0001558370-21-016607 | 10-Q | XBRL Viewer

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Oct. 30, 2021	Dec. 01, 2021
Document and Entity Information
Document Type	10-Q
Document Period End Date	Oct. 30, 2021
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	000-51315
Entity Registrant Name	CITI TRENDS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	52-2150697
Entity Address, Address Line One	104 Coleman Boulevard
Entity Address, City or Town	Savannah
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	31408
City Area Code	912
Local Phone Number	236-1561
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	CTRN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		8,500,434
Current Fiscal Year End Date	--01-29
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001318484
Amendment Flag	false

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 30, 2021	Jan. 30, 2021
Current assets:
Cash and cash equivalents	$ 12,023	$ 123,177
Short-term investment securities	35,462
Inventory	126,899	103,845
Prepaid and other current assets	17,095	17,420
Income tax receivable	2,297
Total current assets	193,776	244,442
Property and equipment, net of accumulated depreciation of $281,004 and $279,080 as of October 30, 2021 and January 30, 2021, respectively	71,945	63,514
Operating lease right of use assets	196,529	179,673
Deferred income taxes	3,918	6,195
Other assets	1,401	769
Total assets	467,569	494,593
Current liabilities:
Accounts payable	102,599	84,832
Operating lease liabilities	47,141	46,983
Accrued expenses	18,457	16,592
Accrued compensation	22,849	29,315
Income tax payable		4,623
Layaway deposits	1,870	500
Total current liabilities	192,916	182,845
Noncurrent operating lease liabilities	163,390	145,828
Other long-term liabilities	2,003	2,286
Total liabilities	358,309	330,959
Stockholders' equity:
Common stock, $0.01 par value. Authorized 32,000,000 shares; 15,967,965 shares issued as of October 30, 2021 and 15,981,394 shares issued as of January 30, 2021; 8,590,129 shares outstanding as of October 30, 2021 and 9,876,901 shares outstanding as of January 30, 2021	159	158
Paid in capital	95,914	95,484
Retained earnings	262,319	209,918
Treasury stock, at cost; 7,377,836 shares held as of October 30, 2021 and 6,104,493 shares held as of January 30, 2021	(249,132)	(141,926)
Total stockholders' equity	109,260	163,634
Commitments and contingencies (note 9)
Total liabilities and stockholders' equity	$ 467,569	$ 494,593

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Oct. 30, 2021	Jan. 30, 2021
Condensed Consolidated Balance Sheets
Accumulated depreciation	$ 281,004	$ 279,080
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized shares	32,000,000	32,000,000
Common stock, shares issued	15,967,965	15,981,394
Common stock, shares outstanding	8,590,129	9,876,901
Treasury stock, shares	7,377,836	6,104,493

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 30, 2021	Oct. 31, 2020	Oct. 30, 2021	Oct. 31, 2020
Consolidated Statements of Operations
Net sales	$ 227,959	$ 199,100	$ 750,621	$ 531,375
Revenue, Product and Service [Extensible List]	Net sales	Net sales	Net sales	Net sales
Cost of sales (exclusive of depreciation)	$ (136,071)	$ (115,827)	$ (440,404)	$ (327,344)
Selling, general and administrative expenses	(74,784)	(69,230)	(228,059)	(180,929)
Depreciation	(5,527)	(4,703)	(15,218)	(14,582)
Asset impairment			0	(286)
Income from operations	11,577	9,340	66,940	8,234
Interest income	18	4	24	235
Interest expense	(76)	(193)	(200)	(733)
Income before income taxes	11,519	9,151	66,764	7,736
Income tax provision	(2,505)	(2,186)	(14,363)	(1,796)
Net income	$ 9,014	$ 6,965	$ 52,401	$ 5,940
Basic net income per common share	$ 1.04	$ 0.67	$ 5.77	$ 0.57
Diluted net income per common share	$ 1.03	$ 0.67	$ 5.71	$ 0.57
Weighted average number of shares outstanding
Basic	8,706,219	10,364,842	9,081,240	10,419,557
Diluted	8,786,887	10,401,153	9,178,565	10,444,106

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Oct. 30, 2021	Oct. 31, 2020
Operating activities:
Net income	$ 52,401	$ 5,940
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	15,218	14,582
Non-cash operating lease costs	37,407	36,082
Asset impairment	0	286
Loss on disposal of property and equipment	159	22
Deferred income taxes	2,277	1,143
Insurance proceeds related to operating activities	454
Non-cash stock-based compensation expense	2,883	1,502
Changes in assets and liabilities:
Inventory	(23,446)	23,853
Prepaid and other current assets	263	(7,360)
Other assets	(362)	3
Accounts payable	15,939	7,653
Accrued expenses and other long-term liabilities	(36,324)	(25,266)
Accrued compensation	(6,466)	3,432
Income tax receivable	(6,920)	(12)
Layaway deposits	1,370	1,183
Net cash provided by operating activities	54,853	63,043
Investing activities:
Sales/redemptions of investment securities		43,759
Purchases of investment securities	(35,462)	(522)
Purchases of property and equipment	(20,808)	(11,888)
Insurance proceeds related to investing activities	192
Net cash (used in) provided by investing activities	(56,078)	31,349
Financing activities:
Borrowings under revolving credit facility	0	43,700
Repayments of revolving credit facility		(43,700)
Payments of debt issuance costs	(270)
Cash used to settle withholding taxes on the vesting of nonvested restricted stock	(2,453)	(580)
Dividends paid to stockholders		(831)
Repurchases of common stock	(107,206)	(16,142)
Net cash used in financing activities	(109,929)	(17,553)
Net (decrease) increase in cash and cash equivalents	(111,154)	76,839
Cash and cash equivalents:
Beginning of period	123,177	19,923
End of period	12,023	96,762
Supplemental disclosures of cash flow information:
Cash paid for interest	109	733
Cash payments of income taxes	19,006	655
Supplemental disclosures of non-cash investing activities:
Accrual for purchases of property and equipment	$ 3,192	$ 1,400

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Paid in Capital	Retained Earnings	Treasury Stock	Total
Balances at Feb. 01, 2020	$ 157	$ 93,180	$ 186,772	$ (109,065)	$ 171,044
Balances (in shares) at Feb. 01, 2020	15,907,666			5,073,532
Increase (Decrease) in Stockholders' Equity
Vesting of nonvested restricted stock units	$ 1				1
Issuance of nonvested shares under incentive plan (in shares)	86,025
Forfeiture of nonvested shares (in shares)	(8,872)
Stock-based compensation expense		469			469
Net share settlement of nonvested shares 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 income (loss)			(20,892)		(20,892)
Balances at May. 02, 2020	$ 158	93,170	165,049	$ (115,319)	143,058
Balances (in shares) at May. 02, 2020	15,950,332			5,333,786
Balances at Feb. 01, 2020	$ 157	93,180	186,772	$ (109,065)	171,044
Balances (in shares) at Feb. 01, 2020	15,907,666			5,073,532
Increase (Decrease) in Stockholders' Equity
Net income (loss)					5,940
Balances at Oct. 31, 2020	$ 158	94,101	191,881	$ (125,207)	160,933
Balances (in shares) at Oct. 31, 2020	15,968,849			5,709,589
Balances at May. 02, 2020	$ 158	93,170	165,049	$ (115,319)	143,058
Balances (in shares) at May. 02, 2020	15,950,332			5,333,786
Increase (Decrease) in Stockholders' Equity
Vesting of nonvested restricted stock units (in shares)	17,808
Stock-based compensation expense		536			536
Net share settlement of nonvested shares and restricted stock units		(4)			(4)
Net share settlement of nonvested shares and restricted stock units (in shares)	(192)
Net income (loss)			19,867		19,867
Balances at Aug. 01, 2020	$ 158	93,702	184,916	$ (115,319)	163,457
Balances (in shares) at Aug. 01, 2020	15,967,948			5,333,786
Increase (Decrease) in Stockholders' Equity
Issuance of nonvested shares under incentive plan (in shares)	11,047
Forfeiture of nonvested shares (in shares)	(6,346)
Stock-based compensation expense		497			497
Net share settlement of nonvested shares and restricted stock units		(98)			(98)
Net share settlement of nonvested shares and restricted stock units (in shares)	(3,800)
Repurchase of common stock				$ (9,888)	(9,888)
Repurchase of common stock (in shares)				375,803
Net income (loss)			6,965		6,965
Balances at Oct. 31, 2020	$ 158	94,101	191,881	$ (125,207)	160,933
Balances (in shares) at Oct. 31, 2020	15,968,849			5,709,589
Balances at Jan. 30, 2021	$ 158	95,484	209,918	$ (141,926)	$ 163,634
Balances (in shares) at Jan. 30, 2021	15,981,394			6,104,493	15,981,394
Increase (Decrease) in Stockholders' Equity
Issuance of nonvested shares under incentive plan (in shares)	17,278
Forfeiture of nonvested shares (in shares)	(3,005)
Stock-based compensation expense		1,087			$ 1,087
Net share settlement of nonvested shares and restricted stock units		(2,155)			(2,155)
Net share settlement of nonvested shares and restricted stock units (in shares)	(22,666)
Repurchase of common stock				$ (45,470)	(45,470)
Repurchase of common stock (in shares)				537,496
Net income (loss)			30,897		30,897
Balances at May. 01, 2021	$ 158	94,416	240,815	$ (187,396)	147,993
Balances (in shares) at May. 01, 2021	15,973,001			6,641,989
Balances at Jan. 30, 2021	$ 158	95,484	209,918	$ (141,926)	$ 163,634
Balances (in shares) at Jan. 30, 2021	15,981,394			6,104,493	15,981,394
Increase (Decrease) in Stockholders' Equity
Net income (loss)					$ 52,401
Balances at Oct. 30, 2021	$ 159	95,914	262,319	$ (249,132)	$ 109,260
Balances (in shares) at Oct. 30, 2021	15,967,965			7,377,836	15,967,965
Balances at May. 01, 2021	$ 158	94,416	240,815	$ (187,396)	$ 147,993
Balances (in shares) at May. 01, 2021	15,973,001			6,641,989
Increase (Decrease) in Stockholders' Equity
Issuance of nonvested shares under incentive plan (in shares)	4,680
Forfeiture of nonvested shares (in shares)	(6,161)
Stock-based compensation expense		814			814
Net share settlement of nonvested shares and restricted stock units		(16)			(16)
Net share settlement of nonvested shares and restricted stock units (in shares)	(171)
Repurchase of common stock				$ (18,907)	(18,907)
Repurchase of common stock (in shares)				214,761
Net income (loss)			12,490		12,490
Balances at Jul. 31, 2021	$ 158	95,214	253,305	$ (206,303)	142,374
Balances (in shares) at Jul. 31, 2021	15,971,349			6,856,750
Increase (Decrease) in Stockholders' Equity
Vesting of nonvested restricted stock units	$ 1				1
Issuance of nonvested shares under incentive plan (in shares)	415
Stock-based compensation expense		982			982
Net share settlement of nonvested shares and restricted stock units		(282)			(282)
Net share settlement of nonvested shares and restricted stock units (in shares)	(3,799)
Repurchase of common stock				$ (42,829)	(42,829)
Repurchase of common stock (in shares)				521,086
Net income (loss)			9,014		9,014
Balances at Oct. 30, 2021	$ 159	$ 95,914	$ 262,319	$ (249,132)	$ 109,260
Balances (in shares) at Oct. 30, 2021	15,967,965			7,377,836	15,967,965

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

Significant Accounting Policies

9 Months Ended

Oct. 30, 2021

Significant Accounting Policies

Significant Accounting Policies

1. Significant Accounting Policies

Basis of Presentation

Citi Trends, Inc. and its subsidiary (the “Company”) is a growing specialty value retailer of apparel, accessories and home trends primarily for African American and Latinx families. As of October 30, 2021, the Company operated 600 stores in urban, suburban and rural markets in 33 states.

The condensed consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim reporting and are unaudited. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The condensed consolidated balance sheet as of January 30, 2021 is derived from the audited financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended January 30, 2021 (the “2020 Form 10-K”). These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the 2020 Form 10-K. Operating results for the third quarter of 2021 are not necessarily indicative of the results that may be expected for the fiscal year as a result of the seasonality of the business and continued uncertainty surrounding the economic impact of the novel coronavirus, including variants of the coronavirus (“COVID-19”) and the duration and extent of any economic stimulus programs.

Fiscal Year

The following contains references to fiscal years 2021 and 2020, which represent fiscal years ending or ended on January 29, 2022 and January 30, 2021, respectively. Fiscal 2021 and 2020 both have 52-week accounting periods.

COVID-19 Update	9 Months Ended
COVID-19 Update	Oct. 30, 2021
COVID-19
COVID-19 Update
COVID-19 Update	2. COVID-19 Pandemic In March 2020, the World Health Organization declared the spread of the COVID-19 a global pandemic. The pandemic has resulted in periods of disruption for the Company, including the temporary closure of stores and limited store operating hours, reduced customer traffic and consumer spending, and delays in the manufacturing and shipping of products. The Company saw improvement in its financial results and positive trends during the latter half of 2020 and through the first three quarters of 2021 as governments eased restrictions and provided economic stimulus, along with the acceleration of vaccine distribution, leading to an increase in spending and increased customer demand. The Company expects continued uncertainty in its business and the global economy due to the COVID-19 pandemic, including potential volatility in employment trends and consumer confidence, current or future restrictive actions that may be imposed by governments or public health authorities, the duration and extent of any economic stimulus programs, supply chain interruptions, increased distribution and transportation costs, increased payroll expenses, and increased costs to maintain safe work and shopping environments. The impacts of the pandemic have had, and may continue to have, an adverse impact on the Company’s financial condition, results of operations and liquidity. The Company will continue to monitor the effects of COVID-19 and take the necessary actions to serve our associates, customers, communities and shareholders.

Cash and Cash Equivalents/Concentration of Credit Risk

9 Months Ended

Oct. 30, 2021

Cash and Cash Equivalents/Concentration of Credit Risk

Cash and Cash Equivalents/Concentration of Credit Risk

3. Cash and Cash Equivalents/Concentration of Credit Risk

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

Earnings per Share

9 Months Ended

Oct. 30, 2021

Earnings per Share

Earnings per Share

4. Earnings per Share

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

The dilutive effect of stock-based compensation arrangements is accounted for using the treasury stock method. The Company includes as assumed proceeds the amount of compensation cost attributed to future services and not yet recognized. For the thirteen weeks ended October 30, 2021 and October 31, 2020, there were 38,000 and 134,000 shares of nonvested restricted stock, respectively, excluded from the calculation of diluted earnings per share because of antidilution. For the thirty-nine weeks ended October 30, 2021 and October 31, 2020, there were 38,000 and 150,000 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
	October 30, 2021	October 31, 2020
Weighted average number of common shares outstanding	8,706,219	10,364,842
Incremental shares from assumed vesting of nonvested restricted stock	80,668	36,311
Weighted average number of common shares and common stock equivalents outstanding	8,786,887	10,401,153


	Thirty-Nine Weeks Ended
	October 30, 2021	October 31, 2020
Weighted average number of common shares outstanding	9,081,240	10,419,557
Incremental shares from assumed vesting of nonvested restricted stock	97,325	24,549
Weighted average number of common shares and common stock equivalents outstanding	9,178,565	10,444,106

Fair Value Measurement

9 Months Ended

Oct. 30, 2021

Fair Value Measurement

Fair Value Measurement

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 October 30, 2021, the Company’s investment securities are classified as held-to-maturity since the Company has the intent and ability to hold the investments to maturity. Such securities are carried at amortized cost plus accrued interest and consist of the following (in thousands):


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair Market
	Cost		Gains		Losses		Value
Short-term:
Corporate debt securities (Level 2)	$	28,676	$	—	$	(34)	$	28,642
Obligations of states and municipalities (Level 2)		6,786		—		(3)		6,783
	$	35,462	$	—	$	(37)	$	35,425

The amortized cost and fair market value of investment securities as of October 30, 2021 by contractual maturity are as follows (in thousands):



	Amortized		Fair Market
	Cost		Value
Mature in one year or less	$	35,462	$	35,425

- 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

9 Months Ended

Oct. 30, 2021

Impairment of Assets

Impairment of Assets

6. Impairment of Assets

If facts and circumstances indicate that a long-lived asset or operating lease right-of-use asset may be impaired, the carrying value is reviewed. If this review indicates that the carrying value of the asset will not be recovered as determined based on projected undiscounted cash flows related to the asset over its remaining life, the carrying value of the asset is reduced to its estimated fair value. There was no impairment expense recorded in the first thirty-nine weeks of 2021. In the first thirty-nine weeks of 2020, non-cash impairment charges related to an underperforming store totaled $0.3 million, comprised of $0.2 million for an operating lease right-of-use asset and $0.1 million for leasehold improvements and fixtures and equipment.

Revolving Credit Facility

9 Months Ended

Oct. 30, 2021

Revolving Credit Facility

Revolving Credit Facility

7. Revolving Credit Facility

In October 2011, the Company entered into a five-year, $50 million credit facility with Bank of America. The facility was amended in August 2015 and May 2020 to extend the maturity dates. The facility was further amended on April 15, 2021 to modify terms and extend the maturity date to April 15, 2026. The amended facility provides a $75 million credit commitment and a $25 million uncommitted “accordion” feature that under certain circumstances could allow the Company to increase the size of the facility to $100 million. The facility is secured by the Company’s inventory, accounts receivable and related assets, but not its real estate, fixtures and equipment, and it contains one financial covenant, a fixed charge coverage ratio, which is applicable and tested only in certain circumstances. The facility has an unused commitment fee of 0.20% and permits the payment of cash dividends subject to certain limitations. Borrowings under the credit facility bear interest (a) for Eurodollar Loans, at a rate equal to the Eurodollar Rate plus either 1.25%, 1.50% or 1.75%, or (b) for Base Rate Loans, at a rate equal to the highest of (i) the prime rate, (ii) the Federal Funds Rate plus 0.5% or (iii) the Eurodollar Rate plus 1.0%, plus, in each case either 0.25%, 0.50% or 0.75%, based in any such case on the average daily availability for borrowings under the facility. The Company had no borrowings under the credit facility as of October 30, 2021.

Income Taxes

9 Months Ended

Oct. 30, 2021

Income Taxes

Income Taxes

8. Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. If there is a change in tax rates, the Company would recognize the impact of such change in income in the period that includes the enactment date.

For the thirty-nine weeks ended October 30, 2021 and October 31, 2020, the Company utilized the annual effective tax rate method to calculate income taxes. The effective income tax rate was 21.5% for the first thirty-nine weeks of 2021, compared to 23.2% for the first thirty-nine weeks of 2020. The difference in the effective income tax rate was primarily due to a favorable tax impact of restricted stock vestings in the current year, partially offset by an increase in pretax income compared to the same period of 2020.

- 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 + Details

Commitments and Contingencies

9 Months Ended

Oct. 30, 2021

Commitments and Contingencies

Commitments and Contingencies

9. Commitments and Contingencies

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

Stock Repurchases

9 Months Ended

Oct. 30, 2021

Stock Repurchases

Stock Repurchases

10. Stock Repurchases

Repurchases of Common Stock

In November 2019, the Company’s board of directors approved a stock repurchase program that authorized the repurchase of up to $25 million of the Company’s common stock. In the first quarter of 2020, the Company repurchased 260,254 shares of its common stock at an aggregate cost of $6.3 million.

In March 2020, the Company’s board of directors approved another $30 million stock repurchase program. Shortly thereafter, due to the economic uncertainty stemming from the COVID-19 pandemic, the Company suspended its stock repurchase program until September 2020 when the program was reinstated. Further, the Company announced that its board of directors approved new $30 million stock repurchase programs in each of December 2020, June 2021 and August 2021.

In the first thirty-nine weeks of 2021, the Company repurchased 1,023,343 shares of its common stock under its repurchase programs at an aggregate cost of $85.3 million. In addition, the Company completed a block repurchase of 250,000 shares of its common stock at an aggregate cost of $21.9 million.

As of October 30, 2021, the Company had approximately $8.1 million available under its previously announced stock repurchase program. On November 30, 2021, the Company announced that its board of directors authorized another $30 million stock repurchase program.

Revenue

9 Months Ended

Oct. 30, 2021

Revenue

Revenue

11. Revenue

Revenue Recognition

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

Sales Returns

The Company allows customers to return merchandise for up to 30 days after the date of sale. Expected refunds to customers are recorded based on estimated margin using historical return information.

Disaggregation of Revenue

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

In the following table, the Company’s revenue is disaggregated by “CITI” or major merchandise category. The percentage of net sales for each CITI within the merchandise assortment was approximately:


	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	October 30,		October 31,		October 30,		October 31,
	2021		2020		2021		2020
Kids	26	%	24	%	22	%	22	%
Women	25	%	26	%	27	%	27	%
Men	17	%	17	%	18	%	17	%
Beauty & Accessories	17	%	15	%	17	%	16	%
Home & Lifestyle	8	%	10	%	8	%	9	%
Footwear	7	%	8	%	8	%	9	%

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Leases

9 Months Ended

Oct. 30, 2021

Leases

Leases

12. Leases

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

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


	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	October 30, 2021		October 31, 2020		October 30, 2021		October 31, 2020
Operating lease cost	$	13,320	$	12,453	$	39,384	$	36,918
Variable lease cost		2,685		2,333		8,264		6,458
Short term lease cost		213		355		775		1,172
Total lease cost	$	16,218	$	15,141	$	48,423	$	44,548

In response to the impact of the COVID-19 pandemic on the Company’s operations, the Company suspended certain lease payments in 2020 under its existing lease agreements. During the suspension of payments, the Company continued to recognize expenses and liabilities for lease obligations and corresponding right-of-use assets on the balance sheet in accordance with the applicable accounting guidance. The Company continues to engage in discussions with landlords regarding the potential restructuring of lease payments and rent concessions. As of October 30, 2021, the Company negotiated contractual rent concessions on many leases in the form of early renewals, rent deferrals and rent abatements. The Company elected to account for qualifying COVID-19 related rent concessions as if they were part of the enforceable rights and obligations under the existing lease agreements, as permitted by the updated guidance provided by the Financial Accounting Standards Board in April 2020. As a result of this election, the Company recognized rent abatement credits of approximately $0.1 million and $0.8 million during the thirteen weeks ended October 30, 2021 and October 31, 2020, respectively.

Future minimum lease payments as of October 30, 2021 are as follows (in thousands):


Fiscal Year	Lease Costs
Remainder of 2021	$	10,694
2022		54,646
2023		47,252
2024		38,686
2025		28,346
Thereafter		48,062
Total future minimum lease payments		227,686
Less: imputed interest		(17,155)	(1)
Total present value of lease liabilities	$	210,531	(2)

(1)

Calculated using the discount rate for each lease.

(2)

Includes short-term and long-term portions of operating lease liabilities.

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

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


	Thirty-Nine Weeks Ended
	October 30, 2021		October 31, 2020
Cash paid for operating leases	$	42,315	$	32,870
Right of use assets obtained in exchange for new operating lease liabilities	$	54,263	$	50,926

Weighted average remaining lease term (years) - operating leases		5.31		5.24
Weighted average discount rate - operating leases		2.89%		3.16%

Significant Accounting Policies (Policies)	9 Months Ended
Significant Accounting Policies (Policies)	Oct. 30, 2021
Significant Accounting Policies
Basis of Presentation	Basis of Presentation Citi Trends, Inc. and its subsidiary (the “Company”) is a growing specialty value retailer of apparel, accessories and home trends primarily for African American and Latinx families. As of October 30, 2021, the Company operated 600 stores in urban, suburban and rural markets in 33 states. The condensed consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim reporting and are unaudited. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The condensed consolidated balance sheet as of January 30, 2021 is derived from the audited financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended January 30, 2021 (the “2020 Form 10-K”). These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the 2020 Form 10-K. Operating results for the third quarter of 2021 are not necessarily indicative of the results that may be expected for the fiscal year as a result of the seasonality of the business and continued uncertainty surrounding the economic impact of the novel coronavirus, including variants of the coronavirus (“COVID-19”) and the duration and extent of any economic stimulus programs.
Fiscal Year	Fiscal Year The following contains references to fiscal years 2021 and 2020, which represent fiscal years ending or ended on January 29, 2022 and January 30, 2021, respectively. Fiscal 2021 and 2020 both have 52-week accounting periods.

Earnings per Share (Tables)

9 Months Ended

Oct. 30, 2021

Earnings per Share

Schedule of reconciliation of the number of average common shares outstanding used to calculate basic and diluted earnings per share


	Thirteen Weeks Ended
	October 30, 2021	October 31, 2020
Weighted average number of common shares outstanding	8,706,219	10,364,842
Incremental shares from assumed vesting of nonvested restricted stock	80,668	36,311
Weighted average number of common shares and common stock equivalents outstanding	8,786,887	10,401,153


	Thirty-Nine Weeks Ended
	October 30, 2021	October 31, 2020
Weighted average number of common shares outstanding	9,081,240	10,419,557
Incremental shares from assumed vesting of nonvested restricted stock	97,325	24,549
Weighted average number of common shares and common stock equivalents outstanding	9,178,565	10,444,106

Fair Value Measurement (Tables)

9 Months Ended

Oct. 30, 2021

Fair Value Measurement

Schedule of investment securities classified as held-to-maturity


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair Market
	Cost		Gains		Losses		Value
Short-term:
Corporate debt securities (Level 2)	$	28,676	$	—	$	(34)	$	28,642
Obligations of states and municipalities (Level 2)		6,786		—		(3)		6,783
	$	35,462	$	—	$	(37)	$	35,425

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



	Amortized		Fair Market
	Cost		Value
Mature in one year or less	$	35,462	$	35,425

Revenue (Tables)

9 Months Ended

Oct. 30, 2021

Revenue

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


	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	October 30,		October 31,		October 30,		October 31,
	2021		2020		2021		2020
Kids	26	%	24	%	22	%	22	%
Women	25	%	26	%	27	%	27	%
Men	17	%	17	%	18	%	17	%
Beauty & Accessories	17	%	15	%	17	%	16	%
Home & Lifestyle	8	%	10	%	8	%	9	%
Footwear	7	%	8	%	8	%	9	%

Leases (Tables)

9 Months Ended

Oct. 30, 2021

Leases

Schedule of lease expense

Lease costs consisted of the following (in thousands):


	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	October 30, 2021		October 31, 2020		October 30, 2021		October 31, 2020
Operating lease cost	$	13,320	$	12,453	$	39,384	$	36,918
Variable lease cost		2,685		2,333		8,264		6,458
Short term lease cost		213		355		775		1,172
Total lease cost	$	16,218	$	15,141	$	48,423	$	44,548

Schedule of future minimum rent payments under operating leases


Fiscal Year	Lease Costs
Remainder of 2021	$	10,694
2022		54,646
2023		47,252
2024		38,686
2025		28,346
Thereafter		48,062
Total future minimum lease payments		227,686
Less: imputed interest		(17,155)	(1)
Total present value of lease liabilities	$	210,531	(2)

(1)

Calculated using the discount rate for each lease.

(2)

Includes short-term and long-term portions of operating lease liabilities.

Schedule of supplemental cash flow and other information

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


	Thirty-Nine Weeks Ended
	October 30, 2021		October 31, 2020
Cash paid for operating leases	$	42,315	$	32,870
Right of use assets obtained in exchange for new operating lease liabilities	$	54,263	$	50,926

Weighted average remaining lease term (years) - operating leases		5.31		5.24
Weighted average discount rate - operating leases		2.89%		3.16%

Significant Accounting Policies (Details)	12 Months Ended
Significant Accounting Policies (Details)	Jan. 29, 2022	Jan. 30, 2021	Oct. 30, 2021 state store
Significant Accounting Policies
Number of stores operated \| store			600
Number of states in which company operates \| state			33
Length of fiscal year	364 days	364 days

Earnings per Share (Details) - shares	3 Months Ended		9 Months Ended
Earnings per Share (Details) - shares	Oct. 30, 2021	Oct. 31, 2020	Oct. 30, 2021	Oct. 31, 2020
Reconciliation of average number of common shares outstanding used to calculate basic and diluted earnings per share
Weighted average number of common shares outstanding	8,706,219	10,364,842	9,081,240	10,419,557
Incremental shares from assumed vesting of nonvested restricted stock	80,668	36,311	97,325	24,549
Weighted average number of common shares and common stock equivalents outstanding	8,786,887	10,401,153	9,178,565	10,444,106
Restricted Stock
Antidilutive securities
Shares excluded from the calculation of diluted earnings per share	38,000	134,000	38,000	150,000

Fair Value Measurement - Securities Carried at Amortized Cost Plus Accrued Interest (Details) $ in Thousands	Oct. 30, 2021 USD ($)
Investment securities classified as held to maturity
Amortized Cost	$ 35,462
Gross Unrealized Losses	(37)
Fair Market Value	35,425
Corporate debt securities \| Fair Value, Inputs, Level 2
Investment securities classified as held to maturity
Amortized Cost	28,676
Gross Unrealized Losses	(34)
Fair Market Value	28,642
Obligations of states and municipalities \| Fair Value, Inputs, Level 2
Investment securities classified as held to maturity
Amortized Cost	6,786
Gross Unrealized Losses	(3)
Fair Market Value	$ 6,783

Fair Value Measurement - Amortized Cost and Fair Market Value of Securities by Contractual Maturity (Details) $ in Thousands	Oct. 30, 2021 USD ($)
Amortized Cost
Mature in one year or less	$ 35,462
Total	35,462
Fair Market Value
Mature in one year or less	35,425
Fair Market Value	$ 35,425

Impairment of Assets (Details) - USD ($) $ in Thousands	9 Months Ended
Impairment of Assets (Details) - USD ($) $ in Thousands	Oct. 30, 2021	Oct. 31, 2020
Impairment of Assets
Operating lease right-of-use asset impairment	$ 200
Store asset impairment	300
Asset impairment	0	$ 286
Leasehold improvements and fixtures and equipment impairment	$ 100

Revolving Credit Facility (Details) $ in Thousands			9 Months Ended
Revolving Credit Facility (Details) $ in Thousands	Apr. 15, 2021 USD ($) bbl / agreement	Oct. 27, 2011 USD ($)	Oct. 30, 2021 USD ($)	Oct. 31, 2020 USD ($)
Revolving Line of Credit
Borrowings under revolving credit facility			$ 0	$ 43,700
Line of Credit
Revolving Line of Credit
Term of credit facility		5 years
Maximum borrowing capacity	$ 75,000	$ 50,000
Borrowing capacity, accordion feature	25,000
Maximum borrowing capacity including accordion expansion	$ 100,000
Number of covenants \| bbl / agreement	1
Unused commitment fee (as a percent)	0.20%
Line of Credit \| Eurodollar Rate
Revolving Line of Credit
Increase pricing for loans (as a percent)	1.00%
Line of Credit \| Federal Funds Rate
Revolving Line of Credit
Margin added to variable rate (as a percent)	0.50%
First interest rate \| Line of Credit \| Eurodollar Rate
Revolving Line of Credit
Margin added to variable rate (as a percent)	1.25%
First interest rate \| Line of Credit \| Federal Funds or Eurodollar Rate
Revolving Line of Credit
Margin added to variable rate (as a percent)	0.25%
Second interest rate \| Line of Credit \| Eurodollar Rate
Revolving Line of Credit
Margin added to variable rate (as a percent)	1.50%
Second interest rate \| Line of Credit \| Federal Funds or Eurodollar Rate
Revolving Line of Credit
Margin added to variable rate (as a percent)	0.50%
Third interest rate \| Line of Credit \| Eurodollar Rate
Revolving Line of Credit
Margin added to variable rate (as a percent)	1.75%
Third interest rate \| Line of Credit \| Federal Funds or Eurodollar Rate
Revolving Line of Credit
Margin added to variable rate (as a percent)	0.75%

Income Taxes (Details)	9 Months Ended
Income Taxes (Details)	Oct. 30, 2021	Oct. 31, 2020
Income Taxes
Effective income tax rate	21.50%	23.20%

Stock Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended					9 Months Ended
	Oct. 30, 2021	Jul. 31, 2021	May 01, 2021	Oct. 31, 2020	May 02, 2020	Oct. 30, 2021	Nov. 30, 2021	Dec. 31, 2020	Mar. 31, 2020	Nov. 30, 2019
Stockholders' Equity
Stock Repurchased During Period, Value	$ 42,829	$ 18,907	$ 45,470	$ 9,888	$ 6,254
Dividends paid to stockholders					$ 0.08
Remaining value of shares available for repurchase	$ 8,100					$ 8,100
2019 repurchases of common stock
Stockholders' Equity
Stock Repurchase Program, Authorized Amount										$ 25,000
Stock Repurchased During Period, Shares					260,254
Stock Repurchased During Period, Value					$ 6,300
2020 repurchases of common stock
Stockholders' Equity
Stock Repurchase Program, Authorized Amount								$ 30,000	$ 30,000
2021 repurchases of common stock
Stockholders' Equity
Stock Repurchase Program, Authorized Amount							$ 30,000
Stock Repurchased During Period, Shares						1,023,343
Stock Repurchased During Period, Value						$ 85,300
2021 block repurchases of common stock
Stockholders' Equity
Stock Repurchased During Period, Shares						250,000
Stock Repurchased During Period, Value						$ 21,900

Revenue - Returns and Disaggregation of Revenue (Details)	3 Months Ended		9 Months Ended
	Oct. 30, 2021	Oct. 31, 2020	Oct. 30, 2021	Oct. 31, 2020
Revenue, initial application period, cumulative effect transition
Period of time company allows customers to return merchandise			30 days
Kids
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	26.00%	24.00%	22.00%	22.00%
Women
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	25.00%	26.00%	27.00%	27.00%
Men
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	17.00%	17.00%	18.00%	17.00%
Beauty & Accessories
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	17.00%	15.00%	17.00%	16.00%
Home & Lifestyle
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	8.00%	10.00%	8.00%	9.00%
Footwear
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	7.00%	8.00%	8.00%	9.00%

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Leases - Lease Cost (Details) - USD ($) $ in Thousands	Oct. 30, 2021	Oct. 31, 2020	Oct. 30, 2021	Oct. 31, 2020
Leases
Lease term	5 years		5 years
Operating lease cost	$ 13,320	$ 12,453	$ 39,384	$ 36,918
Variable lease cost	2,685	2,333	8,264	6,458
Short term lease cost	213	355	775	1,172
Total lease cost	$ 16,218	$ 15,141	$ 48,423	$ 44,548
Minimum
Leases
Extension term	1 year		1 year
Maximum
Leases
Extension term	5 years		5 years

Leases - COVID-19 Update (Details) - USD ($) $ in Millions	3 Months Ended
Leases - COVID-19 Update (Details) - USD ($) $ in Millions	Oct. 30, 2021	Oct. 31, 2020
Leases
Rent abatements due to the number of leases renegotiated in response to the negative financial impacts of COVID-19	$ 0.1	$ 0.8

Leases - Future Minimum Lease Payments (Details) $ in Thousands	Oct. 30, 2021 USD ($)
Future minimum lease payments under operating leases
Remainder of 2021	$ 10,694
2022	54,646
2023	47,252
2024	38,686
2025	28,346
Thereafter	48,062
Total future minimum lease payments	227,686
Less: imputed interest	(17,155)
Total present value of lease liabilities	$ 210,531

Leases - Cash flow and other information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 30, 2021	Oct. 31, 2020	Oct. 30, 2021	Oct. 31, 2020
Supplemental cash flow and other information related to operating leases
Rent abatements due to the number of leases renegotiated in response to the negative financial impacts of COVID-19	$ 100	$ 800
Cash paid for operating leases			$ 42,315	$ 32,870
Right of use assets obtained in exchange for new operating lease liabilities			$ 54,263	$ 50,926
Weighted average remaining lease term - operating leases	5 years 3 months 21 days	5 years 2 months 26 days	5 years 3 months 21 days	5 years 2 months 26 days
Weighted average discount rate - operating leases (as a percent)	2.89%	3.16%	2.89%	3.16%