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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	May 02, 2020	May 18, 2020
Document and Entity Information
Document Type	10-Q
Document Period End Date	May 02, 2020
Entity Registrant Name	Citi Trends Inc
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		10,616,546
Current Fiscal Year End Date	--01-30
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001318484
Amendment Flag	false

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	May 02, 2020	Feb. 01, 2020
Current assets:
Cash and cash equivalents	$ 108,130	$ 19,923
Short-term investment securities	5	27,562
Inventory	121,885	138,258
Prepaid and other current assets	10,053	14,278
Income tax receivable	85	1,186
Total current assets	240,158	201,207
Property and equipment, net of accumulated depreciation of $267,330 and $262,570 as of May 2, 2020 and February 1, 2020, respectively	64,847	64,985
Operating lease right of use assets	166,749	169,854
Long-term investment securities		15,675
Deferred income taxes	14,334	6,669
Other assets	755	755
Total assets	486,843	459,145
Current liabilities:
Accounts payable	94,249	79,596
Operating lease liabilities	50,834	42,944
Accrued expenses	11,532	14,755
Accrued compensation	7,524	13,013
Layaway deposits	1,050	554
Total current liabilities	165,189	150,862
Noncurrent operating lease liabilities	133,167	135,316
Revolving credit facility	43,700
Other long-term liabilities	1,729	1,923
Total liabilities	343,785	288,101
Stockholders’ equity:
Common stock, $0.01 par value. Authorized 32,000,000 shares; 15,950,332 shares issued as of May 2, 2020 and 15,907,666 shares issued as of February 1, 2020; 10,616,546 shares outstanding as of May 2, 2020 and 10,834,134 shares outstanding as of February 1, 2020	158	157
Paid in capital	93,170	93,180
Retained earnings	165,049	186,772
Treasury stock, at cost; 5,333,786 shares held as of May 2, 2020 and 5,073,532 shares held as of February 1, 2020	(115,319)	(109,065)
Total stockholders’ equity	143,058	171,044
Commitments and contingencies (note 9)
Total liabilities and stockholders’ equity	$ 486,843	$ 459,145

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	May 02, 2020	Feb. 01, 2020
Condensed Consolidated Balance Sheets
Accumulated depreciation	$ 267,330	$ 262,570
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized shares	32,000,000	32,000,000
Common stock, shares issued	15,950,332	15,907,666
Common stock, shares outstanding	10,616,546	10,834,134
Treasury stock, shares	5,333,786	5,073,532

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	May 02, 2020	May 04, 2019
Consolidated Statements of Operations
Net sales	$ 116,124	$ 205,032
Cost of sales (exclusive of depreciation shown separately below)	(84,370)	(128,238)
Selling, general and administrative expenses	(54,076)	(63,447)
Depreciation	(4,946)	(4,614)
Asset impairment	(286)	0
(Loss) Income from operations	(27,554)	8,733
Interest income	217	379
Interest expense	(163)	(38)
(Loss) Income before income taxes	(27,500)	9,074
Income tax benefit (provision)	6,608	(1,286)
Net (loss) income	$ (20,892)	$ 7,788
Basic net (loss) income per common share	$ (2.00)	$ 0.65
Diluted net (loss) income per common share	$ (2.00)	$ 0.65
Weighted average number of shares outstanding
Basic	10,442,636	11,976,142
Diluted	10,442,636	12,006,306

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	May 02, 2020	May 04, 2019
Operating activities:
Net (loss) income	$ (20,892)	$ 7,788
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	4,946	4,614
Non-cash operating lease costs	11,756	11,777
Asset impairment	286	0
Loss on disposal of property and equipment	4	2
Deferred income taxes	(7,665)	153
Non-cash stock-based compensation expense	469	706
Changes in assets and liabilities:
Inventory	16,373	8,587
Prepaid and other current assets	4,201	(477)
Other assets	1	(4)
Accounts payable	14,030	(9,628)
Accrued expenses and other long-term liabilities	(6,795)	(11,904)
Accrued compensation	(5,490)	(4,604)
Income tax receivable/payable	1,101	1,158
Layaway deposits	495	729
Net cash provided by operating activities	12,820	8,897
Investing activities:
Sales/redemptions of investment securities	43,754	13,146
Purchases of investment securities	(522)	(4,825)
Purchases of property and equipment	(3,981)	(2,287)
Net cash provided by investing activities	39,251	6,034
Financing activities:
Borrowings under revolving credit facility	43,700
Cash used to settle withholding taxes on the vesting of nonvested restricted stock	(479)	(712)
Dividends paid to stockholders	(831)	(958)
Repurchases of common stock	(6,254)	(1,640)
Net cash provided by (used in) financing activities	36,136	(3,310)
Net increase in cash and cash equivalents	88,207	11,621
Cash and cash equivalents:
Beginning of period	19,923	17,863
End of period	108,130	29,484
Supplemental disclosures of cash flow information:
Cash paid for interest	163	31
Cash refunds of income taxes	(45)	(1)
Supplemental disclosures of non-cash investing activities:
Accrual for purchases of property and equipment	$ 936	$ 1,026

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Paid in Capital	Retained Earnings	Treasury Stock	Total
Balances at Feb. 02, 2019	$ 157	$ 91,794	$ 176,094	$ (80,620)	$ 187,425
Balances (in shares) at Feb. 02, 2019	15,827,713			3,669,476
Increase (Decrease) in Stockholders' Equity
Vesting of nonvested restricted stock units	$ 1				1
Issuance of nonvested shares to employees and directors under incentive plan (in shares)	57,133
Stock-based compensation expense		706			706
Net share settlement of nonvested shares and restricted stock units	$ (1)	(712)			(713)
Net share settlement of nonvested shares and restricted stock units (in shares)	(36,237)
Repurchase of common stock				$ (1,640)	(1,640)
Repurchase of common stock (in shares)				82,312
Dividends paid to stockholders			(958)		(958)
Net loss			7,788		7,788
Balances at May. 04, 2019	$ 157	91,788	180,864	$ (82,260)	190,549
Balances (in shares) at May. 04, 2019	15,848,609			3,751,788
Increase (Decrease) in Stockholders' Equity
Adoption of lease accounting standard (See Note 12)			(2,060)		(2,060)
Balances at Feb. 01, 2020	$ 157	93,180	186,772	$ (109,065)	$ 171,044
Balances (in shares) at Feb. 01, 2020	15,907,666			5,073,532	15,907,666
Increase (Decrease) in Stockholders' Equity
Vesting of nonvested restricted stock units	$ 1				$ 1
Issuance of nonvested shares to employees and directors under incentive plan (in shares)	86,025
Forfeiture of nonvested shares by employees and directors (in shares)	(8,872)
Stock-based compensation expense		469			469
Net share settlement of nonvested shares and restricted stock units		(479)			(479)
Net share settlement of nonvested shares and restricted stock units (in shares)	(34,487)
Repurchase of common stock				$ (6,254)	(6,254)
Repurchase of common stock (in shares)				260,254
Dividends paid to stockholders			(831)		(831)
Net loss			(20,892)		(20,892)
Balances at May. 02, 2020	$ 158	$ 93,170	$ 165,049	$ (115,319)	$ 143,058
Balances (in shares) at May. 02, 2020	15,950,332			5,333,786	15,950,332

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

Significant Accounting Policies	3 Months Ended
Significant Accounting Policies	May 02, 2020
Significant Accounting Policies
Significant Accounting Policies	1. Significant Accounting Policies Basis of Presentation Citi Trends, Inc. (collectively referred to herein with its wholly owned subsidiary as the “Company”) is a value-priced retailer of fashion apparel, accessories and home goods for the entire family. As of May 2, 2020, the Company operated 574 stores in 33 states, including temporarily closed stores. The condensed consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim reporting and are unaudited. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The condensed consolidated balance sheet as of February 1, 2020 is derived from the audited financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended February 1, 2020 (the “2019 Form 10-K”). These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the 2019 Form 10-K. Operating results for the thirteen weeks ended May 2, 2020 are not necessarily indicative of the results that may be expected for the fiscal year, as a result of the seasonality of the business and the current uncertainty surrounding the economic impact of the novel coronavirus (“COVID-19”) pandemic. Fiscal Year The following contains references to fiscal years 2020 and 2019, which represent fiscal years ending or ended on January 30, 2021 and February 1, 2020, respectively. Fiscal 2020 and 2019 both have 52-week accounting periods. Recently Adopted Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), which introduced an expected credit loss model for the impairment of financial assets measured at amortized costs. The model replaces the incurred loss model for those assets and broadens the information an entity must consider in developing its expected credit loss estimate for assets measured at amortized cost. The Company adopted ASU No. 2016-13 on February 2, 2020. The adoption of the new standard did not have a material impact to the Company’s consolidated financial position, results of operations or cash flows.

Impact of the COVID-19 Pandemic	3 Months Ended
Impact of the COVID-19 Pandemic	May 02, 2020
Impact of the COVID-19 Pandemic
Impact of the COVID-19 Pandemic	2. Impact of the COVID-19 Pandemic In December 2019, COVID-19 emerged and spread worldwide. On March 11, 2020, the World Health Organization declared COVID-19 a pandemic. After closely monitoring and taking into consideration the guidance from federal, state and local governments, the Company temporarily closed all of its retail store locations and distribution centers effective March 20, 2020. The temporary closure of the Company’s stores has had an adverse impact on the Company’s financial condition, results of operations and liquidity. The Company has taken several steps to increase its cash position and preserve financial flexibility in light of uncertainties resulting from the COVID-19 pandemic. On March 20, 2020, the Company borrowed $43.7 million in principal amount under its revolving credit facility. Other measures taken to mitigate the operating and financial impact of the pandemic, included (i) furloughing substantially all store and distribution center personnel, and a significant portion of the corporate staff starting as of April 3, 2020, with employee benefits for eligible employees continuing through the temporary furlough; (ii) implementing temporary tiered salary reductions for management level corporate employees and reducing the cash portion of non-employee director fees; (iii) extending payment terms with vendors and suppliers; (iv) abating payments of rent as appropriate; (v) executing substantial reductions in operating expenses, store occupancy costs, capital expenditures and other costs, including through reduced inventory purchases and eliminating the 401(k) plan match; (vi) suspending any repurchases of shares and payment of dividends; and (vii) amending the revolving credit facility to extend the term to August 2021. Beginning April 24, 2020, the Company started to reopen stores in select states in accordance with state and local government guidelines. As of May 2, 2020, the Company had reopened 16 stores. As of June 9, 2020, the Company had reopened more than 530 stores, while also opening 4 new stores.

Cash and Cash Equivalents/Concentration of Credit Risk	3 Months Ended
Cash and Cash Equivalents/Concentration of Credit Risk	May 02, 2020
Cash and Cash Equivalents/Concentration of Credit Risk
Cash and Cash Equivalents/Concentration of Credit Risk	3. Cash and Cash Equivalents/Concentration of Credit Risk For purposes of the condensed consolidated balance sheets and condensed consolidated statements of cash flows, the Company considers all highly liquid investments with maturities at date of purchase of three months or less to be cash equivalents. Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash and cash equivalents. The Company places its cash and cash equivalents in what it believes to be high credit quality banks and institutional money market funds. The Company maintains cash accounts that exceed federally insured limits.

Earnings per Share

3 Months Ended

May 02, 2020

Earnings per Share

Earnings per Share

4. Earnings per Share

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

The dilutive effect of stock-based compensation arrangements is accounted for using the treasury stock method. The Company includes as assumed proceeds the amount of compensation cost attributed to future services and not yet recognized. For the thirteen weeks ended May 2, 2020 and May 4, 2019, there were 179,000 and 108,000 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
	May 2, 2020	May 4, 2019
Weighted average number of common shares outstanding	10,442,636	11,976,142
Incremental shares from assumed vesting of nonvested restricted stock	—	30,164
Weighted average number of common shares and common stock equivalents outstanding	10,442,636	12,006,306

Fair Value Measurements

3 Months Ended

May 02, 2020

Fair Value Measurements

Fair Value Measurements

5. Fair Value Measurement

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

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

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

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

As of May 2, 2020, the Company’s investment securities are classified as held-to-maturity since the Company has the intent and ability to hold the investments to maturity. Such securities are carried at amortized cost plus accrued interest and consist of the following (in thousands):


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair Market
	Cost		Gains		Losses		Value
Short-term:
Obligations of the U.S. Treasury and U.S. government agencies (Level 1)	$	5	$	—	$	—	$	5
	$	5	$	—	$	—	$	5

As of February 1, 2020, the Company’s investment securities were classified as held-to-maturity and consisted of the following (in thousands):


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair Market
	Cost		Gains		Losses		Value
Short-term:
Obligations of the U.S. Treasury and U.S. government agencies (Level 1)	$	17,277	$	8	$	(2)	$	17,283
Bank certificates of deposit (Level 2)		10,285		—		—		10,285
	$	27,562	$	8	$	(2)	$	27,568
Long-term:
Obligations of the U.S. Treasury (Level 1)	$	1,908	$	—	$	(1)	$	1,907
Bank certificates of deposit (Level 2)		13,767		—		—		13,767
	$	15,675	$	—	$	(1)	$	15,674

The amortized cost and fair market value of investment securities as of February 1, 2020 by contractual maturity were as follows (in thousands):


			Fair
	Amortized		Market
	Cost		Value
Mature in one year or less	$	27,562	$	27,568
Mature after one year through five years		15,675		15,674
	$	43,237	$	43,242

During the thirteen weeks ended May 2, 2020, in response to the COVID-19 pandemic and in order to enhance its liquidity position, the Company sold substantially all of its investment securities which were classified as held-to-maturity as of February 1, 2020. Net gains from the sales of investment securities were $38,300 and $12,500 for short-term and long-term investment securities, respectively.

- 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 + Details

Impairment of Assets	3 Months Ended
Impairment of Assets	May 02, 2020
Impairment of Assets
Impairment of Assets	6. Impairment of Assets If facts and circumstances indicate that a long-lived asset or operating lease right-of-use asset may be impaired, the carrying value is reviewed. If this review indicates that the carrying value of the asset will not be recovered as determined based on projected undiscounted cash flows related to the asset over its remaining life, the carrying value of the asset is reduced to its estimated fair value. In the thirteen weeks ended May 2, 2020, non-cash impairment expense related to an underperforming store totaled $0.3 million, comprised of $0.2 million for an operating lease right-of-use asset and $0.1 million for leasehold improvements and fixtures and equipment. There was no impairment expense recorded in the thirteen weeks ended May 4, 2019.

Revolving Credit Facility	3 Months Ended
Revolving Credit Facility	May 02, 2020
Revolving Credit Facility
Revolving Credit Facility	7. Revolving Credit Facility On October 27, 2011, the Company entered into a five-year, $50 million credit facility with Bank of America. The facility was amended on August 18, 2015, extending the maturity date to August 18, 2020. The facility was amended again on May 12, 2020, extending the maturity date to August 18, 2021. The amended facility provides a $50 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 $75 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 0.25% 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. Borrowings under the Revolving Credit Facility will bear interest (a) for Eurodollar Loans, at a rate equal to LIBOR plus either 2.25% or 2.5%, 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) LIBOR for a period of one month plus 1.0%, plus, in each case either 1.25% or 1.5%, based in any such case on the average daily availability for borrowings under the facility. On March 20, 2020, in response to the COVID-19 pandemic, the Company borrowed $43.7 million on the credit facility to enhance its liquidity position. Such borrowings accrued interest ranging from 1.625% to 3.5%.

Income Taxes	3 Months Ended
Income Taxes	May 02, 2020
Income Taxes
Income Taxes	8. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. For the thirteen weeks ended May 2, 2020, the Company utilized the discrete effective tax rate method to determine its tax expense based upon interim period results. The Company concluded that the use of the discrete method was more appropriate than the annual effective tax rate method because the full-year tax rate is not reliably predictable. The effective income tax rate was 24.0% for the thirteen weeks ended May 2, 2020, compared to 14.2% for the thirteen weeks ended May 4, 2019. The difference in the effective income tax rate was due to a pretax loss for the thirteen weeks ended May 2, 2020 compared to pretax income in the prior year. On March 27, 2020, the CARES Act was enacted into law. The CARES Act includes several significant business tax provisions that, among other things, would eliminate the taxable income limit for certain net operating losses (“NOLs”) and allow businesses to carry back NOLs arising in 2018, 2019 and 2020 to the five prior tax years, reduce the business interest limitation under section 163(j), and fix the qualified improvement property regulations in the 2017 Tax Cuts and Jobs Act. As a result of the CARES Act, to the extent that there are taxable losses at the end of fiscal 2020, the Company estimates that it will be able to obtain a tax refund from the carryback of federal NOLs.

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	May 02, 2020
Commitments and Contingencies
Commitments and Contingencies	9. Commitments and Contingencies The Company from time to time is involved in various legal proceedings incidental to the conduct of its business, including claims by customers, landlords, employees or former employees. Once it becomes probable that the Company will incur costs in connection with a legal proceeding and such costs can be reasonably estimated, it establishes appropriate reserves. While legal proceedings are subject to uncertainties and the outcome of any such matter is not predictable, the Company is not aware of any legal proceedings pending or threatened against it that it expects to have a material adverse effect on its financial condition, results of operations or liquidity.

Stock Repurchase Program and Cash Dividends	3 Months Ended
Stock Repurchase Program and Cash Dividends	May 02, 2020
Stock Repurchase Program and Cash Dividends
Stock Repurchase Program and Cash Dividends	10. Stock Repurchase Program and Cash Dividends Repurchases of Common Stock In November 2018, the Company’s board of directors approved a program that authorized the repurchase of up to $25.0 million in shares of the Company’s common stock. During the thirteen weeks ended May 4, 2019, the Company repurchased 82,312 shares of its common stock at an aggregate cost of $1.6 million. In November 2019, the Company’s board of directors approved a new program that authorized the repurchase of up to $25.0 million in shares of the Company’s common stock. During the thirteen weeks ended May 2, 2020, the Company repurchased 260,254 shares of its common stock at an aggregate cost of $6.3 million. On March 13, 2020, the Company’s board of directors approved another new program that authorized the repurchase of up to $30.0 million in shares of the Company’s common stock. Due to the current economic uncertainty stemming from the COVID-19 pandemic, the Company has temporarily suspended any repurchases as of March 23, 2020 and plans to continue to monitor the situation based on business conditions and regard for its financial liquidity needs. Dividends On February 18, 2020, the Company’s board of directors declared a dividend of $0.08 per common share, which was paid on March 17, 2020 to stockholders of record as of March 3, 2020. On April 28, 2020, the Company announced the suspension of future cash dividends due to the current economic uncertainty stemming from the COVID-19 pandemic. Any determination to declare and pay cash dividends for future quarters will be made by the Company’s board of directors.

Revenue

3 Months Ended

May 02, 2020

Revenue

Revenue

11. Revenue

Revenue Recognition

The Company’s primary source of revenue is derived from the sale of clothing and accessories to its customers with the Company’s performance obligations satisfied immediately when the customer pays for their purchase and receives the merchandise. Sales taxes collected by the Company from customers are excluded from revenue. Revenue from layaway sales is recognized at the point in time when the merchandise is paid for and control of the goods is transferred to the customer, thereby satisfying the Company’s performance obligation. The Company defers revenue from the sale of gift cards and recognizes the associated revenue upon the redemption of the cards by customers to purchase merchandise.

Sales Returns

The Company allows customers to return merchandise for up to thirty days after the date of sale. Expected refunds to customers are recorded based on estimated margin using historical return information.

Disaggregation of Revenue

The Company’s retail operations represent a single operating segment based on the way the Company manages its business. Operating decisions and resource allocation decisions are made at the Company level in order to maintain a consistent retail store presentation. The Company’s retail stores sell similar products, use similar processes to sell those products, and sell their products to similar classes of customers.

In the following table, the Company’s revenue from contracts with customers is disaggregated by major product line. The percentage of net sales related to each classification of its merchandise assortment was approximately:


	Thirteen Weeks Ended
	May 2,		May 4,
	2020		2019
Accessories	32	%	34	%
Ladies'	23	%	23	%
Children's	22	%	21	%
Men's	16	%	16	%
Home	7	%	6	%

Leases

3 Months Ended

May 02, 2020

Leases

Leases

12. Leases

The Company leases its retail store locations and certain office space and equipment. Leases for store locations are typically for a term of five years with options to extend for one or more five-year periods. The Company analyzes all leases at inception to determine if a right-of-use asset and lease liability should be recognized. Leases with an initial term of 12 months or less and leases with mutual termination clauses are not included on the condensed consolidated balance sheets. The lease liability is measured at the present value of future lease payments as of the lease commencement date.

Total lease cost is comprised of operating lease costs, short-term lease costs, and variable lease costs, which include rent paid as a percentage of sales, common area maintenance, real estate taxes and insurance for the Company’s real estate leases. Lease costs consisted of the following (in thousands):


	Thirteen Weeks Ended
	May 2, 2020		May 4, 2019
Operating lease cost	$	12,553	$	11,777
Variable lease cost		1,793		2,316
Short term lease cost		364		256
Total lease cost	$	14,710	$	14,349

Future minimum lease payments as of May 2, 2020 are as follows (in thousands):


Fiscal Year	Lease Costs
Remainder of 2020	$	43,471
2021		45,090
2022		34,296
2023		26,843
2024		19,203
Thereafter		30,698
Total future minimum lease payments		199,601
Less: imputed interest		(15,600)	(1)
Total present value of lease liabilities	$	184,001	(2)

(1)

Calculated using the discount rate for each lease.

(2)

Includes short-term and long-term operating leases.

Certain operating leases provide for fixed monthly rents, while others provide for contingent rents computed as a percentage of net sales and others provide for a combination of both fixed monthly rents and contingent rents computed as a percentage of net sales.

Supplemental cash flows and other information related to operating leases are as follows (in thousands, except for weighted average amounts):


	Thirteen Weeks Ended
	May 2, 2020		May 4, 2019
Cash paid for operating leases	$	4,032	$	12,594
Right of use assets obtained in exchange for new operating lease liabilities	$	8,962	$	26,826

Weighted average remaining lease term (years) - operating leases		5.20		4.29
Weighted average discount rate - operating leases		3.45%		3.81%

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	May 02, 2020
Significant Accounting Policies
Basis of Presentation	Basis of Presentation Citi Trends, Inc. (collectively referred to herein with its wholly owned subsidiary as the “Company”) is a value-priced retailer of fashion apparel, accessories and home goods for the entire family. As of May 2, 2020, the Company operated 574 stores in 33 states, including temporarily closed stores. The condensed consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim reporting and are unaudited. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The condensed consolidated balance sheet as of February 1, 2020 is derived from the audited financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended February 1, 2020 (the “2019 Form 10-K”). These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the 2019 Form 10-K. Operating results for the thirteen weeks ended May 2, 2020 are not necessarily indicative of the results that may be expected for the fiscal year, as a result of the seasonality of the business and the current uncertainty surrounding the economic impact of the novel coronavirus (“COVID-19”) pandemic.
Fiscal Year	Fiscal Year The following contains references to fiscal years 2020 and 2019, which represent fiscal years ending or ended on January 30, 2021 and February 1, 2020, respectively. Fiscal 2020 and 2019 both have 52-week accounting periods.
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), which introduced an expected credit loss model for the impairment of financial assets measured at amortized costs. The model replaces the incurred loss model for those assets and broadens the information an entity must consider in developing its expected credit loss estimate for assets measured at amortized cost. The Company adopted ASU No. 2016-13 on February 2, 2020. The adoption of the new standard did not have a material impact to the Company’s consolidated financial position, results of operations or cash flows.

Earnings per Share (Tables)

3 Months Ended

May 02, 2020

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
	May 2, 2020	May 4, 2019
Weighted average number of common shares outstanding	10,442,636	11,976,142
Incremental shares from assumed vesting of nonvested restricted stock	—	30,164
Weighted average number of common shares and common stock equivalents outstanding	10,442,636	12,006,306

Fair Value Measurement (Tables)

3 Months Ended

May 02, 2020

Fair Value Measurements

Schedule of investment securities classified as held-to-maturity


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair Market
	Cost		Gains		Losses		Value
Short-term:
Obligations of the U.S. Treasury and U.S. government agencies (Level 1)	$	5	$	—	$	—	$	5
	$	5	$	—	$	—	$	5

As of February 1, 2020, the Company’s investment securities were classified as held-to-maturity and consisted of the following (in thousands):


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair Market
	Cost		Gains		Losses		Value
Short-term:
Obligations of the U.S. Treasury and U.S. government agencies (Level 1)	$	17,277	$	8	$	(2)	$	17,283
Bank certificates of deposit (Level 2)		10,285		—		—		10,285
	$	27,562	$	8	$	(2)	$	27,568
Long-term:
Obligations of the U.S. Treasury (Level 1)	$	1,908	$	—	$	(1)	$	1,907
Bank certificates of deposit (Level 2)		13,767		—		—		13,767
	$	15,675	$	—	$	(1)	$	15,674

Schedule of amortized cost and fair market value of investment securities by contractual maturity

The amortized cost and fair market value of investment securities as of February 1, 2020 by contractual maturity were as follows (in thousands):


			Fair
	Amortized		Market
	Cost		Value
Mature in one year or less	$	27,562	$	27,568
Mature after one year through five years		15,675		15,674
	$	43,237	$	43,242

Revenue (Tables)

3 Months Ended

May 02, 2020

Revenue

Schedule of revenue from contracts with customers disaggregated by major product line


	Thirteen Weeks Ended
	May 2,		May 4,
	2020		2019
Accessories	32	%	34	%
Ladies'	23	%	23	%
Children's	22	%	21	%
Men's	16	%	16	%
Home	7	%	6	%

Leases (Tables)

3 Months Ended

May 02, 2020

Leases

Schedule of lease expense


	Thirteen Weeks Ended
	May 2, 2020		May 4, 2019
Operating lease cost	$	12,553	$	11,777
Variable lease cost		1,793		2,316
Short term lease cost		364		256
Total lease cost	$	14,710	$	14,349

Schedule of future minimum rent payments under operating leases

Future minimum lease payments as of May 2, 2020 are as follows (in thousands):


Fiscal Year	Lease Costs
Remainder of 2020	$	43,471
2021		45,090
2022		34,296
2023		26,843
2024		19,203
Thereafter		30,698
Total future minimum lease payments		199,601
Less: imputed interest		(15,600)	(1)
Total present value of lease liabilities	$	184,001	(2)

(1)

Calculated using the discount rate for each lease.

(2)

Includes short-term and long-term operating leases.

Schedule of supplemental cash flow and other information


	Thirteen Weeks Ended
	May 2, 2020		May 4, 2019
Cash paid for operating leases	$	4,032	$	12,594
Right of use assets obtained in exchange for new operating lease liabilities	$	8,962	$	26,826

Weighted average remaining lease term (years) - operating leases		5.20		4.29
Weighted average discount rate - operating leases		3.45%		3.81%

Significant Accounting Policies (Details)	12 Months Ended
Significant Accounting Policies (Details)	Jan. 30, 2021	Feb. 01, 2020	May 02, 2020 state store
Significant Accounting Policies
Number of stores operated \| store			574
Number of states in which company operates \| state			33
Length of fiscal year	364 days	364 days

Impact of the COVID-19 Pandemic (Details) $ in Millions	Jun. 09, 2020 store	May 02, 2020 store	Mar. 20, 2020 USD ($)
Impact of the COVID-19 Pandemic
Number of stores reopened	530	16
Number of new stores opened	4
Line of Credit
Impact of the COVID-19 Pandemic
Borrowings outstanding \| $			$ 43.7

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Earnings per Share (Details) - shares	3 Months Ended
Earnings per Share (Details) - shares	May 02, 2020	May 04, 2019
Reconciliation of average number of common shares outstanding used to calculate basic and diluted earnings per share
Weighted average number of common shares outstanding	10,442,636	11,976,142
Incremental shares from assumed vesting of nonvested restricted stock		30,164
Weighted average number of common shares and common stock equivalents outstanding	10,442,636	12,006,306
Restricted Stock
Antidilutive securities
Shares excluded from the calculation of diluted earnings per share	179,000	108,000

Fair Value Measurement - Securities Carried at Amortized Cost Plus Accrued Interest (Details) - USD ($) $ in Thousands	3 Months Ended
	May 02, 2020	Feb. 01, 2020
Investment securities classified as held to maturity
Amortized Cost		$ 43,237
Fair Market Value		43,242
Short-term Investments
Investment securities classified as held to maturity
Amortized Cost	$ 5	27,562
Gross Unrealized Gains		8
Gross Unrealized Losses		(2)
Fair Market Value	5	27,568
Net gains from the sales of investment securities	38,300
Short-term Investments \| Obligations of the U.S. Treasury and U.S. government agencies \| Fair Value, Inputs, Level 1
Investment securities classified as held to maturity
Amortized Cost	5	17,277
Gross Unrealized Gains		8
Gross Unrealized Losses		(2)
Fair Market Value	5	17,283
Short-term Investments \| Bank certificates of deposit \| Fair Value, Inputs, Level 2
Investment securities classified as held to maturity
Amortized Cost		10,285
Fair Market Value		10,285
Long Term Investments
Investment securities classified as held to maturity
Amortized Cost		15,675
Gross Unrealized Losses		(1)
Fair Market Value		15,674
Net gains from the sales of investment securities	$ 12,500
Long Term Investments \| Obligations of the U.S. Treasury and U.S. government agencies \| Fair Value, Inputs, Level 1
Investment securities classified as held to maturity
Amortized Cost		1,908
Gross Unrealized Losses		(1)
Fair Market Value		1,907
Long Term Investments \| Bank certificates of deposit \| Fair Value, Inputs, Level 2
Investment securities classified as held to maturity
Amortized Cost		13,767
Fair Market Value		$ 13,767

Fair Value Measurement - Amortized Cost and Fair Market Value of Securities by Contractual Maturity (Details) $ in Thousands	Feb. 01, 2020 USD ($)
Amortized Cost
Mature in one year or less	$ 27,562
Mature after one year through five years	15,675
Total	43,237
Fair Market Value
Mature in one year or less	27,568
Mature after one year through five years	15,674
Fair Market Value	$ 43,242

Impairment of Assets (Details) - USD ($) $ in Thousands	3 Months Ended
Impairment of Assets (Details) - USD ($) $ in Thousands	May 02, 2020	May 04, 2019
Impairment of Assets
Asset Impairment Charges, Total	$ 286	$ 0
Impairment of operating lease right-of-use asset	200
Impairment of leasehold improvements and fixtures and equipment	$ 100

Revolving Credit Facility (Details) - USD ($) $ in Thousands				3 Months Ended
	May 12, 2020	Mar. 20, 2020	Oct. 27, 2011	May 02, 2020
Revolving Line of Credit
Borrowings under revolving credit facility				$ 43,700
Line of Credit
Revolving Line of Credit
Term of credit facility			5 years
Maximum borrowing capacity	$ 50,000		$ 50,000
Borrowings under revolving credit facility		$ 43,700
Borrowing capacity, accordion feature	25,000
Maximum borrowing capacity including accordion expansion	$ 75,000
Unused commitment fee (as a percent)	0.25%
Amount of outstanding borrowings prior to cash dividend payment within specified period, per covenant	$ 0
Period prior to cash dividend payment when no borrowings may be outstanding, per covenant	30 days
Amount of expected borrowings subsequent to cash dividend payment within specified period, per covenant	$ 0
Period subsequent to cash dividend payment when no borrowings may be expected, per covenant	30 days
Line of Credit \| Minimum
Revolving Line of Credit
Effective interest rate (as a percent)		1.625%
Line of Credit \| Maximum
Revolving Line of Credit
Effective interest rate (as a percent)		3.50%
Line of Credit \| LIBOR \| Minimum
Revolving Line of Credit
Margin added to variable rate (as a percent)	2.25%
Line of Credit \| LIBOR \| Maximum
Revolving Line of Credit
Margin added to variable rate (as a percent)	2.50%
Line of Credit \| Federal Fund Rate
Revolving Line of Credit
Margin added to variable rate (as a percent)	0.50%
Line of Credit \| LIBOR, One Month
Revolving Line of Credit
Increase pricing for loans (as a percent)	1.00%
Line of Credit \| LIBOR, One Month \| Minimum
Revolving Line of Credit
Margin added to variable rate (as a percent)	1.25%
Line of Credit \| LIBOR, One Month \| Maximum
Revolving Line of Credit
Margin added to variable rate (as a percent)	1.50%

Income Taxes (Details)	3 Months Ended
Income Taxes (Details)	May 02, 2020	May 04, 2019
Income Taxes
Effective income tax rate	24.00%	14.20%

Stock Repurchase Program and Cash Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Feb. 18, 2020	May 02, 2020	May 04, 2019	Mar. 13, 2020	Nov. 30, 2019	Nov. 30, 2018
Stockholders' Equity
Stock Repurchased During Period, Value		$ 6,254	$ 1,640
Cash dividends declared per share	$ 0.08
Stock Repurchase Program
Stockholders' Equity
Stock Repurchase Program, Authorized Amount				$ 30,000	$ 25,000	$ 25,000
Stock Repurchased During Period, Shares		260,254	82,312
Stock Repurchased During Period, Value		$ 6,300	$ 1,600

Revenue (Details)	3 Months Ended
Revenue (Details)	May 02, 2020	May 04, 2019
Revenue, initial application period, cumulative effect transition
Period of time company allows customers to return merchandise	30 days
Accessories
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	32.00%	34.00%
Ladies'
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	23.00%	23.00%
Children's
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	22.00%	21.00%
Men's
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	16.00%	16.00%
Home
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	7.00%	6.00%

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
Leases - Lease Cost (Details) - USD ($) $ in Thousands	May 02, 2020	May 04, 2019
Leases
Lease term	5 years
Operating lease cost	$ 12,553	$ 11,777
Variable lease cost	1,793	2,316
Short term lease cost	364	256
Total lease cost	$ 14,710	$ 14,349
Minimum
Leases
Extension term	1 year
Maximum
Leases
Extension term	5 years

Leases - Future Minimum Lease Payments (Details) $ in Thousands	May 02, 2020 USD ($)
Future minimum lease payments under operating leases
Remainder of 2020	$ 43,471
2021	45,090
2022	34,296
2023	26,843
2024	19,203
Thereafter	30,698
Total future minimum lease payments	199,601
Less: imputed interest	(15,600)
Total present value of lease liabilities	$ 184,001

Leases - Cash flow and other information (Details) - USD ($) $ in Thousands	3 Months Ended
	May 02, 2020	May 04, 2019
Supplemental cash flow and other information related to operating leases
Cash paid for operating leases	$ 4,032	$ 12,594
Right of use assets obtained in exchange for new operating lease liabilities	$ 8,962	$ 26,826
Weighted average remaining lease term - operating leases	5 years 2 months 12 days	4 years 3 months 15 days
Weighted average discount rate - operating leases (as a percent)	3.45%	3.81%