0001558370-22-005426 | 10-K | XBRL Viewer

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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Jan. 29, 2022	Jan. 30, 2021	Apr. 08, 2022	Jul. 31, 2021
Document and Entity Information
Document Type	10-K
Document Period End Date	Jan. 29, 2022
Document Annual 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, $.01 Par Value
Trading Symbol	CTRN
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
ICFR Auditor Attestation Flag	true
Entity Public Float				$ 682,276,483
Entity Common Stock, Shares Outstanding			8,670,237
Current Fiscal Year End Date	--01-29
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	FY
Entity Central Index Key	0001318484
Amendment Flag	false
Auditor Firm ID	34	185
Auditor Name	Deloitte & Touche LLP	KPMG LLP
Auditor Location	Atlanta, Georgia	Jacksonville, Florida

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jan. 29, 2022	Jan. 30, 2021
Current assets:
Cash and cash equivalents	$ 49,788	$ 123,177
Inventory	123,835	103,845
Prepaid and other current assets	14,997	17,420
Income tax receivable	3,987
Total current assets	192,607	244,442
Property and equipment, net of accumulated depreciation	75,282	63,514
Operating lease right of use assets	201,827	179,673
Deferred income taxes	2,992	6,195
Other assets	1,317	769
Total assets	474,025	494,593
Current liabilities:
Accounts payable	98,879	84,832
Operating lease liabilities	47,803	46,983
Accrued expenses	14,532	16,592
Accrued compensation	25,896	29,315
Income tax payable		4,623
Layaway deposits	364	500
Total current liabilities	187,474	182,845
Noncurrent operating lease liabilities	168,304	145,828
Other long-term liabilities	2,104	2,286
Total liabilities	357,882	330,959
Stockholders' equity:
Common stock, $0.01 par value. Authorized 32,000,000 shares; 16,090,365 shares issued as of January 29, 2022 and 15,981,394 shares issued as of January 30, 2021; 8,617,210 shares outstanding as of January 29, 2022 and 9,876,901 shares outstanding as of January 30, 2021	159	158
Paid in capital	101,037	95,484
Retained earnings	272,158	209,918
Treasury stock, at cost; 7,473,155 shares held as of January 29, 2022 and 6,104,493 shares held as of January 30, 2021	(257,211)	(141,926)
Total stockholders' equity	116,143	163,634
Commitments and contingencies (note 7)
Total liabilities and stockholders' equity	$ 474,025	$ 494,593

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jan. 29, 2022	Jan. 30, 2021
Condensed Consolidated Balance Sheets
Accumulated depreciation	$ 283,445	$ 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	16,090,365	15,981,394
Common stock, shares outstanding	8,617,210	9,876,901
Treasury stock, shares	7,473,155	6,104,493

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Jan. 29, 2022	Jan. 30, 2021	Feb. 01, 2020
Consolidated Statements of Operations
Net sales	$ 991,595	$ 783,294	$ 781,925
Revenue, Product and Service [Extensible List]	us-gaap:ProductMember	us-gaap:ProductMember	us-gaap:ProductMember
Cost of sales (exclusive of depreciation shown separately below)	$ (584,063)	$ (471,618)	$ (484,740)
Selling, general and administrative expenses	(307,622)	(260,198)	(259,629)
Depreciation	(20,393)	(19,259)	(18,535)
Asset impairment		(286)	(472)
Income from operations	79,517	31,933	18,549
Interest income	31	238	1,577
Interest expense	(306)	(776)	(158)
Income before income taxes	79,242	31,395	19,968
Income tax expense	(17,002)	(7,417)	(3,465)
Net income	$ 62,240	$ 23,978	$ 16,503
Basic net income per common share	$ 6.98	$ 2.33	$ 1.41
Diluted net income per common share	$ 6.91	$ 2.32	$ 1.41
Weighted average number of shares outstanding
Basic	8,911,810	10,282,718	11,673,887
Diluted	9,012,932	10,325,239	11,699,000

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jan. 29, 2022	Jan. 30, 2021	Feb. 01, 2020
Operating activities:
Net income	$ 62,240	$ 23,978	$ 16,503
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	20,393	19,259	18,535
Non-cash operating lease costs	50,455	48,242	45,463
Asset impairment		286	472
Loss on disposal of property and equipment	201	39	23
Deferred income taxes	3,203	474	(130)
Insurance proceeds related to operating activities	804	1,042	1,012
Non-cash stock-based compensation expense	4,776	2,912	2,121
Changes in assets and liabilities:
Inventory	(20,381)	33,564	1,216
Prepaid and other current assets	2,011	(7,718)	(1,588)
Other assets	(278)	(14)	(10)
Accounts payable	12,833	5,083	5,560
Accrued expenses and other long-term liabilities	(53,187)	(38,346)	(45,282)
Accrued compensation	(5)	16,302	267
Income tax payable/receivable	(8,610)	5,809	(1,581)
Layaway deposits	(136)	(54)	28
Net cash provided by operating activities	74,319	110,858	42,609
Investing activities:
Sales/redemptions of investment securities	35,272	43,759	59,836
Purchases of investment securities	(35,272)	(522)	(43,840)
Purchases of property and equipment	(29,707)	(16,956)	(24,175)
Insurance proceeds related to investing activities	192	416	573
Net cash (used in) provided by investing activities	(29,515)	26,697	(7,606)
Financing activities:
Borrowings under revolving credit facility		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	(2,638)	(608)	(733)
Dividends paid to stockholders		(832)	(3,765)
Repurchases of common stock	(115,285)	(32,861)	(28,445)
Net cash used in financing activities	(118,193)	(34,301)	(32,943)
Net (decrease) increase in cash and cash equivalents	(73,389)	103,254	2,060
Cash and cash equivalents:
Beginning of year	123,177	19,923	17,863
End of year	49,788	123,177	19,923
Supplemental disclosures of cash flow information:
Cash paid for interest	176	731	127
Cash payments of income taxes	22,409	1,134	4,477
Supplemental disclosures of non-cash investing activities:
Accrual for purchases of property and equipment	2,847	$ 1,392	$ 4,000
Conversion of nonvested cash-settled units to nonvested shares under incentive plan	$ 3,415

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Paid in Capital	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	Retained Earnings	Treasury Stock	Cumulative Effect, Period of Adoption, Adjustment	Total
Balances at Feb. 02, 2019	$ 157	$ 91,794	$ (2,060)	$ 176,094	$ (80,620)	$ (2,060)	$ 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
Vesting of nonvested restricted stock units (in shares)	18,851
Issuance of nonvested shares under incentive plan (in shares)	122,816
Forfeiture of nonvested shares (in shares)	(24,359)
Stock-based compensation expense		2,121					2,121
Net share settlement of nonvested shares and units	$ (1)	(735)					(736)
Net share settlement of nonvested shares and units (in shares)	(37,355)
Repurchase of common stock					$ (28,445)		$ (28,445)
Repurchase of common stock (in shares)					1,404,056		1,404,000
Dividends paid to stockholders				(3,765)			$ (3,765)
Net income				16,503			16,503
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)	127,880
Forfeiture of nonvested shares (in shares)	(15,218)
Stock-based compensation expense		2,912					2,912
Net share settlement of nonvested shares and units		(608)					(608)
Net share settlement of nonvested shares and units (in shares)	(38,934)
Repurchase of common stock					$ (32,861)		$ (32,861)
Repurchase of common stock (in shares)					1,030,961		1,031,000
Dividends paid to stockholders				(832)			$ (832)
Net income				23,978			23,978
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
Conversion of nonvested cash-settled units to nonvested shares under incentive plan		3,415					$ 3,415
Conversion of nonvested cash-settled units to nonvested shares under incentive plan (in shares)	123,478
Vesting of nonvested restricted stock units	$ 1						1
Issuance of nonvested shares under incentive plan (in shares)	23,539
Forfeiture of nonvested shares (in shares)	(9,166)
Stock-based compensation expense		4,776					4,776
Net share settlement of nonvested shares and units		(2,638)					(2,638)
Net share settlement of nonvested shares and units (in shares)	(28,880)
Repurchase of common stock					$ (115,285)		$ (115,285)
Repurchase of common stock (in shares)					1,368,662		1,369,000
Net income				62,240			$ 62,240
Balances at Jan. 29, 2022	$ 159	$ 101,037		$ 272,158	$ (257,211)		$ 116,143
Balances (in shares) at Jan. 29, 2022	16,090,365				7,473,155		16,090,365

Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Jan. 30, 2021	Feb. 01, 2020
Consolidated Statements of Stockholders' Equity
Dividends paid to stockholders	$ 0.08	$ 0.08

Organization and Business

12 Months Ended

Jan. 29, 2022

Organization and Business

Organization and Business

1. Organization and Business

Citi Trends, Inc. and its subsidiary (the “Company”) is a growing specialty value retailer of apparel, accessories and home trends for way less spend primarily for African American and Latinx families in the United States. As of January 29, 2022, the Company operated 609 stores in urban, suburban and rural markets in 33 states.

Since early 2020, the global economy has been affected by COVID-19. The COVID-19 pandemic has caused, and may continue to cause, significant volatility and disruptions in the Company’s business, 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. Certain government actions to gradually ease restrictions, provide economic stimulus and distribute vaccines have resulted in signs of economic recovery. However, the Company cannot reasonably predict the extent to which our future business will be impacted by the pandemic.

Summary of Significant Accounting Policies

12 Months Ended

Jan. 29, 2022

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Principles of Consolidation

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

Fiscal Year

The Company’s fiscal year ends on the Saturday closest to January 31 of each year. The years ended January 29, 2022, January 30, 2021 and February 1, 2020 are referred to as fiscal 2021, fiscal 2020 and fiscal 2019, respectively, in the accompanying consolidated financial statements. Fiscal 2021, 2020 and 2019 are all comprised of 52 weeks.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and apply judgments that affect the reported amounts. Actual results could differ from those estimates.

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

Cash and Cash Equivalents/Concentration of Credit Risk

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

Inventory

Inventory is stated at the lower of cost (first-in, first-out basis) or net realizable value as determined by the retail inventory method for store inventory and the average cost method for distribution center inventory. Under the retail inventory method, the cost of inventory is determined by calculating a cost-to-retail ratio and applying it to the retail value of inventory. Merchandise markdowns are reflected in the inventory valuation when the retail price of an item is lowered in the stores. Inventory is recorded net of an allowance for shrinkage based on the most recent physical inventory counts and other assumptions for shrinkage activity. The allowance for inventory shrinkage was $4.4 million as of January 29, 2022 and $5.2 million as of January 30, 2021.

Property and Equipment, net

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

Impairment of Long-Lived Assets

If facts and circumstances indicate that a long-lived asset may be impaired, the carrying value is reviewed. If this review indicates that the carrying value of the asset 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 in fiscal 2021. Non-cash impairment expense in fiscal 2020 and 2019 totaled $0.3 million and $0.5 million, respectively, related primarily to leasehold improvements and fixtures and equipment at underperforming stores.

Insurance Liabilities

The Company is largely self-insured for workers’ compensation costs, general liability claims and employee medical claims. The Company’s self-insured retention or deductible, as applicable, for each claim involving workers’ compensation and employee medical is limited to $250,000 and $100,000, respectively. Self-insurance liabilities are based on the total estimated costs of claims filed and estimates of claims incurred but not reported, less amounts paid against such claims. Current and historical claims data, together with information from actuarial studies, are used in developing the estimates. The insurance liabilities that are recorded are primarily influenced by the frequency and severity of claims and the Company’s growth. If the underlying facts and circumstances related to the claims change, then the Company may be required to record more or less expense which could be material in relation to results of operations.

Stock-Based Compensation

The Company recognizes compensation expense associated with all nonvested restricted stock and performance-based restricted stock units based on the grant-date fair value of each award. The fair value of the awards is calculated based on the stock price on the grant date, incorporating an analysis of the performance measure where applicable. Compensation expense is recognized ratably over the requisite service period. See Note 6 for additional information on the Company’s stock-based compensation plans.

Revenue Recognition

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

Sales Returns

The Company allows customers to return merchandise for up to thirty days after the date of sale. Expected refunds to customers are recorded based on estimated margin using historical return information. The refund liability for merchandise returns is recorded in accrued expenses on the consolidated balance sheet and totaled $0.2 million and $0.3 million as of January 29, 2022 and January 30, 2021. The corresponding asset for the recoverable cost of expected refunds is included in prepaid and other current assets and totaled $0.1 million as of both January 29, 2022 and January 30, 2021.

Disaggregation of Revenue

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


	Fiscal Year
Citis	2021		2020		2019
Ladies	26	%	26	%	26	%
Kids	22	%	23	%	23	%
Mens	18	%	18	%	16	%
Accessories & Beauty	18	%	16	%	17	%
Home & Lifestyle	9	%	9	%	7	%
Footwear	7	%	8	%	11	%

Cost of Sales

Cost of sales includes the cost of inventory sold during the period and transportation costs, including inbound freight related to inventory sold and freight from the distribution centers to the stores, net of discounts and allowances. Distribution center costs, store

occupancy expenses and advertising expenses are not considered components of cost of sales and are included as part of selling, general and administrative expenses. Depreciation is also not considered a component of cost of sales and is included as a separate line item in the consolidated statements of operations. Distribution center costs (exclusive of depreciation) for fiscal 2021, 2020 and 2019 were $24.9 million, $20.3 million and $20.8 million, respectively.

Earnings per Share

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

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


	Fiscal Year
	2021	2020	2019
Weighted average number of common shares outstanding	8,911,810	10,282,718	11,673,887
Incremental shares from assumed vesting of nonvested restricted stock	101,122	42,521	25,113
Average number of common shares and common stock equivalents outstanding	9,012,932	10,325,239	11,699,000

The dilutive effect of stock-based compensation arrangements is accounted for using the treasury stock method. The Company includes as assumed proceeds the amount of compensation costs attributed to future services and not yet recognized. For fiscal 2021, 2020 and 2019, respectively, there were 47,000, 131,000 and 128,000 shares of nonvested restricted stock excluded from the calculation of diluted earnings per share because of antidilution.

Advertising

The Company expenses advertising as incurred. Advertising expense for fiscal 2021, 2020 and 2019 was $1.2 million, $1.6 million and $1.8 million, respectively.

Operating Leases

The Company leases all of its retail store locations and certain office space and equipment. All leases are classified as operating leases. The Company records right-of-use assets and lease liabilities based on the present value of future minimum lease payments using an incremental borrowing rate. The incremental borrowing rate is determined based on rates and terms from the Company’s existing borrowing facility with adjustments to bridge for differences in collateral, terms and payments. Lease costs are recognized over the estimated term of the lease, which includes any reasonably certain lease periods associated with available renewal periods. Lease expense for fixed lease payments is recognized on a straight-line basis over the lease term. In addition, certain leases provide for contingent rents that are not measurable at inception. These contingent rents are primarily based on a percentage of net sales that are in excess of a predetermined level. These amounts are excluded from minimum rent and included in the determination of total rent expense when it is probable that the expense has been incurred and the amount can be reasonably estimated. If an operating lease asset is impaired, the remaining operating lease asset will be amortized on a straight-line basis over the remaining lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet.

The Company adopted ASU 2016-20, Leases (Topic 842), as amended, on February 3, 2019 using the optional transition method that allowed for prospective application of the standard. The Company elected the package of practical expedients for transition that retained the lease classification and initial direct costs for any leases that existed prior to adoption of the standard. Further, the Company elected to account for lease and non-lease components as a single lease component. Lease impairment, net of the related deferred taxes, totaled approximately $2.1 million as of February 3, 2019 and is reflected as an adjustment to retained earnings at the transition date.

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.

Business Operating Segment

The Company is a specialty value retailer of fashion apparel, accessories and home goods for the entire family. The retail operations represent a single operating segment based on the way the Company manages its business. Operating decisions and resource allocation decisions are made at the Company level in order to maintain a consistent retail store presentation. The Company’s retail stores sell similar products, use similar processes to sell those products, and sell their products to similar classes of customers. All sales and assets are located within the United States.

Property and Equipment, net

12 Months Ended

Jan. 29, 2022

Property and Equipment, net

Property and Equipment, net

3. Property and Equipment, net

Property and equipment, net, consists of the following (in thousands):


	January 29,		January 30,
	2022		2021
Land	$	479	$	479
Buildings		32,378		31,642
Leasehold improvements		117,604		108,818
Furniture, fixtures and equipment		156,215		148,332
Computer equipment		45,804		42,414
Construction in progress		6,247		10,909
		358,727		342,594
Accumulated depreciation		(283,445)		(279,080)
	$	75,282	$	63,514

Revolving Credit Facility

12 Months Ended

Jan. 29, 2022

Revolving Credit Facility

Revolving Credit Facility

4. Revolving Line of Credit

On October 27, 2011, the Company entered into a five-year, $50 million credit facility with Bank of America. The facility was amended in August 2015 and May 2020 to extend the maturity dates. The facility was further amended on April 15, 2021 to modify terms and extend the maturity date to April 15, 2026.

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.

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. On September 11, 2020, the Company repaid the full amount outstanding under the credit facility. Such borrowings accrued interest ranging from 1.625% to 3.5%.

As of January 29, 2022, the Company had no borrowings under the credit facility and $0.6 million of letters of credit outstanding.

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
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-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
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-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Income Taxes

12 Months Ended

Jan. 29, 2022

Income Taxes

Income Taxes

5. Income Taxes

Income tax expense consists of the following (in thousands):


	Fiscal Year
	2021		2020		2019
Current:
Federal	$	(11,326)	$	(5,538)	$	(2,650)
State		(2,473)		(1,405)		(945)
Total current		(13,799)		(6,943)		(3,595)
Deferred:
Federal		(2,629)		(588)		104
State		(574)		114		26
Total deferred		(3,203)		(474)		130
Total income tax expense	$	(17,002)	$	(7,417)	$	(3,465)

Income tax expense computed using the federal statutory rate is reconciled to the reported income tax expense as follows (in thousands):


	Fiscal Year
	2021		2020		2019
Statutory rate applied to income before income taxes	$	(16,641)	$	(6,593)	$	(4,193)
State income taxes, net of federal benefit		(2,936)		(1,777)		(791)
State tax credits		152		168		308
State tax credits - valuation allowance (net of federal benefit)		158		—		(99)
Tax exempt interest		—		—		34
General business credits		1,433		878		1,456
Nondeductible compensation		(455)		—		—
Excess (deficit) tax benefits from stock-based compensation		1,226		(58)		(83)
Other		61		(35)		(97)
Income tax expense	$	(17,002)	$	(7,417)	$	(3,465)

Deferred tax assets and deferred tax liabilities consist of the following (in thousands):


	January 29,		January 30,
	2022		2021
Deferred tax assets:
Inventory capitalization	$	1,910	$	1,628
Vacation liability		781		754
Operating lease liabilities		55,088		49,763
State tax credits		3,033		3,033
Stock compensation		2,233		1,598
Deferral of FICA tax		—		416
Legal expense reserve		—		128
Insurance liabilities		778		646
Other		620		532
Subtotal deferred tax assets		64,443		58,498
Less: State tax credits valuation allowance - net		(1,556)		(1,714)
Total deferred tax assets		62,887		56,784

Deferred tax liabilities:
Right of use asset		(53,342)		(47,672)
Book and tax depreciation differences		(5,574)		(2,040)
Prepaid expenses		(979)		(877)
Total deferred tax liabilities		(59,895)		(50,589)
Net deferred tax asset	$	2,992	$	6,195

The Company files income tax returns in U.S. federal and state jurisdictions where it does business and is subject to examinations by the Internal Revenue Service (“IRS”) and other taxing authorities. With a few exceptions, the Company is no longer subject to U.S. federal and state income tax examinations by tax authorities for years prior to fiscal 2016. The Company reviews and assesses uncertain tax positions, if any, with recognition and measurement of tax benefit based on a “more-likely-than-not” standard with respect to the ultimate outcome, regardless of whether this assessment is favorable or unfavorable. As of January 29, 2022, there were no benefits taken on the Company’s income tax returns that do not qualify for financial statement recognition. If a tax position does not meet the minimum statutory threshold to avoid payment of penalties and interest, a company is required to recognize an expense for the amount of the interest and penalty in the period in which the company claims or expects to claim the position on its tax return. For financial statement purposes, companies are allowed to elect whether to classify such charges as either income tax expense or another expense classification. Should such expense be incurred in the future, the Company will classify such interest as a component of interest expense and penalties as a component of income tax expense.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible and income tax credits may be utilized, management believes it is more likely than not that the Company will realize the benefits of these deductible differences with the exception of certain tax credits available in one state. Beginning in 2011, the Company concluded that its ability to utilize a portion of such state’s tax credits was no longer more likely than not. Such recognition resulted in the establishment of a valuation allowance which necessitated a charge to income tax expense and a reduction in deferred tax assets. Subsequent to 2011, the Company has continued to earn such state credits and has further adjusted the related valuation allowance. At January 29, 2022, the valuation allowance, net of federal tax benefit, totaled $1.6 million.

The effective income tax rate for fiscal 2021, 2020 and 2019 included the recognition of benefits arising from various federal and state tax credits. Under current IRS and state income tax regulations, these credits may be carried back for one year or carried forward for periods up to 20 years. The income tax benefit included $1.6 million, $1.7 million and $1.7 million related to such credits in each of fiscal 2021, 2020 and 2019, respectively.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Stockholders' Equity

12 Months Ended

Jan. 29, 2022

Stockholders' Equity

Stockholders' Equity

6. Stockholders’ Equity

Repurchases of common stock

The Company periodically repurchases shares of its common stock under board-authorized repurchase programs. Such repurchases may be made in the open market, through block trades or through other negotiated transactions. Share repurchases are as follows (in thousands, except per share data):


	Fiscal Year
	2021		2020		2019
Total number of shares purchased		1,369		1,031		1,404
Average price paid per share (including commissions)	$	84.23	$	31.87	$	20.26
Total investment	$	115,285	$	32,861	$	28,445

At January 29, 2022, $30.0 million remained available under the Company’s stock repurchase authorization. In March 2022, the Company announced that its board of directors approved an additional $30.0 million stock repurchase program.

Stock-Based Compensation

The Company maintains the Citi Trends, Inc. Incentive Plan (the “Plan”) which permits the grant of stock-based incentive awards to employees, officers, directors and consultants. The Plan provides for the grant of incentive and nonqualified options, stock appreciation rights, restricted stock, restricted stock units, performance awards and other forms of stock-based and cash-based compensation. At January 29, 2022, the Company had 678,356 shares reserved for future grants under the Plan. During fiscal 2021, 2020 and 2019, non-cash stock-based compensation expense recorded in selling and general and administrative expenses totaled $4.8 million, $2.9 million and $2.1 million, respectively. The income tax (benefit) expense resulting from the fair market value of restricted stock at vesting versus the cumulative compensation cost of such stock is recorded as a component of income tax expense and was ($1.2) million, $0.1 million and $0.1 million, respectively.

The Company issues shares of restricted stock to key team members and non-employee directors. Restricted stock granted to employees vests in equal installments over three years from the date of grant. Restricted stock granted to non-employee directors vests one year from the date of grant.

The Company also issues performance-based restricted stock units (“PSUs”) to key team members that cliff vest at the end of a three-year period based upon the Company’s achievement of pre-established goals. The number of units earned and vested is subject to scaling based on a pre-established performance matrix.

Prior to fiscal 2021, the Company issued cash-settled restricted stock units (“CSUs”) to certain team members. In the fourth quarter of fiscal 2021, all outstanding CSUs were converted to time-based restricted stock, with vesting criteria based on the original vesting criteria for the CSUs. This conversion resulted in the reclassification of a $3.4 million liability from accrued compensation to equity.

The following table summarizes activity related to nonvested restricted stock and PSUs during fiscal 2021:


	Time-Based Restricted Stock			Performance-Based Restricted Stock Units
		Weighted Average			Weighted Average
	Nonvested	Grant Date		Nonvested	Grant Date
	Shares	Fair Value		Units	Fair Value
Outstanding as of January 30, 2021	175,077	$	21.02	130,969	$	16.98
Granted	50,707		89.35	21,380		84.46
Conversion of cash-settled units	96,310		82.19	—		—
Vested	(86,437)		21.72	(26,887)		20.25
Forfeited	(9,166)		24.90	(10,657)		23.72
Outstanding as of January 29, 2022	226,491	$	61.91	114,805	$	28.15

At January 29, 2022, there was $8.4 million of unrecognized compensation expense related to restricted stock. Based on current probable performance, there was $3.9 million of unrecognized compensation expense related to PSUs.

Commitments and Contingencies

12 Months Ended

Jan. 29, 2022

Commitments and Contingencies

Commitments and Contingencies

7. Commitments and Contingencies

The Company from time to time is involved in various legal proceedings incidental to the conduct of its business, including claims by customers, employees or former employees. Once it becomes probable that the Company will incur costs in connection with a legal proceeding and such costs can be reasonably estimated, it establishes appropriate reserves. 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.

Leases

12 Months Ended

Jan. 29, 2022

Leases

Leases

8. 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 consolidated balance sheets. The lease liability is measured at the present value of future lease payments as of the lease commencement date.

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


	Fiscal Year
	2021		2020
Operating lease cost	$	52,737	$	50,446
Variable lease cost		10,938		8,159
Short term lease cost		1,091		1,459
Total lease cost	$	64,766	$	60,064

In response to the impact of the COVID-19 pandemic on the Company’s operations in fiscal 2020, the Company suspended certain lease payments 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 negotiated contractual rent concessions on certain 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 FASB in April 2020. As a result of this election, the Company recognized rent abatement credits of approximately $0.7 million and

$1.0 million in fiscal 2021 and 2020, respectively. The balance of accrued lease liabilities related to these suspended payments was $0.4 million at January 29, 2022.

Future minimum lease payments as of January 29, 2022 are as follows (in thousands):


Fiscal Year	Lease Costs
2022	$	53,317
2023		50,918
2024		42,114
2025		31,622
2026		21,246
Thereafter		34,818
Total future minimum lease payments		234,035
Less: imputed interest		(17,928)	(1)
Total present value of lease liabilities	$	216,107	(2)

(1)

Calculated using the discount rate for each lease.

(2)

Includes short-term and long-term portions of operating leases.

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

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


	Fiscal Year
	2021		2020
Cash paid for operating leases	$	56,932	$	47,075
Right of use assets obtained in exchange for new operating lease liabilities	$	75,359	$	60,144

Weighted average remaining lease term (years) - operating leases		5.32		5.12
Weighted average discount rate - operating leases		2.86%		3.11%

Subsequent Events

12 Months Ended

Jan. 29, 2022

Subsequent Events

Subsequent Events

9. Subsequent Events

On March 14, 2022, we entered into an agreement to consummate a sale and leaseback transaction of our distribution center in Darlington, South Carolina, and at our discretion, our distribution center in Roland, Oklahoma. The sale of the Darlington property is expected to provide net proceeds (after tax and transaction-related costs) of approximately $37 million. The sale of the Roland property, if elected by the Company, is expected to provide net proceeds of approximately $32 million. The sale of the Roland property is subject to due diligence and other customary closing conditions.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Jan. 29, 2022

Summary of Significant Accounting Policies

Principles of Consolidation

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

Fiscal Year

Use of Estimates

Cash and Cash Equivalents/Concentration of Credit Risk

Inventory

Property and Equipment, net

Impairment of Long-Lived Assets

Insurance Liabilities

Stock-Based Compensation

Revenue Recognition

Sales Returns

Sales Returns

Disaggregation of Revenue

Disaggregation of Revenue


	Fiscal Year
Citis	2021		2020		2019
Ladies	26	%	26	%	26	%
Kids	22	%	23	%	23	%
Mens	18	%	18	%	16	%
Accessories & Beauty	18	%	16	%	17	%
Home & Lifestyle	9	%	9	%	7	%
Footwear	7	%	8	%	11	%

Cost of Sales

Earnings per Share


	Fiscal Year
	2021	2020	2019
Weighted average number of common shares outstanding	8,911,810	10,282,718	11,673,887
Incremental shares from assumed vesting of nonvested restricted stock	101,122	42,521	25,113
Average number of common shares and common stock equivalents outstanding	9,012,932	10,325,239	11,699,000

Advertising

The Company expenses advertising as incurred. Advertising expense for fiscal 2021, 2020 and 2019 was $1.2 million, $1.6 million and $1.8 million, respectively.

Operating Leases

Income Taxes

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.

Business Operating Segment

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jan. 29, 2022

Summary of Significant Accounting Policies

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


	Fiscal Year
Citis	2021		2020		2019
Ladies	26	%	26	%	26	%
Kids	22	%	23	%	23	%
Mens	18	%	18	%	16	%
Accessories & Beauty	18	%	16	%	17	%
Home & Lifestyle	9	%	9	%	7	%
Footwear	7	%	8	%	11	%

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


	Fiscal Year
	2021	2020	2019
Weighted average number of common shares outstanding	8,911,810	10,282,718	11,673,887
Incremental shares from assumed vesting of nonvested restricted stock	101,122	42,521	25,113
Average number of common shares and common stock equivalents outstanding	9,012,932	10,325,239	11,699,000

Property and Equipment, net (Tables)

12 Months Ended

Jan. 29, 2022

Property and Equipment, net

Schedule of the components of property and equipment

Property and equipment, net, consists of the following (in thousands):


	January 29,		January 30,
	2022		2021
Land	$	479	$	479
Buildings		32,378		31,642
Leasehold improvements		117,604		108,818
Furniture, fixtures and equipment		156,215		148,332
Computer equipment		45,804		42,414
Construction in progress		6,247		10,909
		358,727		342,594
Accumulated depreciation		(283,445)		(279,080)
	$	75,282	$	63,514

Income Taxes (Tables)

12 Months Ended

Jan. 29, 2022

Income Taxes

Schedule of income tax (benefit) expense

Income tax expense consists of the following (in thousands):


	Fiscal Year
	2021		2020		2019
Current:
Federal	$	(11,326)	$	(5,538)	$	(2,650)
State		(2,473)		(1,405)		(945)
Total current		(13,799)		(6,943)		(3,595)
Deferred:
Federal		(2,629)		(588)		104
State		(574)		114		26
Total deferred		(3,203)		(474)		130
Total income tax expense	$	(17,002)	$	(7,417)	$	(3,465)

Schedule of the reconciliation of income tax (benefit) expense computed using the federal statutory rate to the reported income tax (benefit) expense

Income tax expense computed using the federal statutory rate is reconciled to the reported income tax expense as follows (in thousands):


	Fiscal Year
	2021		2020		2019
Statutory rate applied to income before income taxes	$	(16,641)	$	(6,593)	$	(4,193)
State income taxes, net of federal benefit		(2,936)		(1,777)		(791)
State tax credits		152		168		308
State tax credits - valuation allowance (net of federal benefit)		158		—		(99)
Tax exempt interest		—		—		34
General business credits		1,433		878		1,456
Nondeductible compensation		(455)		—		—
Excess (deficit) tax benefits from stock-based compensation		1,226		(58)		(83)
Other		61		(35)		(97)
Income tax expense	$	(17,002)	$	(7,417)	$	(3,465)

Schedule of the components of deferred tax assets and deferred tax liabilities

Deferred tax assets and deferred tax liabilities consist of the following (in thousands):


	January 29,		January 30,
	2022		2021
Deferred tax assets:
Inventory capitalization	$	1,910	$	1,628
Vacation liability		781		754
Operating lease liabilities		55,088		49,763
State tax credits		3,033		3,033
Stock compensation		2,233		1,598
Deferral of FICA tax		—		416
Legal expense reserve		—		128
Insurance liabilities		778		646
Other		620		532
Subtotal deferred tax assets		64,443		58,498
Less: State tax credits valuation allowance - net		(1,556)		(1,714)
Total deferred tax assets		62,887		56,784

Deferred tax liabilities:
Right of use asset		(53,342)		(47,672)
Book and tax depreciation differences		(5,574)		(2,040)
Prepaid expenses		(979)		(877)
Total deferred tax liabilities		(59,895)		(50,589)
Net deferred tax asset	$	2,992	$	6,195

Stockholders' Equity (Tables)

12 Months Ended

Jan. 29, 2022

Stockholders' Equity

Schedule of activity related to stock repurchases


	Fiscal Year
	2021		2020		2019
Total number of shares purchased		1,369		1,031		1,404
Average price paid per share (including commissions)	$	84.23	$	31.87	$	20.26
Total investment	$	115,285	$	32,861	$	28,445

Schedule of activity related to nonvested restricted stock grants


	Time-Based Restricted Stock			Performance-Based Restricted Stock Units
		Weighted Average			Weighted Average
	Nonvested	Grant Date		Nonvested	Grant Date
	Shares	Fair Value		Units	Fair Value
Outstanding as of January 30, 2021	175,077	$	21.02	130,969	$	16.98
Granted	50,707		89.35	21,380		84.46
Conversion of cash-settled units	96,310		82.19	—		—
Vested	(86,437)		21.72	(26,887)		20.25
Forfeited	(9,166)		24.90	(10,657)		23.72
Outstanding as of January 29, 2022	226,491	$	61.91	114,805	$	28.15

Leases (Tables)

12 Months Ended

Jan. 29, 2022

Leases

Schedule of lease expense


	Fiscal Year
	2021		2020
Operating lease cost	$	52,737	$	50,446
Variable lease cost		10,938		8,159
Short term lease cost		1,091		1,459
Total lease cost	$	64,766	$	60,064

Schedule of future minimum rent payments under operating leases


Fiscal Year	Lease Costs
2022	$	53,317
2023		50,918
2024		42,114
2025		31,622
2026		21,246
Thereafter		34,818
Total future minimum lease payments		234,035
Less: imputed interest		(17,928)	(1)
Total present value of lease liabilities	$	216,107	(2)

(1)

Calculated using the discount rate for each lease.

(2)

Includes short-term and long-term portions of operating leases.

Schedule of supplemental cash flow and other information

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


	Fiscal Year
	2021		2020
Cash paid for operating leases	$	56,932	$	47,075
Right of use assets obtained in exchange for new operating lease liabilities	$	75,359	$	60,144

Weighted average remaining lease term (years) - operating leases		5.32		5.12
Weighted average discount rate - operating leases		2.86%		3.11%

Organization and Business (Details)	Jan. 29, 2022 state store
Organization and Business
Number of stores operated \| store	609
Number of states in which company operates \| state	33

Summary of Significant Accounting Policies - PPE and Insurance Liabilities (Details) - USD ($)	12 Months Ended
	Jan. 29, 2022	Jan. 30, 2021	Feb. 01, 2020
Fiscal Year
Length of fiscal year	364 days	364 days	364 days
Inventory
Allowance for inventory shrinkage	$ 4,400,000	$ 5,200,000
Impairment of long lived assets
Non-cash impairment expense related to leasehold improvements and fixtures and equipment	0	$ 300,000	$ 500,000
Insurance Liabilities
Self-insured retention or deductible amount per claim for workers' compensation	250,000
Self-insured retention or deductible amount per claim for employee medical	$ 100,000
Furniture and Fixtures \| Minimum
Property and Equipment, net
Estimated useful lives	3 years
Furniture and Fixtures \| Maximum
Property and Equipment, net
Estimated useful lives	5 years
Leasehold Improvements
Property and Equipment, net
Estimated useful lives	10 years
Software
Property and Equipment, net
Estimated useful lives	7 years
Building and Building Improvements \| Minimum
Property and Equipment, net
Estimated useful lives	15 years
Building and Building Improvements \| Maximum
Property and Equipment, net
Estimated useful lives	20 years

Summary of Significant Accounting Policies - Returns and Disaggregation of Revenue (Details) - USD ($) $ in Millions	12 Months Ended
	Jan. 29, 2022	Jan. 30, 2021	Feb. 01, 2020
Revenue, initial application period, cumulative effect transition
Period of time company allows customers to return merchandise	30 days
Estimated refund liability	$ 0.2	$ 0.3
Carrying value of return asset		0.1
Distribution center costs	$ 24.9	$ 20.3	$ 20.8
Ladies
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	26.00%	26.00%	26.00%
Kids
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	22.00%	23.00%	23.00%
Mens
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	18.00%	18.00%	16.00%
Accessories & Beauty
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	18.00%	16.00%	17.00%
Home & Lifestyle
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	9.00%	9.00%	7.00%
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%	11.00%

Summary of Significant Accounting Policies - EPS, Advertising and Leases (Details) - USD ($) $ in Millions		12 Months Ended
	Feb. 02, 2019	Jan. 29, 2022	Jan. 30, 2021	Feb. 01, 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		8,911,810	10,282,718	11,673,887
Incremental shares from assumed vesting of nonvested restricted stock		101,122	42,521	25,113
Average number of common shares and common stock equivalents outstanding		9,012,932	10,325,239	11,699,000
Advertising
Advertising expense		$ 1.2	$ 1.6	$ 1.8
Impairment of Assets
Lease impairment	$ 2.1
Restricted Stock
Reconciliation of average number of common shares outstanding used to calculate basic and diluted earnings per share
Securities excluded from calculation of diluted earnings per share (in shares)		47,000	131,000	128,000

Summary of Significant Accounting Policies - Segments and Concentration Risk (Details)	12 Months Ended
	Jan. 29, 2022 segment
Summary of Significant Accounting Policies
Number of operating segments	1

Property and Equipment, net (Details) - USD ($) $ in Thousands	Jan. 29, 2022	Jan. 30, 2021
Property and Equipment, net
Property and equipment, gross	$ 358,727	$ 342,594
Accumulated depreciation	(283,445)	(279,080)
Property and Equipment, net	75,282	63,514
Land
Property and Equipment, net
Property and equipment, gross	479	479
Building
Property and Equipment, net
Property and equipment, gross	32,378	31,642
Leasehold Improvements
Property and Equipment, net
Property and equipment, gross	117,604	108,818
Furniture and Fixtures
Property and Equipment, net
Property and equipment, gross	156,215	148,332
Computer Equipment
Property and Equipment, net
Property and equipment, gross	45,804	42,414
Construction in Progress
Property and Equipment, net
Property and equipment, gross	$ 6,247	$ 10,909

Revolving Credit Facility (Details) - USD ($) $ in Thousands				12 Months Ended
	Apr. 15, 2021	Mar. 20, 2020	Oct. 27, 2011	Jan. 30, 2021	Jan. 29, 2022
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	$ 75,000		$ 50,000
Borrowings under revolving credit facility		$ 43,700
Borrowing capacity, accordion feature	25,000
Maximum borrowing capacity including accordion expansion	$ 100,000
Unused commitment fee (as a percent)	0.20%
Debt outstanding					$ 0
Line of Credit \| Minimum
Revolving Line of Credit
Accrued interest (as a percent)		1.625%
Line of Credit \| Maximum
Revolving Line of Credit
Accrued interest (as a percent)		3.50%
Line of Credit \| Eurodollar Rate plus 1%
Revolving Line of Credit
Margin added to variable rate (as a percent)	1.00%
Line of Credit \| Federal Fund Rate
Revolving Line of Credit
Margin added to variable rate (as a percent)	0.50%
Letter of Credit
Revolving Line of Credit
Debt outstanding					$ 600
First interest rate \| Line of Credit \| Eurodollar Rate
Revolving Line of Credit
Margin added to variable rate (as a percent)	1.25%
First interest rate \| Line of Credit \| Eurodollar Rate plus 1%
Revolving Line of Credit
Margin added to variable rate (as a percent)	0.25%
Second interest rate \| Line of Credit \| Eurodollar Rate
Revolving Line of Credit
Margin added to variable rate (as a percent)	1.50%
Second interest rate \| Line of Credit \| Eurodollar Rate plus 1%
Revolving Line of Credit
Margin added to variable rate (as a percent)	0.50%
Third interest rate \| Line of Credit \| Eurodollar Rate
Revolving Line of Credit
Margin added to variable rate (as a percent)	1.75%
Third interest rate \| Line of Credit \| Eurodollar Rate plus 1%
Revolving Line of Credit
Margin added to variable rate (as a percent)	0.75%

Income Taxes - Income Tax (Benefit) Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 29, 2022	Jan. 30, 2021	Feb. 01, 2020
Current:
Federal	$ 11,326	$ 5,538	$ 2,650
State	2,473	1,405	945
Total current	13,799	6,943	3,595
Deferred:
Federal	(2,629)	(588)	104
State	(574)	114	26
Total deferred	(3,203)	(474)	130
Income tax expense	$ (17,002)	$ (7,417)	$ (3,465)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes - Reconciliation of Federal Statutory Tax Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 29, 2022	Jan. 30, 2021	Feb. 01, 2020
Reconciliation of income tax (benefit) expense computed using the federal statutory rate to the reported income tax (benefit) expense
Statutory rate applied to income before income taxes	$ (16,641)	$ (6,593)	$ (4,193)
State income taxes, net of federal benefit	(2,936)	(1,777)	(791)
State tax credits	152	168	308
State tax credits - valuation allowance (net of federal benefit)	158		(99)
Tax exempt interest			34
General business credits	1,433	878	1,456
Nondeductible compensation	(455)
Excess (deficit) tax benefits from stock-based compensation	1,226	(58)	(83)
Other	61	(35)	(97)
Income tax expense	$ (17,002)	$ (7,417)	$ (3,465)

Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Jan. 29, 2022	Jan. 30, 2021
Deferred tax assets:
Inventory capitalization	$ 1,910	$ 1,628
Vacation liability	781	754
Operating lease liabilities	55,088	49,763
State tax credits	3,033	3,033
Stock compensation	2,233	1,598
Deferral of FICA tax		416
Legal expense reserve		128
Insurance liabilities	778	646
Other	620	532
Subtotal deferred tax assets	64,443	58,498
Less: State tax credits valuation allowance - net	(1,556)	(1,714)
Total deferred tax assets	62,887	56,784
Deferred tax liabilities:
Right of use asset	(53,342)	(47,672)
Book and tax depreciation differences	(5,574)	(2,040)
Prepaid expenses	(979)	(877)
Total deferred tax liabilities	(59,895)	(50,589)
Net deferred tax asset	$ 2,992	$ 6,195

Income Taxes - Income Tax (Benefit) Expense Components (Details) $ in Thousands	12 Months Ended
	Jan. 29, 2022 USD ($) item	Jan. 30, 2021 USD ($)	Feb. 01, 2020 USD ($)
Income Taxes
Benefits not recognized due to uncertainty	$ 0
Number of states in which ability to utilize tax credits is no longer more likely than not \| item	1
Valuation allowance, net	$ 1,556	$ 1,714
Credits carry back period	1 year
Credits carry forward period	20 years
Income tax benefit related to federal and state tax credits	$ 1,600	$ 1,700	$ 1,700

Stockholders' Equity - Stock Repurchases (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jan. 29, 2022	Jan. 30, 2021	Feb. 01, 2020	Mar. 31, 2022
Stock Repurchases
Total number of shares purchased	1,369	1,031	1,404
Average price paid per share (including commissions)	$ 84.23	$ 31.87	$ 20.26
Total investment	$ 115,285	$ 32,861	$ 28,445
Remaining value of shares available for repurchase	$ 30,000
Stock purchase plan authorized amount				$ 30,000

Stockholders' Equity - Time-Based Nonvested Restricted Stock Granted to Employees (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 29, 2022	Jan. 30, 2021	Feb. 01, 2020
Stockholders' Equity
Shares reserved for future grants	678,356
Income tax expense (benefits)	$ 17,002	$ 7,417	$ 3,465
Conversion of nonvested cash-settled units to nonvested shares under incentive plan	3,415
Selling and general and administrative expenses
Stockholders' Equity
Stock-based compensation expense	4,800	2,900	2,100
Income tax (benefit) expense
Stockholders' Equity
Income tax expense (benefits)	(1,200)	$ 100	$ 100
Restricted Stock
Stockholders' Equity
Unrecognized compensation expense	$ 8,400
Restricted Stock \| Employee
Stockholders' Equity
Vesting period	3 years
Restricted Stock \| Director
Stockholders' Equity
Vesting period	1 year
Performance-Based RSU
Stockholders' Equity
Vesting period	3 years
Unrecognized compensation expense	$ 3,900

Stockholders Equity - Activity for Time-Based Nonvested Restricted Stock and Performance-Based RSU Grants (Details)	12 Months Ended
	Jan. 29, 2022 $ / shares shares
Restricted Stock
Nonvested Restricted Shares
Outstanding at the beginning of the period (in shares) \| shares	175,077
Granted (in shares) \| shares	50,707
Conversion of cash-settled units (in shares) \| shares	96,310
Vested (in shares) \| shares	(86,437)
Forfeited (in shares) \| shares	(9,166)
Outstanding at the end of the period (in shares) \| shares	226,491
Weighted Average Grant Date Fair Value
Outstanding at the beginning of the period (in dollars per share) \| $ / shares	$ 21.02
Granted (in dollars per share) \| $ / shares	89.35
Conversion of cash-settled units (in dollars per share) \| $ / shares	82.19
Vested (in dollars per share) \| $ / shares	21.72
Forfeited (in dollars per share) \| $ / shares	24.90
Outstanding at the end of the period (in dollars per share) \| $ / shares	$ 61.91
Performance-Based RSU
Nonvested Restricted Shares
Outstanding at the beginning of the period (in shares) \| shares	130,969
Granted (in shares) \| shares	21,380
Vested (in shares) \| shares	(26,887)
Forfeited (in shares) \| shares	(10,657)
Outstanding at the end of the period (in shares) \| shares	114,805
Weighted Average Grant Date Fair Value
Outstanding at the beginning of the period (in dollars per share) \| $ / shares	$ 16.98
Granted (in dollars per share) \| $ / shares	84.46
Vested (in dollars per share) \| $ / shares	20.25
Forfeited (in dollars per share) \| $ / shares	23.72
Outstanding at the end of the period (in dollars per share) \| $ / shares	$ 28.15

Leases - Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
Leases - Lease Cost (Details) - USD ($) $ in Thousands	Jan. 29, 2022	Jan. 30, 2021
Leases
Lease term	5 years
Operating lease cost	$ 52,737	$ 50,446
Variable lease cost	10,938	8,159
Short term lease cost	1,091	1,459
Total lease cost	$ 64,766	$ 60,064
Minimum
Leases
Extension term	1 year
Maximum
Leases
Extension term	5 years

Leases - Future Minimum Lease Payments (Details) $ in Thousands	Jan. 29, 2022 USD ($)
Future minimum lease payments under operating leases
2022	$ 53,317
2023	50,918
2024	42,114
2025	31,622
2026	21,246
Thereafter	34,818
Total future minimum lease payments	234,035
Less: imputed interest	(17,928)
Total present value of lease liabilities	$ 216,107

Leases - Cash flow and other information (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 29, 2022	Jan. 30, 2021
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	$ 700	$ 1,000
Accrued lease liabilities for rent abatements due to the number of leases renegotiated in response to the negative financial impacts of COVID-19	400
Cash paid for operating leases	56,932	47,075
Right of use assets obtained in exchange for new operating lease liabilities	$ 75,359	$ 60,144
Weighted average remaining lease term - operating leases	5 years 3 months 25 days	5 years 1 month 13 days
Weighted average discount rate - operating leases (as a percent)	2.86%	3.11%

Subsequent Events (Details) - Subsequent Event $ in Millions	Mar. 14, 2022 USD ($)
Distribution Center Darlington, South Carolina
Subsequent Events
Proceeds from properties sold	$ 37
Distribution Center Roland, Oklahoma
Subsequent Events
Proceeds from properties sold	$ 32