0001558370-25-004897 | 10-K | XBRL Viewer

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Feb. 01, 2025

Summary of Significant Accounting Policies

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 February 1, 2025, February 3, 2024 and January 28, 2023 are referred to as fiscal 2024, fiscal 2023 and fiscal 2022, respectively, in the accompanying consolidated financial statements. Fiscal years 2024 and 2022 have a 52-week accounting period, and fiscal year 2023 is comprised of 53 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 shrink based on the most recent physical inventory counts and other assumptions for shrink activity. The allowance for inventory shrink was $5.2 million as of February 1, 2025 and $3.9 million as of February 3, 2024.

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 group 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 non-cash impairment expense in fiscal 2024 of $2.5 million consisting of $1.2 million for leasehold improvements and fixtures and equipment at underperforming stores, and $1.3 for right of use assets. There was non-cash impairment expense in fiscal year 2023 of $1.0 million consisting of $0.9 million for leasehold improvements and fixtures and equipment at an underperforming store, and $0.1 million for a right of use asset.

Insurance Liabilities

The Company is largely self-insured for workers’ compensation costs, general liability claims. The Company’s self-insured retention or deductible, as applicable, for each claim involving workers’ compensation and general liability 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 apparel, accessories and home goods 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

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 as of both February 1, 2025 and February 3, 2024. 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 February 1, 2025 and February 3, 2024.

Disaggregation of Revenue

Disaggregation of Revenue

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


	Fiscal Year
Divisions	2024		2023		2022
Womens	27	%	27	%	26	%
Kids	23	%	23	%	23	%
Accessories & Beauty	17	%	17	%	18	%
Mens	17	%	17	%	17	%
Home & Lifestyle	10	%	9	%	8	%
Footwear	6	%	7	%	8	%

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, freight from the distribution centers to the stores and freight from vendors to 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 2024, 2023 and 2022 were $32.1 million, $31.0 million and $26.3 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
	2024	2023	2022
Weighted average number of common shares outstanding (basic)	8,314,825	8,221,450	8,216,448
Incremental shares from assumed vesting of nonvested restricted stock	—	—	—
Average number of common shares and common stock equivalents outstanding	8,314,825	8,221,450	8,216,448

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 2024, 2023 and 2022, respectively, there were 248,000, 273,000 and 218,000 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 2024, 2023 and 2022 was $2.3 million, $1.6 million and $0.8 million, respectively.

Operating Leases

The Company leases all of its retail store locations, its distribution centers 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.

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 realization of the deferred tax asset is not considered more likely than not, then a valuation allowance is recorded to reduce the deferred tax asset to its net realizable value.

Business Operating Segment

The Company is an off-price 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.

New Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09, “Improvement to Income Tax Disclosures (Topic 740)”, which requires additional disclosures for income tax rate reconciliations, income taxes paid, and certain other tax disclosures. ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in ASU 2023-09 address investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. Adoption is required for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures.

In November 2024, the FASB issued ASU 2024-03, “Expense Disaggregation Disclosures (Topic 220): Disaggregation of Income Statement Expenses” (“ASU 2024-03”), which requires public entities to disclose additional information that disaggregates certain expense captions into specified categories in the Notes to the consolidated financial statements. The new standard is effective for fiscal years beginning after December 15, 2026, and interim periods after December 15, 2027, with early adoption permitted. The disclosure updates are required to be applied prospectively with the option for retrospective application. The Company is currently evaluating the impact the amended guidance will have on its disclosures.

Stockholders' Equity - Activity for Time-Based Nonvested Restricted Stock and Performance-Based RSU Grants (Details) - $ / shares		12 Months Ended
	Nov. 18, 2024	Feb. 01, 2025
Time-Based Restricted Stock
Nonvested Restricted Shares
Outstanding at the beginning of the period (in shares)		310,882
Granted (in shares)		230,852
Vested (in shares)		(156,201)
Forfeited (in shares)		(51,450)
Outstanding at the end of the period (in shares)		334,083
Weighted Average Grant Date Fair Value
Outstanding at the beginning of the period (in dollars per share)		$ 21.83
Granted (in dollars per share)		21.08
Vested (in dollars per share)		24.79
Forfeited (in dollars per share)		20.44
Outstanding at the end of the period (in dollars per share)		$ 20.15
Performance-Based Restricted Stock Units
Nonvested Restricted Shares
Outstanding at the beginning of the period (in shares)		99,467
Granted (in shares)		82,193
Forfeited (in shares)		(91,679)
Outstanding at the end of the period (in shares)		89,981
Weighted Average Grant Date Fair Value
Outstanding at the beginning of the period (in dollars per share)		$ 16.8
Granted (in dollars per share)		23.52
Forfeited (in dollars per share)		18.84
Outstanding at the end of the period (in dollars per share)		$ 20.06
Performance-Based Restricted Stock
Nonvested Restricted Shares
Granted (in shares)		321,502
Outstanding at the end of the period (in shares)		321,502
Weighted Average Grant Date Fair Value
Granted (in dollars per share)	$ 10.45	$ 10.45
Outstanding at the end of the period (in dollars per share)		$ 10.45

Income Taxes

12 Months Ended

Feb. 01, 2025

Income Taxes

Income Taxes

5. Income Taxes

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


	Fiscal Year
	2024		2023		2022
Current:
Federal	$	(275)	$	2,025	$	(12,616)
State		(420)		(329)		(4,426)
Total current		(695)		1,696		(17,042)
Deferred:
Federal		(2,266)		2,635		(1,031)
State		(2,875)		(424)		932
Total deferred		(5,141)		2,211		(99)
Total income tax (expense) benefit	$	(5,836)	$	3,907	$	(17,141)

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


	Fiscal Year
	2024		2023		2022
Statutory rate applied to income before income taxes	$	7,840	$	3,337	$	(15,967)
State income taxes, net of federal benefit		1,151		240		(2,738)
State tax credits		(1,001)		(167)		(268)
State tax credits - valuation allowance (net of federal benefit)		—		(774)		393
General business credits		1,518		1,840		1,871
Nondeductible compensation		(46)		—		(44)
Excess (deficit) tax benefits from stock-based compensation		(96)		(519)		(507)
Valuation Allowance		(14,582)		—		—
Other		(620)		(50)		119
Income tax (expense) benefit	$	(5,836)	$	3,907	$	(17,141)

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


	February 1,		February 3,
	2025		2024
Deferred tax assets:
Inventory capitalization	$	1,930	$	2,422
Vacation liability		395		489
Operating lease liabilities		55,247		59,556
State tax credits		1,597		2,599
Federal tax credits		1,518		—
Stock compensation		545		1,059
Insurance liabilities		366		855
Research and development		2,227		1,399
Net operating loss and charitable contribution carryforwards		10,097		2,434
Other		585		507
Subtotal deferred tax assets		74,507		71,320
Less: Valuation allowance - net		(16,519)		(1,937)
Total deferred tax assets		57,988		69,383

Deferred tax liabilities:
Right of use asset		(52,935)		(57,690)
Book and tax depreciation differences		(4,783)		(6,115)
Prepaid expenses		(412)		(473)
Total deferred tax liabilities		(58,130)		(64,278)
Net deferred tax (liability) asset	$	(142)	$	5,105

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 2020. 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 February 1, 2025, there were no material 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.

At February 1, 2025, the Company had income tax net operating loss (“NOL”) carryforwards for federal purposes of $39.6 million (gross) and for state purposes of $1.7 million (tax effected). The federal tax NOL carryforwards have an indefinite carryforward, but are limited to offsetting 80% of taxable income in future years. The majority of state tax NOL carryforwards either follow federal indefinite carryforward or begin to expire in 2038, with one jurisdiction expiring in 2028.

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 sufficient negative evidence exists to require a valuation allowance. We intend to maintain a valuation allowance until sufficient positive evidence exists to support its reversal, resulting in no deferred tax asset balance being recognized. At February 1, 2025, the valuation allowance established against the entire net deferred tax asset totaled $16.5 million.

The effective income tax rate for fiscal 2024, 2023 and 2022 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 $0.0 million, $2.2 million and $1.6 million related to such credits in each of fiscal 2024, 2023 and 2022, respectively. The credits generated for fiscal year 2024 were recorded with a full valuation allowance.

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 231
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-231

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477891/740-270-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480990/946-20-50-13

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/740/tableOfContent

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-14

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-21

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-17

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482603/740-30-50-2

+ Details

Summary of Significant Accounting Policies - PPE and Insurance Liabilities (Details) - USD ($)	12 Months Ended
	Feb. 01, 2025	Feb. 03, 2024	Jan. 28, 2023
Fiscal Year
Length of fiscal year	364 days	371 days	364 days
Inventory, Gross
Allowance for inventory shrinkage	$ 5,200,000	$ 3,900,000
Impairment of long lived assets
Non-cash impairment expense	2,500,000	1,000,000
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
Computer equipment \| Minimum
Property, Plant and Equipment
Estimated useful lives	3 years
Computer equipment \| Maximum
Property, Plant and Equipment
Estimated useful lives	5 years
Furniture, fixtures and equipment \| Minimum
Property, Plant and Equipment
Estimated useful lives	3 years
Furniture, fixtures and equipment \| Maximum
Property, Plant and Equipment
Estimated useful lives	5 years
Leasehold improvements
Property, Plant and Equipment
Estimated useful lives	10 years
Software
Property, Plant and Equipment
Estimated useful lives	7 years
Building and Building Improvements \| Minimum
Property, Plant and Equipment
Estimated useful lives	15 years
Building and Building Improvements \| Maximum
Property, Plant and Equipment
Estimated useful lives	20 years
Leasehold improvements and fixtures and equipment at underperforming stores
Impairment of long lived assets
Non-cash impairment expense	$ 1,200,000	900,000
Right of use asset
Impairment of long lived assets
Non-cash impairment expense	$ 1,300,000	$ 100,000

Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Feb. 01, 2025	Feb. 03, 2024
Deferred tax assets:
Inventory capitalization	$ 1,930	$ 2,422
Vacation liability	395	489
Operating lease liabilities	55,247	59,556
State tax credits	1,597	2,599
Federal tax credits	1,518
Stock compensation	545	1,059
Insurance liabilities	366	855
Research and development	2,227	1,399
Net operating loss and charitable contribution carryforwards	10,097	2,434
Other	585	507
Subtotal deferred tax assets	74,507	71,320
Less: Valuation allowance - net	(16,519)	(1,937)
Total deferred tax assets	57,988	69,383
Deferred tax liabilities:
Right of use asset	(52,935)	(57,690)
Book and tax depreciation differences	(4,783)	(6,115)
Prepaid expenses	(412)	(473)
Total deferred tax liabilities	(58,130)	(64,278)
Net deferred tax asset		$ 5,105
Net deferred tax (liability)	$ (142)

Property and Equipment, net (Details) - USD ($) $ in Thousands	Feb. 01, 2025	Feb. 03, 2024
Property and Equipment, net
Property and equipment, gross	$ 348,111	$ 332,677
Accumulated depreciation	(297,396)	(276,446)
Property and Equipment, net	50,715	56,231
Buildings
Property and Equipment, net
Property and equipment, gross	4,849	4,786
Leasehold improvements
Property and Equipment, net
Property and equipment, gross	136,491	131,143
Furniture, fixtures and equipment
Property and Equipment, net
Property and equipment, gross	144,321	138,980
Computer equipment
Property and Equipment, net
Property and equipment, gross	59,993	56,666
Construction in progress
Property and Equipment, net
Property and equipment, gross	$ 2,457	$ 1,102

Segment Reporting (Tables)

12 Months Ended

Feb. 01, 2025

Segment Reporting

Schedule of one reportable segment profit or loss, including significant segment expenses, and includes the reconciliation to consolidated net (loss) income



	Fiscal Year
		2024		2023		2022
Net sales	$	753,079	$	747,941	$	795,011
Cost of sales (exclusive of depreciation shown separately below)
Merchandising and other		(430,300)		(418,103)		(441,242)
Freight in and out		(40,736)		(44,721)		(42,780)
Selling, general, and administrative expenses
Store expenses - payroll and related expenses		(91,558)		(90,405)		(90,295)
Store expenses - rent		(66,660)		(67,110)		(66,431)
Corporate expenses - payroll and related expenses		(29,614)		(26,189)		(26,859)
Distribution center expenses - payroll and related expenses		(16,686)		(17,412)		(15,549)
Other segment expenses ⁽¹⁾		(95,655)		(83,414)		(80,043)
Depreciation		(18,822)		(18,990)		(20,595)
Asset impairment		(2,536)		(1,051)		—
Gain on sale leaseback		—		—		64,088
Interest income		2,473		3,874		1,034
Interest expense		(319)		(306)		(306)
Income tax (provision) benefit		(5,836)		3,907		(17,141)
Net (loss) income	$	(43,170)	$	(11,979)	$	58,892

Leases

12 Months Ended

Feb. 01, 2025

Leases

Leases

8. Leases

The Company leases its retail store locations, its distribution centers and certain office space and equipment. Leases for store locations are typically for a term of five years with options to extend for one or more five-year periods. In fiscal 2022, the Company completed sale-leasebacks of its distribution centers. The Darlington, South Carolina distribution center lease has a 20-year lease term with the option to extend for six additional periods of five years each. The Roland, Oklahoma distribution center has a 15-year lease term with the option to extend for six additional periods of five years each. The sale-leaseback transactions resulted in a gain of approximately $64.1 million in the Statement of Operations for the year ended January 28, 2023.

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
	2024		2023		2022
Operating lease cost	$	61,227	$	62,163	$	60,167
Variable lease cost		11,061		11,070		9,911
Short term lease cost		2,241		1,598		1,395
Total lease cost	$	74,529	$	74,831	$	71,473

Future minimum lease payments as of February 1, 2025 are as follows (in thousands):


Fiscal Year	Lease Costs
2025	$	60,651
2026		49,602
2027		38,230
2028		29,989
2029		21,595
Thereafter		89,197
Total future minimum lease payments		289,264
Less: imputed interest		(68,865)	(1)
Total present value of lease liabilities	$	220,399	(2)

(1)

Calculated using the incremental borrowing 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
	February 1, 2025		February 3, 2024		2022
Cash paid for operating leases	$	62,582	$	68,371	$	56,053
Right of use assets obtained in exchange for new operating lease liabilities	$	33,183	$	27,836	$	101,241

Weighted average remaining lease term (years) - operating leases		7.26		7.54		7.83
Weighted average discount rate - operating leases		5.61%		5.04%		4.49%

Organization and Business

12 Months Ended

Feb. 01, 2025

Organization and Business

Organization and Business

1. Organization and Business

Citi Trends, Inc. and its subsidiary (the “Company”) is a leading off-price value retailer of apparel, accessories and home trends primarily for African American families in the United States. As of February 1, 2025, the Company operated 591 stores in urban, suburban and rural markets in 33 states.

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Feb. 01, 2025	Feb. 03, 2024	Jan. 28, 2023
Consolidated Statements of Operations
Net sales	$ 753,079	$ 747,941	$ 795,011
Revenue, Product and Service [Extensible Enumeration]	us-gaap:ProductMember	us-gaap:ProductMember	us-gaap:ProductMember
Cost of sales (exclusive of depreciation shown separately below)	$ (471,036)	$ (462,824)	$ (484,022)
Selling, general and administrative expenses	(300,173)	(284,530)	(279,177)
Depreciation	(18,822)	(18,990)	(20,595)
Asset impairment	(2,536)	(1,051)
Gain on sale-leasebacks			64,088
(Loss) income from operations	(39,488)	(19,454)	75,305
Interest income	2,473	3,874	1,034
Interest expense	(319)	(306)	(306)
(Loss) income before income taxes	(37,334)	(15,886)	76,033
Income tax (expense) benefit	(5,836)	3,907	(17,141)
Net (loss) income	$ (43,170)	$ (11,979)	$ 58,892
Basic net (loss) income per common share	$ (5.19)	$ (1.46)	$ 7.17
Diluted net (loss) income per common share	$ (5.19)	$ (1.46)	$ 7.17
Weighted average number of shares outstanding
Basic	8,314,825	8,221,450	8,216,448
Diluted	8,314,825	8,221,450	8,216,448

Leases - Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
Leases - Lease Cost (Details) - USD ($) $ in Thousands	Feb. 01, 2025	Feb. 03, 2024	Jan. 28, 2023
Leases
Operating lease cost	$ 61,227	$ 62,163	$ 60,167
Variable lease cost	11,061	11,070	9,911
Short term lease cost	2,241	1,598	1,395
Total lease cost	$ 74,529	$ 74,831	$ 71,473

Stockholders' Equity (Tables)

12 Months Ended

Feb. 01, 2025

Schedule of activity related to stock repurchases

Share repurchases are as follows (in thousands, except per share data):


	Fiscal Year
	2024		2023		2022
Total number of shares purchased		145		—		331
Average price paid per share (including commissions)	$	25.99	$	—	$	30.22
Total investment	$	3,777	$	—	$	10,000

Schedule of activity related to nonvested restricted stock grants


	Time-Based Restricted Stock
		Weighted Average
	Nonvested	Grant Date
	Shares	Fair Value
Outstanding as of February 3, 2024	310,882	$	21.83
Granted	230,852		21.08
Vested	(156,201)		24.79
Forfeited	(51,450)		20.44
Outstanding as of February 1, 2025	334,083	$	20.15


	Performance-Based Restricted Stock
		Weighted Average
	Nonvested	Grant Date
	Shares	Fair Value
Outstanding as of February 3, 2024	—	$	—
Granted	321,502		10.45
Vested	—		—
Outstanding as of February 1, 2025	321,502	$	10.45


	Performance-Based Restricted Stock Units
		Weighted Average
	Nonvested	Grant Date
	Units	Fair Value
Outstanding as of February 3, 2024	99,467	$	16.80
Granted	82,193		23.52
Vested	—		—
Forfeited	(91,679)		18.84
Outstanding as of February 1, 2025	89,981	$	20.06

Performance-Based Restricted Stock Units

Schedule of assumptions of estimated fair value of the awards


Stock Price on grant date		$16.33
Risk-free interest rate		4.21%
Expected volatility (annualized)		62.90%
Dividend yield		0%

Leases - Cash flow and other information (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 01, 2025	Feb. 03, 2024	Jan. 28, 2023
Supplemental cash flow and other information related to operating leases
Cash paid for operating leases	$ 62,582	$ 68,371	$ 56,053
Right of use assets obtained in exchange for new operating lease liabilities	$ 33,183	$ 27,836	$ 101,241
Weighted average remaining lease term (years) - operating leases	7 years 3 months 3 days	7 years 6 months 14 days	7 years 9 months 29 days
Weighted average discount rate - operating leases (as a percent)	5.61%	5.04%	4.49%

Commitments and Contingencies (Details) $ in Millions	Feb. 01, 2025 USD ($) lawsuit
Commitments and Contingencies
Number of putative class action lawsuits \| lawsuit	4
Purchase obligations for open merchandise orders	$ 138.0
Accrued expenses
Commitments and Contingencies
Accrual for costs	$ 0.7

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Summary of Significant Accounting Policies - Segments (Details)	12 Months Ended
	Feb. 01, 2025 segment
Summary of Significant Accounting Policies
Number of operating segments	1

Commitments and Contingencies

12 Months Ended

Feb. 01, 2025

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.

In connection with the January 2023 cyber disruption previously disclosed in the Company’s Form 8-K filed on February 23, 2023, four putative class action lawsuits were filed against the Company in the United States District Court for the Southern District of Georgia (the “Court”). These matters, Matousek et al v. Citi Trends, Inc.; Sienna Thomas v. Citi Trends, Inc.; Yeimy Sambrano v. Citi Trends, Inc.; Sabrina Green-Fogg v. Citi Trends, Inc. were filed in the second half of 2023, and consolidated into one case by the Court on November 8, 2023. The plaintiffs allege harm in connection with the January 2023 cyber disruption and assert a variety of claims seeking unspecified monetary damages and other related relief. A consolidated class action complaint was filed on February 15, 2024, adding an additional plaintiff, Shykira Scott. The Company is vigorously defending these lawsuits and filed a motion to dismiss the consolidated class action complaint, as well as a motion to compel individual arbitration and dismiss or stay actions on March 22, 2024. In addition, the Attorneys General of Alabama, Connecticut, Indiana and Texas sent inquiry letters to the Company regarding the January 2023 cyber disruption, which the Company has answered. As of the end of fiscal 2024, the Company had an accrual of $0.7 million for estimated losses in connection with these matters recorded in Accrued expenses. The ultimate loss to the Company for these matters could be materially different from the amount the Company has accrued. The Company cannot predict or estimate the duration or ultimate outcome of these matters. The Company is unable to predict whether it may be subject to other lawsuits, claims or inquiries.

While legal proceedings are subject to uncertainties and the outcome of any such matter is not predictable and it is possible that we could incur losses associated with these proceedings, the Company does not believe, based on the information available to it at the time of this filing, that any legal proceedings pending or threatened against it will have a material adverse effect on its financial condition, results of operations or liquidity.

The Company is also party to purchase obligations for open merchandise orders of $138.0 million that is due within 12 months.

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Paid in Capital	Retained Earnings	Treasury Stock	Total
Balances at Jan. 29, 2022	$ 159	$ 101,037	$ 272,158	$ (257,211)	$ 116,143
Balances (in shares) at Jan. 29, 2022	16,090,365
Balances (in shares) at Jan. 29, 2022				7,473,155
Increase (Decrease) in Stockholders' Equity
Vesting of nonvested shares	$ 2				2
Issuance of nonvested shares (in shares)	140,441
Issuance of common stock under incentive plan, net of shares withheld for taxes (in shares)	15,977
Forfeiture of nonvested shares (in shares)	(42,782)
Stock-based compensation expense		3,635			3,635
Net share settlement of nonvested shares	$ (1)	(2,227)			(2,228)
Net share settlement of nonvested shares (in shares)	(45,507)
Repurchase of common stock				$ (10,000)	(10,000)
Repurchase of common stock (in shares)				330,858
Net income (loss)			58,892		58,892
Balances at Jan. 28, 2023	$ 160	102,445	331,050	$ (267,211)	166,444
Balances (in shares) at Jan. 28, 2023	16,158,494
Balances (in shares) at Jan. 28, 2023				7,804,013
Increase (Decrease) in Stockholders' Equity
Vesting of nonvested shares	$ 0
Issuance of nonvested shares (in shares)	272,426
Forfeiture of nonvested shares (in shares)	(39,321)
Stock-based compensation expense		4,095			4,095
Net share settlement of nonvested shares		(854)			(854)
Net share settlement of nonvested shares (in shares)	(36,885)
Net income (loss)			(11,979)		(11,979)
Balances at Feb. 03, 2024	$ 160	105,686	319,071	$ (267,211)	$ 157,706
Balances (in shares) at Feb. 03, 2024	16,354,714				16,354,714
Balances (in shares) at Feb. 03, 2024				7,804,013	7,804,013
Increase (Decrease) in Stockholders' Equity
Vesting of nonvested shares	$ 2				$ 2
Issuance of nonvested shares (in shares)	230,852
Forfeiture of nonvested shares (in shares)	(51,450)
Stock-based compensation expense		3,302			3,302
Net share settlement of nonvested shares		(887)			(887)
Net share settlement of nonvested shares (in shares)	(37,024)
Repurchase of common stock				$ (3,777)	(3,777)
Repurchase of common stock (in shares)				145,238
Net income (loss)			(43,170)		(43,170)
Balances at Feb. 01, 2025	$ 162	$ 108,101	$ 275,901	$ (270,988)	$ 113,176
Balances (in shares) at Feb. 01, 2025	16,497,092				16,497,092
Balances (in shares) at Feb. 01, 2025				7,949,251	7,949,251

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Feb. 01, 2025	Apr. 10, 2025	Aug. 03, 2024
Document and Entity Information
Document Type	10-K
Document Period End Date	Feb. 01, 2025
Document Annual Report	true
Document Transition Report	false
Securities Act File Number	001-41886
Entity Registrant Name	CITI TRENDS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	52-2150697
Entity Address, Address Line One	104 Coleman Boulevard
Entity Address, City or Town	Savannah
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	31408
City Area Code	912
Local Phone Number	236-1561
Title of 12(b) Security	Common Stock, $.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
ICFR Auditor Attestation Flag	true
Document Financial Statement Error Correction [Flag]	false
Entity Shell Company	false
Entity Public Float			$ 142,215,971
Entity Common Stock, Shares Outstanding		8,277,733
Documents Incorporated by Reference	Part III incorporates information from the registrant’s definitive proxy statement, to be filed with the Securities and Exchange Commission within 120 days after the close of the registrant’s fiscal year covered by this Annual Report on Form 10-K, with respect to the Annual Meeting of Stockholders to be held on June 5, 2025.
Current Fiscal Year End Date	--02-01
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	FY
Entity Central Index Key	0001318484
Amendment Flag	false
Auditor Firm ID	34
Auditor Name	Deloitte & Touche LLP
Auditor Location	Atlanta, Georgia

Income Taxes - Income Tax Benefit (Expense) Components (Details) $ in Thousands	12 Months Ended
	Feb. 01, 2025 USD ($) jurisdiction	Feb. 03, 2024 USD ($)	Jan. 28, 2023 USD ($)
Income Taxes
Benefits not recognized due to uncertainty	$ 0
Net operating loss ("NOL") carryforwards which are limited to offsetting taxable income in future years (as a percent).	80.00%
Valuation allowance, net	$ 16,519	$ 1,937
Credits carry back period	1 year
Credits carry forward period	20 years
Income tax benefit related to federal and state tax credits	$ 0	$ 2,200	$ 1,600
Federal
Income Taxes
Net operating loss ("NOL") carryforwards	39,600
State
Income Taxes
Net operating loss ("NOL") carryforwards	$ 1,700
Number of states in which ability to utilize tax credits is no longer more likely than not \| jurisdiction	1

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Feb. 01, 2025
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Summary of Significant Accounting Policies

12 Months Ended

Feb. 01, 2025

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

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

Disaggregation of Revenue


	Fiscal Year
Divisions	2024		2023		2022
Womens	27	%	27	%	26	%
Kids	23	%	23	%	23	%
Accessories & Beauty	17	%	17	%	18	%
Mens	17	%	17	%	17	%
Home & Lifestyle	10	%	9	%	8	%
Footwear	6	%	7	%	8	%

Cost of Sales

Earnings per Share


	Fiscal Year
	2024	2023	2022
Weighted average number of common shares outstanding (basic)	8,314,825	8,221,450	8,216,448
Incremental shares from assumed vesting of nonvested restricted stock	—	—	—
Average number of common shares and common stock equivalents outstanding	8,314,825	8,221,450	8,216,448

Advertising

The Company expenses advertising as incurred. Advertising expense for fiscal 2024, 2023 and 2022 was $2.3 million, $1.6 million and $0.8 million, respectively.

Operating Leases

Income Taxes

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 realization of the deferred tax asset is not considered more likely than not, then a valuation allowance is recorded to reduce the deferred tax asset to its net realizable value.

Business Operating Segment

New Accounting Pronouncements

Property and Equipment, net

12 Months Ended

Feb. 01, 2025

Property and Equipment, net

Property and Equipment, net

3. Property and Equipment, net

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


	February 1,		February 3,
	2025		2024
Buildings	$	4,849	$	4,786
Leasehold improvements		136,491		131,143
Furniture, fixtures and equipment		144,321		138,980
Computer equipment		59,993		56,666
Construction in progress		2,457		1,102
		348,111		332,677
Accumulated depreciation		(297,396)		(276,446)
	$	50,715	$	56,231

Property and Equipment, net (Tables)

12 Months Ended

Feb. 01, 2025

Property and Equipment, net

Schedule of the components of property and equipment

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


	February 1,		February 3,
	2025		2024
Buildings	$	4,849	$	4,786
Leasehold improvements		136,491		131,143
Furniture, fixtures and equipment		144,321		138,980
Computer equipment		59,993		56,666
Construction in progress		2,457		1,102
		348,111		332,677
Accumulated depreciation		(297,396)		(276,446)
	$	50,715	$	56,231

Subsequent Events

12 Months Ended

Feb. 01, 2025

Subsequent Events.

Subsequent Events

10. Subsequent Events

As previously disclosed in the Company’s Form 8-K filed on March 27, 2025, the Company entered into an Amended and Restated Cooperation Agreement (the “Cooperation Agreement”) with Fund 1 Investments, LLC, a Delaware limited liability company (the “Investor”) on March 25, 2025. The Cooperation Agreement amends and restates the cooperation agreement previously entered into by the parties on February 28, 2024.

Pursuant to the Cooperation Agreement, the Company agreed to, among other things, (i) appoint each of Wesley Calvert and Pamela Edwards to the Company’s Board of Directors (the “New Directors”) and (ii) nominate each of the New Directors, and David Heath, Charles Liu and Michael Kvitko for election to the Board at the Company’s 2025 annual meeting of stockholders (the “2025 Annual Meeting”).

The Investor also agreed to certain customary standstill provisions prohibiting it from, among other things, (i) soliciting proxies; (ii) advising or knowingly encouraging any person with respect to the voting or disposition of any securities of the Company, subject to limited exceptions; (iii) making public announcements regarding certain transactions involving the Company; and (iv) taking actions to change or influence the Board, management or the direction of certain Company matters; in each case as further described in the Cooperation Agreement. Until the Termination Date (as defined in the Cooperation Agreement), the Company and the Investor have also agreed to certain mutual non-disparagement provisions.

The Cooperation Agreement will terminate on the date that is 30 days prior to the closing of the window for the submission of stockholder director nominations for the Company’s 2026 annual meeting of stockholders; provided, however, that the Termination Date will be automatically extended to the date that is 30 days prior to the closing of the window for the submission of stockholder director nominations for the Company’s 2027 annual meeting of stockholders if the Company’s stock price meets certain thresholds as described in the Cooperation Agreement.

On April 10, 2025 the Company amended the five-year, $75 million credit facility with Bank of America to extend the maturity date to April 10, 2030.

The 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 0.25% and permits the payment of cash dividends subject to certain limitations.

Borrowings under the credit facility bear interest (a) for SOFR Loans, at a rate equal to the SOFR Rate plus a SOFR adjustment equal to 0.10% plus either 1.50%, 1.75% or 2.00%, 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% and (iii) the Term SOFR Rate plus 1.0%, plus, in each case either 0.50%, 0.75% or 1.00%, based in any such case on the average daily availability for borrowings under the facility.

Stockholders' Equity - Fair Value Assumptions (Details) - Performance-Based Restricted Stock	Nov. 18, 2024 $ / shares
Stockholders' Equity
Stock Price on grant date	$ 16.33
Risk-free interest rate	4.21%
Expected volatility (annualized)	62.90%
Dividend yield	0.00%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Segment Reporting

12 Months Ended

Feb. 01, 2025

Segment Reporting

Segment Reporting

9. Segment Reporting

The Company is an off-price value retailer of fashion apparel, accessories and home trends primarily for African American families. The retail operations represent a single operating segment based on the way the Company manages its business. The Company’s Chief Executive Officer, as our chief operating decision maker (“CODM”), manages and allocates resources to the operations of the Company on a consolidated basis. This enables the Chief Executive Officer to assess the Company’s overall level of available resources and determine how best to deploy these resources across retail stores that are in line with the Company’s long-term company-wide strategic goals. 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. The CODM assesses performance based on consolidated net (loss) income that is reported on the statement of operations as part of the annual budgeting and forecasting process. The CODM considers budget-to-actual variances on a monthly basis when making decisions about allocating capital and personnel. The CODM does not review assets in evaluating results, therefore such information is not provided.

The following table summarizes the Company’s one reportable segment profit or loss, including significant segment expenses, and includes the reconciliation to consolidated net (loss) income:



	Fiscal Year
		2024		2023		2022
Net sales	$	753,079	$	747,941	$	795,011
Cost of sales (exclusive of depreciation shown separately below)
Merchandising and other		(430,300)		(418,103)		(441,242)
Freight in and out		(40,736)		(44,721)		(42,780)
Selling, general, and administrative expenses
Store expenses - payroll and related expenses		(91,558)		(90,405)		(90,295)
Store expenses - rent		(66,660)		(67,110)		(66,431)
Corporate expenses - payroll and related expenses		(29,614)		(26,189)		(26,859)
Distribution center expenses - payroll and related expenses		(16,686)		(17,412)		(15,549)
Other segment expenses ⁽¹⁾		(95,655)		(83,414)		(80,043)
Depreciation		(18,822)		(18,990)		(20,595)
Asset impairment		(2,536)		(1,051)		—
Gain on sale leaseback		—		—		64,088
Interest income		2,473		3,874		1,034
Interest expense		(319)		(306)		(306)
Income tax (provision) benefit		(5,836)		3,907		(17,141)
Net (loss) income	$	(43,170)	$	(11,979)	$	58,892

⁽¹⁾Other segment expenses represent other store, corporate and distribution center expenses including utilities, repairs, supplies, insurance, professional fees and other miscellaneous fees.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

Income Taxes - Reconciliation of Federal Statutory Tax Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 01, 2025	Feb. 03, 2024	Jan. 28, 2023
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	$ 7,840	$ 3,337	$ (15,967)
State income taxes, net of federal benefit	1,151	240	(2,738)
State tax credits	(1,001)	(167)	(268)
State tax credits - valuation allowance (net of federal benefit)		(774)	393
General business credits	1,518	1,840	1,871
Nondeductible compensation	(46)		(44)
Excess (deficit) tax benefits from stock-based compensation	(96)	(519)	(507)
Valuation Allowance	(14,582)
Other	(620)	(50)	119
Total income tax (expense) benefit	$ (5,836)	$ 3,907	$ (17,141)

Income Taxes (Tables)

12 Months Ended

Feb. 01, 2025

Income Taxes

Schedule of income tax benefit (expense)

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


	Fiscal Year
	2024		2023		2022
Current:
Federal	$	(275)	$	2,025	$	(12,616)
State		(420)		(329)		(4,426)
Total current		(695)		1,696		(17,042)
Deferred:
Federal		(2,266)		2,635		(1,031)
State		(2,875)		(424)		932
Total deferred		(5,141)		2,211		(99)
Total income tax (expense) benefit	$	(5,836)	$	3,907	$	(17,141)

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


	Fiscal Year
	2024		2023		2022
Statutory rate applied to income before income taxes	$	7,840	$	3,337	$	(15,967)
State income taxes, net of federal benefit		1,151		240		(2,738)
State tax credits		(1,001)		(167)		(268)
State tax credits - valuation allowance (net of federal benefit)		—		(774)		393
General business credits		1,518		1,840		1,871
Nondeductible compensation		(46)		—		(44)
Excess (deficit) tax benefits from stock-based compensation		(96)		(519)		(507)
Valuation Allowance		(14,582)		—		—
Other		(620)		(50)		119
Income tax (expense) benefit	$	(5,836)	$	3,907	$	(17,141)

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):


	February 1,		February 3,
	2025		2024
Deferred tax assets:
Inventory capitalization	$	1,930	$	2,422
Vacation liability		395		489
Operating lease liabilities		55,247		59,556
State tax credits		1,597		2,599
Federal tax credits		1,518		—
Stock compensation		545		1,059
Insurance liabilities		366		855
Research and development		2,227		1,399
Net operating loss and charitable contribution carryforwards		10,097		2,434
Other		585		507
Subtotal deferred tax assets		74,507		71,320
Less: Valuation allowance - net		(16,519)		(1,937)
Total deferred tax assets		57,988		69,383

Deferred tax liabilities:
Right of use asset		(52,935)		(57,690)
Book and tax depreciation differences		(4,783)		(6,115)
Prepaid expenses		(412)		(473)
Total deferred tax liabilities		(58,130)		(64,278)
Net deferred tax (liability) asset	$	(142)	$	5,105

Leases (Tables)

12 Months Ended

Feb. 01, 2025

Leases

Schedule of lease expense

Lease costs consisted of the following (in thousands):


	Fiscal Year
	2024		2023		2022
Operating lease cost	$	61,227	$	62,163	$	60,167
Variable lease cost		11,061		11,070		9,911
Short term lease cost		2,241		1,598		1,395
Total lease cost	$	74,529	$	74,831	$	71,473

Schedule of future minimum rent payments under operating leases

Future minimum lease payments as of February 1, 2025 are as follows (in thousands):


Fiscal Year	Lease Costs
2025	$	60,651
2026		49,602
2027		38,230
2028		29,989
2029		21,595
Thereafter		89,197
Total future minimum lease payments		289,264
Less: imputed interest		(68,865)	(1)
Total present value of lease liabilities	$	220,399	(2)

(1)

Calculated using the incremental borrowing 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
	February 1, 2025		February 3, 2024		2022
Cash paid for operating leases	$	62,582	$	68,371	$	56,053
Right of use assets obtained in exchange for new operating lease liabilities	$	33,183	$	27,836	$	101,241

Weighted average remaining lease term (years) - operating leases		7.26		7.54		7.83
Weighted average discount rate - operating leases		5.61%		5.04%		4.49%

Summary of Significant Accounting Policies - Returns and Disaggregation of Revenue (Details) - USD ($) $ in Millions	12 Months Ended
	Feb. 01, 2025	Feb. 03, 2024	Jan. 28, 2023
Revenue, initial application period, cumulative effect transition
Period of time company allows customers to return merchandise	30 days
Estimated refund liability	$ 0.2	$ 0.2
Carrying value of return asset	0.1	0.1
Distribution center costs	$ 32.1	$ 31.0	$ 26.3
Womens
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	27.00%	27.00%	26.00%
Kids
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	23.00%	23.00%	23.00%
Accessories & Beauty
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%
Mens
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	17.00%	17.00%	17.00%
Home & Lifestyle
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	10.00%	9.00%	8.00%
Footwear
Revenue, initial application period, cumulative effect transition
Revenue from contracts with customers disaggregated by major product line (as a percent)	6.00%	7.00%	8.00%

Stockholders' Equity - Time-Based Nonvested Restricted Stock Granted to Employees (Details) - USD ($)		12 Months Ended
	Nov. 18, 2024	Feb. 01, 2025	Feb. 03, 2024	Jan. 28, 2023
Stockholders' Equity
Shares reserved for future grants		360,954
Income tax expense (benefits)		$ 100,000	$ 500,000	$ 500,000
Selling, General and Administrative Expenses
Stockholders' Equity
Stock-based compensation expense		3,300,000	$ 4,100,000	$ 3,600,000
Time-Based Restricted Stock
Stockholders' Equity
Unrecognized compensation expense		$ 4,500,000
Grant date fair value price per share		$ 21.08
Time-Based Restricted Stock \| Employee Share-Based Payment Arrangement
Stockholders' Equity
Vesting period		3 years
Time-Based Restricted Stock \| Director
Stockholders' Equity
Vesting period		1 year
Performance-Based Restricted Stock Units
Stockholders' Equity
Vesting period		3 years
Compensation expense		$ 0
Grant date fair value price per share		$ 23.52
Performance-Based Restricted Stock
Stockholders' Equity
Compensation expense		$ 300,000
Fair value of share-based awards	$ 3,360,000
Grant date fair value price per share	$ 10.45	$ 10.45
Performance-Based Restricted Stock \| CEO
Stockholders' Equity
Number of trading days	45 days

Stockholders' Equity - Repurchases of common stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Feb. 01, 2025	Jan. 28, 2023
Stockholders' Equity
Total number of shares purchased	145	331
Average price paid per share (including commissions)	$ 25.99	$ 30.22
Total investment	$ 3,777	$ 10,000
Remaining value of shares available for repurchase	$ 46,200

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Feb. 01, 2025

Summary of Significant Accounting Policies

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


	Fiscal Year
Divisions	2024		2023		2022
Womens	27	%	27	%	26	%
Kids	23	%	23	%	23	%
Accessories & Beauty	17	%	17	%	18	%
Mens	17	%	17	%	17	%
Home & Lifestyle	10	%	9	%	8	%
Footwear	6	%	7	%	8	%

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


	Fiscal Year
	2024	2023	2022
Weighted average number of common shares outstanding (basic)	8,314,825	8,221,450	8,216,448
Incremental shares from assumed vesting of nonvested restricted stock	—	—	—
Average number of common shares and common stock equivalents outstanding	8,314,825	8,221,450	8,216,448

Consolidated Balance Sheets - USD ($) $ in Thousands	Feb. 01, 2025	Feb. 03, 2024
Current assets:
Cash and cash equivalents	$ 61,085	$ 79,706
Inventory	122,640	130,432
Prepaid and other current assets	10,216	10,838
Income tax receivable	3,119	4,123
Total current assets	197,060	225,099
Property and equipment	50,715	56,231
Operating lease right of use assets	214,148	231,281
Deferred income taxes		5,105
Other assets	846	1,005
Total assets	462,769	518,721
Current liabilities:
Accounts payable	102,456	100,366
Operating lease liabilities	47,724	45,842
Accrued expenses	16,647	16,466
Accrued compensation	7,176	6,846
Layaway deposits	388	384
Total current liabilities	174,391	169,904
Noncurrent operating lease liabilities	172,675	188,810
Deferred Tax Liability	142
Other long-term liabilities	2,385	2,301
Total liabilities	349,593	361,015
Stockholders' equity:
Common stock, $0.01 par value. Authorized 32,000,000 shares; 16,497,092 shares issued as of February 1, 2025 and 16,354,714 shares issued as of February 3, 2024; 8,547,841 shares outstanding as of February 1, 2025 and 8,550,701 shares outstanding as of February 3, 2024	162	160
Paid in capital	108,101	105,686
Retained earnings	275,901	319,071
Treasury stock, at cost; 7,949,251 shares held as of February 1, 2025 and 7,804,013 shares held as of February 3, 2024	(270,988)	(267,211)
Total stockholders' equity	113,176	157,706
Commitments and contingencies (Note 7)
Total liabilities and stockholders' equity	$ 462,769	$ 518,721

Leases (Details) $ in Thousands	1 Months Ended		12 Months Ended
Leases (Details) $ in Thousands	Sep. 30, 2022 period	Apr. 30, 2022 period	Jan. 28, 2023 USD ($)	Feb. 01, 2025
Leases
Lease term				5 years
Gain on sale-leasebacks \| $			$ 64,088
Distribution Center Darlington, South Carolina
Leases
Sale leaseback transaction, term of lease		20 years
Sale leaseback transaction, number of additional periods		6
Sale leaseback transaction, renewal term		5 years
Distribution Center Roland, Oklahoma
Leases
Sale leaseback transaction, term of lease	15 years
Sale leaseback transaction, number of additional periods	6
Sale leaseback transaction, renewal term	5 years
Minimum
Leases
Extension term				1 year
Maximum
Leases
Extension term				5 years

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Feb. 01, 2025	Feb. 03, 2024	Jan. 28, 2023
Operating activities:
Net (loss) income	$ (43,170)	$ (11,979)	$ 58,892
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation	18,822	18,990	20,595
Non-cash operating lease costs	48,863	50,462	51,310
Asset impairment	2,536	1,051
Loss on disposal of property and equipment	27	238	10
Deferred income taxes	5,247	(2,211)	99
Insurance proceeds related to operating activities		3,483	1,575
Non-cash stock-based compensation expense	3,302	4,095	3,635
Gain on sale of assets or insurance related activities		(3,483)	(64,088)
Changes in assets and liabilities:
Inventory	7,792	(24,638)	16,826
Prepaid and other current assets	622	2,139	1,660
Other assets	160	178	134
Accounts payable	101	17,861	(18,329)
Accrued expenses and other long-term liabilities	(49,489)	(58,318)	(54,844)
Accrued compensation	330	(3,977)	(15,073)
Income tax payable/receivable	1,004	(3,508)	3,372
Layaway deposits	4	40	(20)
Net cash (used in) provided by operating activities	(3,849)	(9,577)	5,754
Investing activities:
Purchases of property and equipment	(10,108)	(14,875)	(22,287)
Insurance proceeds related to investing activities		1,517	1,370
Proceeds from sale-leasebacks			81,098
Net cash (used in) provided by investing activities	(10,108)	(13,358)	60,181
Financing activities:
Cash used to settle withholding taxes on vested restricted stock	(887)	(854)	(2,228)
Repurchase of common stock	(3,777)		(10,000)
Net cash used in financing activities	(4,664)	(854)	(12,228)
Net (decrease) increase in cash and cash equivalents	(18,621)	(23,789)	53,707
Cash and cash equivalents:
Beginning of year	79,706	103,495	49,788
End of year	61,085	79,706	103,495
Supplemental disclosures of cash flow information:
Cash paid for interest	168	159	158
Cash (receipts) payments of income taxes	(415)	1,813	13,842
Supplemental disclosures of non-cash investing activities:
Accrual for purchases of property and equipment	$ 4,446	$ 2,936	$ 1,522

Leases - Future Minimum Lease Payments (Details) $ in Thousands	Feb. 01, 2025 USD ($)
Future minimum lease payments under operating leases
2025	$ 60,651
2026	49,602
2027	38,230
2028	29,989
2029	21,595
Thereafter	89,197
Total future minimum lease payments	289,264
Less: imputed interest	(68,865)
Total present value of lease liabilities	$ 220,399
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Operating Lease, Liability, Current, Operating Lease, Liability, Noncurrent

Revolving Line of Credit (Details) $ in Millions		1 Months Ended
Revolving Line of Credit (Details) $ in Millions	Oct. 27, 2011 USD ($)	May 31, 2023 USD ($) agreement	Feb. 01, 2025 USD ($)
Line of Credit
Revolving Line of Credit
Term of credit facility	5 years
Maximum borrowing capacity	$ 50.0
Credit commitment		$ 75.0
Borrowing capacity, accordion feature		25.0
Maximum borrowing capacity including accordion expansion		$ 100.0
Number of covenants \| agreement		1
Unused commitment fee (as a percent)		0.20%
Debt outstanding			$ 0.0
Line of Credit \| Secured Overnight Financing Rate
Revolving Line of Credit
Increase pricing for loans (as a percent)		0.10%
Line of Credit \| Federal Fund Rate
Revolving Line of Credit
Margin added to variable rate (as a percent)		0.50%
Line of Credit \| Eurodollar
Revolving Line of Credit
Increase pricing for loans (as a percent)		1.00%
Letter of Credit
Revolving Line of Credit
Debt outstanding			$ 2.2
First interest rate \| Line of Credit \| Eurodollar
Revolving Line of Credit
Margin added to variable rate (as a percent)		1.25%
First interest rate \| Line of Credit \| Federal Funds or Eurodollar Rate
Revolving Line of Credit
Margin added to variable rate (as a percent)		0.25%
Second interest rate \| Line of Credit \| Eurodollar
Revolving Line of Credit
Margin added to variable rate (as a percent)		1.50%
Second interest rate \| Line of Credit \| Federal Funds or Eurodollar Rate
Revolving Line of Credit
Margin added to variable rate (as a percent)		0.50%
Third interest rate \| Line of Credit \| Eurodollar
Revolving Line of Credit
Margin added to variable rate (as a percent)		1.75%
Third interest rate \| Line of Credit \| Federal Funds or Eurodollar Rate
Revolving Line of Credit
Margin added to variable rate (as a percent)		0.75%

Subsequent Events (Details) - Line of Credit $ in Millions			1 Months Ended
Subsequent Events (Details) - Line of Credit $ in Millions	Apr. 10, 2025 USD ($) agreement	Oct. 27, 2011 USD ($)	May 31, 2023 USD ($) agreement
Subsequent Event
Term of credit facility		5 years
Maximum borrowing capacity		$ 50
Credit commitment			$ 75
Borrowing capacity, accordion feature			25
Maximum borrowing capacity including accordion expansion			$ 100
Number of covenants \| agreement			1
Unused commitment fee (as a percent)			0.20%
Secured Overnight Financing Rate
Subsequent Event
Increase pricing for loans (as a percent)			0.10%
Federal Fund Rate
Subsequent Event
Margin added to variable rate (as a percent)			0.50%
Eurodollar
Subsequent Event
Increase pricing for loans (as a percent)			1.00%
Eurodollar \| First interest rate
Subsequent Event
Margin added to variable rate (as a percent)			1.25%
Eurodollar \| Second interest rate
Subsequent Event
Margin added to variable rate (as a percent)			1.50%
Eurodollar \| Third interest rate
Subsequent Event
Margin added to variable rate (as a percent)			1.75%
Federal Funds or Eurodollar Rate \| First interest rate
Subsequent Event
Margin added to variable rate (as a percent)			0.25%
Federal Funds or Eurodollar Rate \| Second interest rate
Subsequent Event
Margin added to variable rate (as a percent)			0.50%
Federal Funds or Eurodollar Rate \| Third interest rate
Subsequent Event
Margin added to variable rate (as a percent)			0.75%
Subsequent Event
Subsequent Event
Term of credit facility	5 years
Maximum borrowing capacity	$ 75
Credit commitment	75
Borrowing capacity, accordion feature	25
Maximum borrowing capacity including accordion expansion	$ 100
Number of covenants \| agreement	1
Unused commitment fee (as a percent)	0.25%
Subsequent Event \| Secured Overnight Financing Rate
Subsequent Event
Increase pricing for loans (as a percent)	0.10%
Subsequent Event \| Federal Fund Rate
Subsequent Event
Margin added to variable rate (as a percent)	0.50%
Subsequent Event \| Eurodollar
Subsequent Event
Increase pricing for loans (as a percent)	1.00%
Subsequent Event \| Eurodollar \| First interest rate
Subsequent Event
Margin added to variable rate (as a percent)	1.50%
Subsequent Event \| Eurodollar \| Second interest rate
Subsequent Event
Margin added to variable rate (as a percent)	1.75%
Subsequent Event \| Eurodollar \| Third interest rate
Subsequent Event
Margin added to variable rate (as a percent)	2.00%
Subsequent Event \| Federal Funds or Eurodollar Rate \| First interest rate
Subsequent Event
Margin added to variable rate (as a percent)	0.50%
Subsequent Event \| Federal Funds or Eurodollar Rate \| Second interest rate
Subsequent Event
Margin added to variable rate (as a percent)	0.75%
Subsequent Event \| Federal Funds or Eurodollar Rate \| Third interest rate
Subsequent Event
Margin added to variable rate (as a percent)	1.00%

Stockholders' Equity

12 Months Ended

Feb. 01, 2025

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
	2024		2023		2022
Total number of shares purchased		145		—		331
Average price paid per share (including commissions)	$	25.99	$	—	$	30.22
Total investment	$	3,777	$	—	$	10,000

At February 1, 2025, $46.2 million remained available under the Company’s previously announced stock repurchase authorization.

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-settled equity compensation. At February 1, 2025, the Company had 360,954 shares reserved for future grants under the Plan. During fiscal 2024, 2023 and 2022, non-cash stock-based compensation expense recorded in selling and general and administrative expenses totaled $3.3 million, $4.1 million and $3.6 million, respectively. The income tax 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 $0.1 million, $0.5 million and $0.5 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.

On November 18, 2024, the Company granted a performance-based restricted stock award to the Chief Executive Officer. The total number of shares earned depends on the attainment of predefined average stock price targets measured over rolling 45-trading-day periods during the performance period ending November 15, 2027. Earned shares vest annually over a period extending through November 15, 2028. The Company estimated the fair value of the awards using a Monte Carlo simulation including the following assumptions:


Stock Price on grant date		$16.33
Risk-free interest rate		4.21%
Expected volatility (annualized)		62.90%
Dividend yield		0%

The risk-free interest rate was derived from the continuously compounded yield of zero-coupon U.S. Treasury STRIPS. The expected volatility is based on the Company’s historical daily stock price movements for a period equal to the simulation term. The dividend yield was based on the Company’s recent dividend history. The total grant date fair value of the award was $3.36 million, or $10.45 per share.

The fair value associated with each tranche of the award will be recognized, straight-line, over the requisite service period for that tranche. Failure to meet the market conditions for an award does not result in reversal of previously recognized expense, so long as the required service period condition is met. The Company recognized $0.3 million of expense related to the award during the year ended February 1, 2025.

The following tables summarize activity related to nonvested restricted stock and PSUs and performance-based restricted stock during fiscal 2024:


	Time-Based Restricted Stock
		Weighted Average
	Nonvested	Grant Date
	Shares	Fair Value
Outstanding as of February 3, 2024	310,882	$	21.83
Granted	230,852		21.08
Vested	(156,201)		24.79
Forfeited	(51,450)		20.44
Outstanding as of February 1, 2025	334,083	$	20.15


	Performance-Based Restricted Stock
		Weighted Average
	Nonvested	Grant Date
	Shares	Fair Value
Outstanding as of February 3, 2024	—	$	—
Granted	321,502		10.45
Vested	—		—
Outstanding as of February 1, 2025	321,502	$	10.45


	Performance-Based Restricted Stock Units
		Weighted Average
	Nonvested	Grant Date
	Units	Fair Value
Outstanding as of February 3, 2024	99,467	$	16.80
Granted	82,193		23.52
Vested	—		—
Forfeited	(91,679)		18.84
Outstanding as of February 1, 2025	89,981	$	20.06

At February 1, 2025, there was $4.5 million of unrecognized compensation expense related to restricted stock. Based on current probable performance, we have determined no compensation expense is required on our PSUs.

Insider Trading Policies and Procedures	12 Months Ended
Insider Trading Policies and Procedures	Feb. 01, 2025
Insider Trading Policies and Procedures [Line Items]
Insider Trading Policies and Procedures Adopted	true

Income Taxes - Income Tax Benefit (Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Feb. 01, 2025	Feb. 03, 2024	Jan. 28, 2023
Current:
Federal	$ (275)	$ 2,025	$ (12,616)
State	(420)	(329)	(4,426)
Total current	(695)	1,696	(17,042)
Deferred:
Federal	(2,266)	2,635	(1,031)
State	(2,875)	(424)	932
Total deferred	(5,141)	2,211	(99)
Total income tax (expense) benefit	$ (5,836)	$ 3,907	$ (17,141)

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 270
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482964/270-10-50-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (ee)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Paragraph 12
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-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 4: http://www.xbrl.org/2003/role/exampleRef
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-Name Accounting Standards Codification
-Section 55
-Paragraph 231
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-231

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-9

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
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-Paragraph 1
-Subparagraph (SAB Topic 6.I.7)
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-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147482685/740-10-50-10

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147482659/740-20-45-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
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-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

+ Details

Segment Reporting (Details) $ in Thousands	12 Months Ended
Segment Reporting (Details) $ in Thousands	Feb. 01, 2025 USD ($) segment	Feb. 03, 2024 USD ($)	Jan. 28, 2023 USD ($)
Segment Reporting
Number of reportable segments \| segment	1
Net sales	$ 753,079	$ 747,941	$ 795,011
Cost of sales (exclusive of depreciation shown separately below)
Total cost of sales	(471,036)	(462,824)	(484,022)
Selling, general, and administrative expenses
Total selling, general, and administrative expenses	(300,173)	(284,530)	(279,177)
Depreciation	(18,822)	(18,990)	(20,595)
Asset impairment	(2,536)	(1,051)
Gain on sale leaseback			64,088
(Loss) income from operations	(39,488)	(19,454)	75,305
Interest income	2,473	3,874	1,034
Interest expense	(319)	(306)	(306)
(Loss) income before income taxes	(37,334)	(15,886)	76,033
Income tax (provision) benefit	(5,836)	3,907	(17,141)
Net (loss) income	(43,170)	(11,979)	58,892
Single Reportable Segment
Segment Reporting
Net sales	753,079	747,941	795,011
Cost of sales (exclusive of depreciation shown separately below)
Merchandising and other	(430,300)	(418,103)	(441,242)
Freight in and out	(40,736)	(44,721)	(42,780)
Selling, general, and administrative expenses
Depreciation	(18,822)	(18,990)	(20,595)
Asset impairment	(2,536)	(1,051)
Gain on sale leaseback			64,088
Interest income	2,473	3,874	1,034
Interest expense	(319)	(306)	(306)
Income tax (provision) benefit	(5,836)	3,907	(17,141)
Net (loss) income	(43,170)	(11,979)	58,892
Single Reportable Segment \| Store expenses
Selling, general, and administrative expenses
Payroll and related expenses	(91,558)	(90,405)	(90,295)
Rent	(66,660)	(67,110)	(66,431)
Other	(95,655)	(83,414)	(80,043)
Single Reportable Segment \| Corporate expenses
Selling, general, and administrative expenses
Payroll and related expenses	(29,614)	(26,189)	(26,859)
Single Reportable Segment \| Distribution center expenses
Selling, general, and administrative expenses
Payroll and related expenses	$ (16,686)	$ (17,412)	$ (15,549)

Consolidated Balance Sheets (Parenthetical) - $ / shares	Feb. 01, 2025	Feb. 03, 2024
Consolidated Balance Sheets
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized shares	32,000,000	32,000,000
Common stock, shares issued	16,497,092	16,354,714
Common stock, shares outstanding	8,547,841	8,550,701
Treasury stock, shares	7,949,251	7,804,013

Summary of Significant Accounting Policies - EPS and Advertising (Details) - USD ($) $ in Millions	12 Months Ended
	Feb. 01, 2025	Feb. 03, 2024	Jan. 28, 2023
Reconciliation of average number of common shares outstanding used to calculate basic and diluted earnings per share
Weighted average number of common shares outstanding (basic)	8,314,825	8,221,450	8,216,448
Average number of common shares and common stock equivalents outstanding	8,314,825	8,221,450	8,216,448
Advertising
Advertising expense	$ 2.3	$ 1.6	$ 0.8
Time-Based 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)	248,000	273,000	218,000

Revolving Line of Credit

12 Months Ended

Feb. 01, 2025

Revolving Line of Credit

Revolving Line of Credit

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. In May 2023, the facility was amended to replace the London Interbank Offered Rate (“LIBOR”) with the Secured Overnight Financing Rate (“SOFR”). See Note 10 to the Financial Statements for more information regarding the subsequent amendment to extend the maturity date of the current agreement.

The facility provides a $75 million credit commitment and a $25 million uncommitted “accordion” feature that under certain circumstances could allow the Company to increase the size of the facility to $100 million. The facility is secured by the Company’s inventory, accounts receivable and related assets, but not its real estate, fixtures and equipment, and it contains one financial covenant, a fixed charge coverage ratio, which is applicable and tested only in certain circumstances. The facility has an unused commitment fee of 0.20% and permits the payment of cash dividends subject to certain limitations.

Borrowings under the credit facility bear interest (a) for SOFR Loans, at a rate equal to the SOFR Rate plus a SOFR adjustment equal to 0.10% plus either 1.25%, 1.50% or 1.75%, or (b) for Base Rate Loans, at a rate equal to the highest of (i) the prime rate, (ii) the Federal Funds Rate plus 0.5% or (iii) the Eurodollar Rate plus 1.0%, plus, in each case either 0.25%, 0.50% or 0.75%, based in any such case on the average daily availability for borrowings under the facility.

As of February 1, 2025, the Company had no borrowings under the credit facility and $2.2 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://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481544/470-10-50-6

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-URI https://asc.fasb.org/1943274/2147481139/470-20-50-1B

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
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-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
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-URI https://asc.fasb.org/470/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Organization and Business (Details)	Feb. 01, 2025 state store
Organization and Business
Number of stores operated \| store	591
Number of states in which company operates \| state	33