtotal deferred tax assets	8,368			8,048
Less: State tax credits valuation allowance - net	(810		)	—
Total deferred tax assets	7,558			8,048

Deferred tax liabilities:
Accrued compensation	—			(526		)
Book and tax depreciation differences	(214		)	—
Prepaid expenses	(292		)	(210		)
Goodwill	—			(404		)
Total deferred tax liabilities	(506		)	(1,140		)
Net deferred tax asset	$	7,052		$	6,908

The Company reviews and assesses uncertain tax positions, with recognition and measurement of tax benefit, if any, based on a “more-likely-than-not” standard with respect to the ultimate outcome, regardless of whether this assessment is favorable or unfavorable. The Company files income tax returns in U.S. federal and state jurisdictions where it does business and is subject to examinations by the IRS and other taxing authorities. As of January 28, 2012, there were no benefits taken on the Company’s income tax returns that do not qualify for financial statement recognition. If a tax position does not meet the minimum statutory threshold to avoid payment of penalties and interest, a company is required to recognize an expense for the amount of the interest and penalty in the period in which the company claims or expects to claim the position on its tax return. For financial statement purposes, companies are allowed to elect whether to classify such charges as either income tax expense or another expense classification. Should such expense be incurred in the future, the Company will classify such interest as a component of interest expense and penalties as a component of income tax expense.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible and income tax credits may be utilized, management believes it is more likely than not that the Company will realize the benefits of these deductible differences with the exception of certain tax credits available in one state. Losses incurred in 2011 caused the Company to conclude that its ability to utilize such state’s tax credits was no longer more likely than not, necessitating a charge to income tax expense and a reduction in deferred tax assets of $0.8 million in connection with the establishment of a valuation allowance. Deferred tax assets as of January 28, 2012 still include the portion of state tax credits that are available through 2026 and are expected to be utilized in the future. However, if operating results deteriorate in the future, these tax credits may also require a valuation allowance, which would result in a charge to income tax expense and a reduction in deferred tax assets of $0.5 million.

The effective income tax rate for fiscal 2011 includes the recognition of benefits arising from a tax net operating loss generated in 2011 and the benefit of various tax credits, partially offset by the aforementioned valuation allowance for state tax credits. Under current IRS and state income tax regulations, net operating losses may be carried back up to two years and certain income tax credits may be carried back one year. The Company plans to amend its income tax returns for the prior two years in order to realize the tax benefits generated from the net operating loss and tax credit carrybacks. Based on income tax returns already filed for the previous two years, the Company expects to fully recover such benefits. Accordingly, $6.7 million has been included in income tax receivable related to the carrybacks, together with amounts representing fiscal 2011 deposits which are expected to be refunded. The Company files income tax returns with the U.S. federal government and various state jurisdictions. 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 2008.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

+ Details

Other Long-Term Liabilities

12 Months Ended

Jan. 28, 2012

Other Long-Term Liabilities

Other Long-Term Liabilities

(9) Other Long-Term Liabilities

The components of other long-term liabilities as of January 28, 2012 and January 29, 2011 are as follows (in thousands):

	January 28, 2012		January 29, 2011
Deferred rent	$	4,433	$	3,946
Tenant improvement allowances	7,158		4,848
Other	1,165		1,242
	$	12,756	$	10,036

Stockholders' Equity

12 Months Ended

Jan. 28, 2012

Stockholders' Equity

Stockholders' Equity

(10) Stockholders’ Equity

Stock-Based Compensation

On March 8, 2005, the Company adopted the 2005 Citi Trends, Inc. Long-Term Incentive Plan (the “Incentive Plan”), which became effective upon the consummation of the Company’s initial public offering in May 2005. The Incentive Plan superseded and replaced the 1999 Allied Fashion Stock Option Plan (the “1999 Plan”). The 1999 Plan provided for the grant of incentive and nonqualified options to key employees and directors. The Board of Directors determined the exercise price of the option grants. The option grants generally vested in equal installments over four years from the date of grant and are generally exercisable up to ten years from the date of grant, which is the contractual life of the options. The exercise price of stock options may be satisfied through net share settlements. As of January 28, 2012, there remained outstanding 3,900 options issued under the 1999 Plan.

The Incentive Plan provides for the grant of incentive and nonqualified options, nonvested restricted stock and other forms of stock-based compensation to key employees and directors. The Board of Directors determines the exercise prices of the option grants which are generally equal to the closing market price of the Company’s stock on the date of grant. Option grants generally vest in equal installments over four years from the date of grant for employees and over one to three years for directors and are generally exercisable up to ten years from the date of grant. The exercise price of stock options may be satisfied through net share settlements. Under the Incentive Plan, the Company may issue up to 1,300,000 shares of common stock upon the exercise of stock options and other equity incentive awards.

Compensation expense associated with stock options is based on an estimate of the fair value of each option award on the date of grant using the Black-Scholes Merton option pricing model. Expected volatility is based on estimated future volatility of the Company’s common stock price. Having completed its initial public offering in May 2005, the Company had limited historical data regarding the price of its publicly traded shares when it last granted options in fiscal 2006. To estimate future volatility of the Company’s stock price, the stock price volatility of similar entities for which shares had been publicly traded for a period of seven years or more was measured (seven years was used because the weighted average expected life of the Company’s stock options was between six and seven years). The Company used historical data to estimate forfeitures used in the model. The expected term of options granted was based on the “simplified method” for “plain vanilla” options. The simplified method (available for entities which do not have sufficient historical exercise data available for making a refined estimate of expected term) assumed a 10 year contractual term with vesting at a rate of 25% per year. Accordingly, expected term = ((vesting term + original contractual term)/2). The risk-free interest rate for the periods which corresponds with the expected life of the option was based on the U.S. Treasury yield curve for the vesting period in effect at the time of grant.

A summary of the status of stock options under the Company’s stock option plans and changes during fiscal 2011 is presented in the table below:

	2011
					Weighted Average
			Weighted Average		Remaining	Aggregate
			Exercise		Contractual	Intrinsic
	Options		Price		Term (Years)	Value

Outstanding as of January 29, 2011	82,698		$	26.88	4.1	$	530,554
Granted	—		—		—	—
Exercised	(13,049	)	2.97		0.8	—
Net shares settled	(3,774	)	0.38		0.1	—
Forfeited	(11,000	)	37.69		4.0	—

Outstanding as of January 28, 2012	54,875		$	32.22	3.9	$	18,750

Vested as of January 28, 2012	54,875		$	32.22	3.9	$	18,750

Exercisable as of January 28, 2012	54,875		$	32.22	3.9	$	18,750

As of January 28, 2012, the range of exercise prices was $4.46 to $44.03. As of January 29, 2011 and January 30, 2010 the range of exercise prices was $0.38 to $44.03.

Cash received from options exercised totaled $0.0 million, $0.3 million and $0.8 million in fiscal 2011, 2010 and 2009, respectively. The intrinsic value of options exercised was $0.2 million, $0.7 million and $1.2 million in fiscal 2011, 2010 and 2009, respectively.

No compensation expense for stock options was recorded during fiscal 2011 as the last grant vested prior to the beginning of the year. The Company recognized $0.1 million and $0.2 million in compensation expense for option grants during fiscal 2010 and 2009, respectively. The Incentive Plan allows the Company to issue new shares from shares authorized for issuance or repurchase shares on the open market to complete employee stock option exercises.

Shares of nonvested restricted stock granted to employees vest in equal installments over four years from the date of grant. Shares issued to directors vest one to two years from the date of grant. The Company records compensation expense on a straight line basis over the requisite service period of the stock recipients which is equal to the vesting period of the stock. Total compensation cost is calculated based on the closing market price on the date of grant times the number of shares granted. Using an estimated forfeiture rate equal to 6.2%, the Company expects to recognize $4.3 million in future compensation expense from the grants of nonvested restricted stock over the requisite service period of up to four years. During fiscal 2011, 2010 and 2009, compensation expense arising from nonvested restricted stock grants totaled $2.6 million, $3.0 million and $2.3 million, respectively.

A summary of activity related to nonvested restricted stock grants during fiscal year 2011 is as follows:

	Nonvested Restricted Shares		Weighted Average Grant Date Fair Value
Outstanding as of January 29, 2011	294,624		$	26.25
Granted	242,277		20.74
Vested	(101,692	)	25.42
Forfeited	(149,600	)	24.35
Outstanding as of January 28, 2012	285,609		$	22.87

Cash flows resulting from tax deductions in excess of the cumulative compensation cost recognized for options exercised and vesting of restricted shares (“excess tax benefits”) are classified as financing cash flows. (Decrease) increase in such excess tax benefits was $(0.3) million, $0.4 million and $0.6 million in fiscal 2011, 2010 and 2009, respectively.

Commitments and Contingencies

12 Months Ended

Jan. 28, 2012

Commitments and Contingencies

Commitments and Contingencies

(11) Commitments and Contingencies

The Company leases its stores under operating leases, which generally have an initial term of five years with renewal options. Future minimum rent payments under operating leases having noncancellable lease terms as of January 28, 2012 are as follows (in thousands):

Fiscal Year:
2012	$	36,884
2013	32,735
2014	26,525
2015	18,248
2016	9,079
Thereafter	5,384
Total future minimum lease payments	$	128,855

Certain operating leases provide for fixed monthly rents, while others provide for contingent rents computed as a percentage of net sales and others provide for a combination of both fixed monthly rents and contingent rents computed as a percentage of net sales. Rent expense was $39.8 million, $33.7 million and $28.2 million in fiscal 2011, 2010 and 2009 (including $0.9 million, $1.3 million and $1.5 million of percentage rent), respectively.

On August 12, 2011, the Company received a letter of determination from the U.S. Equal Employment Opportunity Commission (the “EEOC”) commencing a conciliation process regarding alleged discrimination against males by the Company in its hiring and promotion practices during the years 2004 through 2006. In its letter of determination, the EEOC seeks recovery from the Company in the amount of $0.2 million on behalf of a former male employee and in the additional amount of $3.8 million in a settlement fund for a class of unidentified males who sought or considered seeking manager or assistant manager positions in the Company’s stores. The EEOC also seeks certain undertakings by the Company with regard to its employment policies and procedures and a reporting obligation to the EEOC with respect to the Company’s compliance with these undertakings.

The Company has not received documentation or other information from the EEOC in support of its letter of determination, but has undertaken its own preliminary internal analysis of the EEOC’s claims and defenses to such claims and has had initial discussions with the EEOC in that regard. The Company anticipates further discussions with the EEOC and will continue to evaluate the claim as well as potential defenses. The Company has considered the possibility of reaching a satisfactory conciliation agreement with the EEOC and the individual claimant, and has proposed economic and non-economic terms that might form the basis of such an agreement, including a total economic settlement offer of up to $0.4 million. The Company is also evaluating other aspects of the conciliation process established by the EEOC. On March 29, 2012, the Company received a letter from the EEOC responding to the Company’s settlement offer, proposing a counter offer for settlement of $3.1 million and requesting certain additional information from the Company. The Company is evaluating this counter proposal from the EEOC and its possible responses to it.

On February 24, 2012, a suit was filed in the United States District Court for the Northern District of Alabama, Middle Division, by certain individuals as a purported collective action on behalf of current and former employees of the Company holding store managerial positions. The plaintiffs allege that store managers have been improperly classified as exempt from the obligation to pay overtime in violation of the Fair Labor Standards Act. The Company intends to vigorously defend the claims that have been asserted in this lawsuit. Because of the early stage of this action and the fact that no discovery has been conducted to date, it is not reasonably possible to estimate a range of loss with respect to this matter. Accordingly, no accrual for costs has been recorded, and the potential impact of this matter on the Company’s financial position, results of operations and cash flows cannot be determined at this time.

The Company from time to time is also involved in various other legal proceedings incidental to the conduct of its business, including claims by customers, employees or former employees. Once it becomes probable that the Company will incur costs in connection with a legal proceeding and such costs can be reasonably estimated, it establishes appropriate reserves. While legal proceedings are subject to uncertainties and the outcome of any such matter is not predictable, the Company is not aware of any legal proceedings pending or threatened against it that it expects to have a material adverse effect on its financial condition, results of operations or liquidity.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

+ Details

Valuation and Qualifying Accounts

12 Months Ended

Jan. 28, 2012

Valuation and Qualifying Accounts

Valuation and Qualifying Accounts

(12) Valuation and Qualifying Accounts

The following table summarizes the allowance for inventory shrinkage (in thousands):

	Allowance for Inventory Shrinkage
Balance as of January 31, 2009	$	1,980
Additions charged to costs and expenses	5,849
Deductions	(5,562		)
Balance as of January 30, 2010	2,267
Additions charged to costs and expenses	5,570
Deductions	(5,915		)
Balance as of January 29, 2011	1,922
Additions charged to costs and expenses	5,758
Deductions	(5,693		)
Balance as of January 28, 2012	$	1,987

Additions charged to costs and expenses are the result of estimated inventory shrinkage. Deductions represent actual inventory shrinkage incurred from physical inventories taken during the fiscal year.

Unaudited Quarterly Results of Operations

12 Months Ended

Jan. 28, 2012

Unaudited Quarterly Results of Operations

Unaudited Quarterly Results of Operations

(13) Unaudited Quarterly Results of Operations

	Quarter Ended
	Jan. 28			Oct. 29			Jul. 30			Apr. 30		Jan. 29		Oct. 30			Jul. 31			May 1
	2012 (1)			2011 (1)			2011 (1)			2011		2011 (2)		2010			2010			2010
	(in thousands, except per share and share amounts)

Statement of Income Data:
Net sales	$	178,356		$	143,067		$	130,233		$	189,168	$	172,043	$	140,037		$	129,042		$	181,406
Cost of sales	124,532			94,909			86,781			114,099		105,184		88,356			80,762			109,016

Gross profit	53,824			48,158			43,452			75,069		66,859		51,681			48,280			72,390
Selling, general and administrative expenses	52,206			53,059			50,688			51,072		47,112		47,243			44,426			48,450
Depreciation and amortization	6,569			6,454			6,351			5,584		5,671		5,134			4,769			4,750
Asset impairment	4,209			696			1,609			—		21		190			—			—

(Loss) income from operations	(9,160		)	(12,051		)	(15,196		)	18,413		14,055		(886		)	(915		)	19,190
Interest, net	11			44			59			50		27		33			39			51

(Loss) income before income taxes	(9,149		)	(12,007		)	(15,137		)	18,463		14,082		(853		)	(876		)	19,241
Income tax (benefit) expense	(3,834		)	(5,246		)	(5,106		)	6,370		4,718		(459		)	(309		)	6,792
Net (loss) income	$	(5,315	)	$	(6,761	)	$	(10,031	)	$	12,093	$	9,364	$	(394	)	$	(567	)	$	12,449

Net (loss) income per common share:
Basic (3)	$	(0.36	)	$	(0.46	)	$	(0.69	)	$	0.83	$	0.64	$	(0.03	)	$	(0.04	)	$	0.86
Diluted (3)	$	(0.36	)	$	(0.46	)	$	(0.69	)	$	0.83	$	0.64	$	(0.03	)	$	(0.04	)	$	0.86
Weighted average shares used to compute net (loss) income per common share:
Basic	14,605,575			14,601,544			14,595,985			14,553,884		14,522,922		14,518,605			14,514,528			14,457,617
Diluted	14,605,575			14,601,544			14,595,985			14,567,423		14,537,007		14,518,605			14,514,528			14,488,767

(1) The Company recorded non-cash impairment expense related to leasehold improvements and fixtures and equipment at underperforming stores of $1.6 million, $0.7 million, and $2.8 million during the second, third, and fourth quarters of fiscal 2011, respectively. In addition, the Company recorded non-cash impairment expense related to goodwill of $1.4 million during the fourth quarter of fiscal 2011.

(2) Financial results for the fourth quarter of fiscal 2010 include an immaterial correction of an error related to an accounting policy. Prior to the fourth quarter, the Company’s policy was to expense the cost of inbound freight associated with the delivery of inventory to the Company’s distribution centers in the period incurred, rather than capitalizing such costs as a component of inventory and expensing them as the related inventory was sold. In the fourth quarter of fiscal 2010, the Company began to capitalize inbound freight costs as a component of inventory. The impact of this correction in the fourth quarter was a reduction in cost of sales of $2.7 million and a resulting increase in net income of $1.8 million, or $0.12 per diluted share.

(3) Net (loss) income per share is computed independently for each period presented. As a result, the total of net (loss) income per share for the four quarters may not equal the annual amount.

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References + Details