UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)



☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended August 3, 2024



☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 000-41886

CITI TRENDS, INC.

(Exact name of registrant as specified in its charter)



Delaware		52-2150697
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

104 Coleman Boulevard
Savannah, Georgia		31408
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code (912) 236-1561

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol	Name of each exchange on which registered
Common Stock, $0.01 par value	CTRN	NASDAQ Stock Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer ☐ Accelerated Filer ☒	Non-Accelerated Filer ☐

Smaller Reporting Company ☐	Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 30, 2024, the registrant had 8,615,343 outstanding shares of common stock, $0.01 par value per share.

Table of Contents

CITI TRENDS, INC.

FORM 10-Q

TABLE OF CONTENTS


		PAGE
		NUMBER
PART I	FINANCIAL INFORMATION

Item 1	Financial Statements (unaudited)

	Condensed Consolidated Balance Sheets	3

	Condensed Consolidated Statements of Operations	4

	Condensed Consolidated Statements of Cash Flows	5

	Condensed Consolidated Statements of Stockholders’ Equity	6

	Notes to the Condensed Consolidated Financial Statements	7

Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	11

Item 3	Quantitative and Qualitative Disclosures About Market Risk	16

Item 4	Controls and Procedures	16

PART II	OTHER INFORMATION

Item 1	Legal Proceedings	17

Item 1A	Risk Factors	17

Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	17

Item 3	Defaults Upon Senior Securities	17

Item 4	Mine Safety Disclosures	17

Item 5	Other Information	17

Item 6	Exhibits	18

	SIGNATURES	19

Table of Contents

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

Citi Trends, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(in thousands, except share data)


	August 3,		February 3,
	2024		2024
Assets
Current assets:
Cash and cash equivalents	$	59,302	$	79,706
Inventory		134,996		130,432
Prepaid and other current assets		16,922		10,838
Income tax receivable		3,896		4,123
Total current assets		215,116		225,099
Property and equipment, net of accumulated depreciation of $291,466 and $276,446 as of August 3, 2024 and February 3, 2024, respectively		51,702		56,231
Operating lease right of use assets		225,278		231,281
Deferred income taxes		13,715		5,105
Other assets		920		1,005
Total assets	$	506,731	$	518,721

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	110,540	$	100,366
Operating lease liabilities		49,071		45,842
Accrued expenses		17,056		16,466
Accrued compensation		7,724		6,846
Layaway deposits		1,092		384
Total current liabilities		185,483		169,904
Noncurrent operating lease liabilities		182,869		188,810
Other long-term liabilities		1,789		2,301
Total liabilities		370,141		361,015

Stockholders’ equity:
Common stock, $0.01 par value. Authorized 32,000,000 shares; 16,419,356 shares issued as of August 3, 2024 and 16,354,714 shares issued as of February 3, 2024; 8,615,343 shares outstanding as of August 3, 2024 and 8,550,701 shares outstanding as of February 3, 2024		162		160
Paid in capital		106,407		105,686
Retained earnings		297,232		319,071
Treasury stock, at cost; 7,804,013 shares held as of August 3, 2024 and February 3, 2024		(267,211)		(267,211)
Total stockholders’ equity		136,590		157,706

Commitments and contingencies (Note 7)
Total liabilities and stockholders’ equity	$	506,731	$	518,721

See accompanying notes to the condensed consolidated financial statements (unaudited).

Table of Contents

Citi Trends, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(in thousands, except per share amounts)


	Thirteen Weeks Ended
	August 3,		July 29,
	2024		2023
Net sales	$	176,552	$	173,554

Cost of sales (exclusive of depreciation)		(121,624)		(107,226)
Selling, general and administrative expenses		(73,780)		(69,543)
Depreciation		(4,782)		(4,708)
Asset impairment		(1,261)		—
Loss from operations		(24,895)		(7,923)
Interest income		611		887
Interest expense		(80)		(77)
Loss before income taxes		(24,364)		(7,113)
Income tax benefit		5,951		2,081
Net loss	$	(18,413)	$	(5,032)

Basic net loss per common share	$	(2.21)	$	(0.61)
Diluted net loss per common share	$	(2.21)	$	(0.61)

Weighted average number of shares outstanding
Basic		8,337		8,225
Diluted		8,337		8,225

Citi Trends, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(in thousands, except per share amounts)


	Twenty-Six Weeks Ended
	August 3,		July 29,
	2024		2023
Net sales	$	362,841	$	353,242

Cost of sales (exclusive of depreciation)		(235,878)		(220,885)
Selling, general and administrative expenses		(147,991)		(140,350)
Depreciation		(9,576)		(9,389)
Asset impairment		(1,261)		—
Loss from operations		(31,865)		(17,382)
Interest income		1,460		1,910
Interest expense		(158)		(152)
Loss before income taxes		(30,563)		(15,624)
Income tax benefit		8,724		3,957
Net loss	$	(21,839)	$	(11,667)

Basic net loss per common share	$	(2.63)	$	(1.42)
Diluted net loss per common share	$	(2.63)	$	(1.42)

Weighted average number of shares outstanding
Basic		8,295		8,203
Diluted		8,295		8,203

See accompanying notes to the condensed consolidated financial statements (unaudited).

Table of Contents

Citi Trends, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)


	Twenty-Six Weeks Ended
	August 3,		July 29,
	2024		2023
Operating activities:
Net loss	$	(21,839)	$	(11,667)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation

SEC Form 10-Q filed by Citi Trends Inc.