Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 29, 2017 | Aug. 14, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | Citi Trends Inc | |
Entity Central Index Key | 1,318,484 | |
Document Type | 10-Q | |
Document Period End Date | Jul. 29, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --02-03 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 13,742,811 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 29, 2017 | Jan. 28, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 30,195 | $ 49,253 |
Short-term investment securities | 32,669 | 38,026 |
Inventory | 131,989 | 134,649 |
Prepaid and other current assets | 14,833 | 13,749 |
Income tax receivable | 1,950 | 1,635 |
Total current assets | 211,636 | 237,312 |
Property and equipment, net of accumulated depreciation of $221,153 and $212,742 as of July 29, 2017 and January 28, 2017, respectively | 63,795 | 59,280 |
Long-term investment securities | 26,748 | 26,691 |
Deferred tax asset | 6,765 | 8,506 |
Other assets | 720 | 725 |
Total assets | 309,664 | 332,514 |
Current liabilities: | ||
Accounts payable | 67,256 | 75,433 |
Accrued expenses | 17,120 | 15,584 |
Accrued compensation | 9,668 | 8,921 |
Layaway deposits | 1,803 | 471 |
Total current liabilities | 95,847 | 100,409 |
Other long-term liabilities | 8,705 | 8,514 |
Total liabilities | 104,552 | 108,923 |
Stockholders' equity: | ||
Common stock, $0.01 par value. Authorized 32,000,000 shares; 15,773,322 shares issued as of July 29, 2017 and 15,732,339 shares issued as of January 28, 2017; 13,742,811 shares outstanding as of July 29, 2017 and 14,899,151 shares outstanding as of January 28, 2017 | 156 | 155 |
Paid in capital | 89,893 | 90,036 |
Retained earnings | 155,203 | 148,585 |
Treasury stock, at cost; 2,030,511 shares held as of July 29, 2017 and 833,188 shares held as of January 28, 2017 | (40,140) | (15,185) |
Total stockholders' equity | 205,112 | 223,591 |
Commitments and contingencies (note 10) | ||
Total liabilities and stockholders' equity | $ 309,664 | $ 332,514 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Jul. 29, 2017 | Jan. 28, 2017 |
Consolidated Balance Sheets | ||
Accumulated depreciation | $ 221,153 | $ 212,742 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, Authorized shares | 32,000,000 | 32,000,000 |
Common stock, shares issued | 15,773,322 | 15,732,339 |
Common stock, shares outstanding | 13,742,811 | 14,899,151 |
Treasury stock, shares | 2,030,511 | 833,188 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | |
Consolidated Statements of Operations | ||||
Net sales | $ 166,200 | $ 155,276 | $ 366,155 | $ 348,948 |
Cost of sales (exclusive of depreciation shown separately below) | (102,175) | (95,150) | (224,565) | (212,959) |
Selling, general and administrative expenses | (59,834) | (56,105) | (120,321) | (114,436) |
Depreciation | (4,589) | (4,294) | (8,887) | (8,738) |
Asset impairment | (77) | (77) | (221) | |
Income from operations | (475) | (273) | 12,305 | 12,594 |
Interest income | 215 | 135 | 401 | 262 |
Interest expense | (37) | (41) | (74) | (81) |
Income before income taxes | (297) | (179) | 12,632 | 12,775 |
Income tax expense | 87 | 59 | (3,952) | (4,158) |
Net income | $ (210) | $ (120) | $ 8,680 | $ 8,617 |
Basic net income per common share | $ (0.01) | $ (0.01) | $ 0.60 | $ 0.59 |
Diluted net income per common share | $ (0.01) | $ (0.01) | $ 0.59 | $ 0.59 |
Weighted average number of shares outstanding | ||||
Basic | 14,381,738 | 14,675,712 | 14,550,435 | 14,634,946 |
Diluted | 14,381,738 | 14,675,712 | 14,598,425 | 14,639,545 |
Cash dividends declared per share | $ 0.08 | $ 0.06 | $ 0.14 | $ 0.12 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 29, 2017 | Jul. 30, 2016 | |
Operating activities: | ||
Net income | $ 8,680 | $ 8,617 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 8,887 | 8,738 |
Asset impairment | 77 | 221 |
Loss on disposal of property and equipment | 104 | |
Deferred income taxes | 1,741 | 909 |
Insurance proceeds from operating activities | 1,187 | |
Noncash stock-based compensation expense | 752 | 1,687 |
Excess tax benefits from stock-based payment arrangements | (182) | |
Changes in assets and liabilities: | ||
Inventory | 1,764 | 4,927 |
Prepaid and other current assets | (1,375) | (2,742) |
Other assets | 5 | (26) |
Accounts payable | (8,255) | (5,437) |
Accrued expenses and other long-term liabilities | 783 | (561) |
Accrued compensation | 747 | (4,893) |
Income tax receivable/payable | (315) | (624) |
Layaway deposits | 1,332 | 1,245 |
Net cash provided by operating activities | 16,010 | 11,983 |
Investing activities: | ||
Sales/redemptions of investment securities | 25,611 | 18,392 |
Purchases of investment securities | (20,311) | (16,792) |
Purchases of property and equipment | (12,900) | (9,989) |
Insurance proceeds from investing activities | 443 | |
Net cash used in investing activities | (7,157) | (8,389) |
Financing activities: | ||
Excess tax benefits from stock-based payment arrangements | 182 | |
Cash used to settle withholding taxes on stock option exercises and the vesting of nonvested restricted stock | (894) | (1,535) |
Dividends paid to stockholders | (2,062) | (1,751) |
Repurchase of common stock | (24,955) | |
Net cash used in financing activities | (27,911) | (3,104) |
Net increase in cash and cash equivalents | (19,058) | 490 |
Cash and cash equivalents: | ||
Beginning of period | 49,253 | 39,116 |
End of period | 30,195 | 39,606 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 63 | 63 |
Cash (refunds) payments of income taxes | 2,526 | 3,873 |
Supplemental disclosures of noncash investing activities: | ||
Accrual for purchases of property and equipment | $ 1,022 | $ 1,377 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jul. 29, 2017 | |
Basis of Presentation | |
Basis of Presentation | 1. Basis of Presentation Citi Trends, Inc. and its subsidiary (the “Company”) operate as a value-priced retailer of urban fashion apparel and accessories for the entire family. As of July 29, 2017, the Company operated 545 stores in 31 states. The condensed consolidated balance sheet as of July 29, 2017, the condensed consolidated statements of operations for the twenty-six and thirteen week periods ended July 29, 2017 and July 30, 2016, and the condensed consolidated statements of cash flows for the twenty-six week periods ended July 29, 2017 and July 30, 2016 have been prepared by the Company without audit. The condensed consolidated balance sheet as of January 28, 2017 has been derived from the audited financial statements as of that date, but does not include all required year-end disclosures. In the opinion of management, such statements include all adjustments considered necessary to present fairly the Company’s financial position as of July 29, 2017 and January 28, 2017, and its results of operations and cash flows for all periods presented. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s latest Annual Report on Form 10-K for the year ended January 28, 2017 and July 30, 2016, respectively. The accompanying unaudited condensed consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by U.S. GAAP for complete financial statements. Operating results for the twenty-six weeks ended July 29, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending February 3, 2018. The following contains references to fiscal years 2017 and 2016, which represent fiscal years ending or ended on February 3, 2018 and January 28, 2017, respectively. Fiscal 2017 has a 53-week accounting period and fiscal 2016 had a 52-week accounting period. |
Use of Estimates
Use of Estimates | 6 Months Ended |
Jul. 29, 2017 | |
Use of Estimates | |
Use of Estimates | 2. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and use assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates made by management 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 based on such periodic evaluations. |
Cash and Cash Equivalents_Conce
Cash and Cash Equivalents/Concentration of Credit Risk | 6 Months Ended |
Jul. 29, 2017 | |
Cash and Cash Equivalents/Concentration of Credit Risk | |
Cash and Cash Equivalents/Concentration of Credit Risk | 3. Cash and Cash Equivalents/Concentration of Credit Risk For purposes of the condensed consolidated balance sheets and condensed consolidated statements of cash flows, the Company considers all highly liquid investments with maturities at date of purchase of three months or less to be cash equivalents. Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash and cash equivalents. The Company places its cash and cash equivalents in what it believes to be high credit quality banks and institutional money market funds. The Company maintains cash accounts that exceed federally insured limits. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jul. 29, 2017 | |
Earnings per Share | |
Earnings per Share | 4. Earnings per Share Basic earnings per common share amounts are calculated using the weighted average number of common shares outstanding for the period. Diluted earnings per common share amounts are calculated using the weighted average number of common shares outstanding plus the additional dilution for all potentially dilutive securities, such as nonvested restricted stock and stock options. During loss periods, diluted loss per share amounts are based on the weighted average number of common shares outstanding, because the inclusion of common stock equivalents would be antidilutive. The dilutive effect of stock-based compensation arrangements is accounted for using the treasury stock method. This method assumes that the proceeds the Company receives from the exercise of stock options are used to repurchase common shares in the market. The Company includes as assumed proceeds the amount of compensation cost attributed to future services and not yet recognized, and the amount of tax benefits, if any, that would be credited to additional paid-in capital assuming exercise of outstanding options and vesting of nonvested restricted stock. For the twenty-six weeks ended July 29, 2017 and July 30, 2016, there were 0 and 7,000 stock options, respectively, and 144,000 and 259,000 shares of nonvested restricted stock, respectively, excluded from the calculation of diluted earnings per share because of antidilution. For the thirteen weeks ended July 29, 2017 and July 30, 2016, there were 0 and 3,000 stock options, respectively, and 178,000 and 227,000 shares of nonvested restricted stock, respectively, excluded from the calculation of diluted earnings per share because of antidilution. The following table provides a reconciliation of the average number of common shares outstanding used to calculate basic earnings per share to the number of common shares and common stock equivalents outstanding used in calculating diluted earnings per share for the twenty-six and thirteen week periods ended July 29, 2017 and July 30, 2016: Twenty-Six Weeks Ended July 29, 2017 July 30, 2016 Average number of common shares outstanding 14,550,435 14,634,946 Incremental shares from assumed exercises of stock options — — Incremental shares from assumed vesting of nonvested restricted stock 47,990 4,599 Average number of common shares and common stock equivalents outstanding 14,598,425 14,639,545 Thirteen Weeks Ended July 29, 2017 July 30, 2016 Average number of common shares outstanding 14,381,738 14,675,712 Incremental shares from assumed exercises of stock options — — Incremental shares from assumed vesting of nonvested restricted stock — — Average number of common shares and common stock equivalents outstanding 14,381,738 14,675,712 |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jul. 29, 2017 | |
Fair Value Measurement | |
Fair Value Measurement | 5. Fair Value Measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal or most advantageous market at the measurement date. Fair value is established according to a hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. Level 3 inputs are given the lowest priority in the fair value hierarchy. As of July 29, 2017, the Company’s investment securities are classified as held-to-maturity since the Company has the intent and ability to hold the investments to maturity. Such securities are carried at amortized cost plus accrued interest and consist of the following (in thousands): Gross Gross Amortized Unrealized Unrealized Fair Market Cost Gains Losses Value Short-term: Obligations of the U.S. Treasury and U.S. government agencies (Level 1) $ 10,398 $ — $ (12) $ 10,386 Obligations of states and municipalities (Level 2) 6,676 1 — 6,677 Bank certificates of deposit (Level 2) 15,595 — — 15,595 $ 32,669 $ 1 $ (12) $ 32,658 Long-term: Obligations of the U. S. Treasury (Level 1) $ 14,971 $ — $ (55) $ 14,916 Obligations of states and municipalities (Level 2) 60 — — 60 Bank certificates of deposit (Level 2) 11,717 — — 11,717 $ 26,748 $ — $ (55) $ 26,693 The amortized cost and fair market value of investment securities as of July 29, 2017 by contractual maturity are as follows (in thousands): Fair Amortized Market Cost Value Mature in one year or less $ 32,669 $ 32,658 Mature after one year through five years 26,748 26,693 $ 59,417 $ 59,351 As of January 28, 2017, the Company’s investment securities were classified as held-to-maturity and consisted of the following (in thousands): Gross Gross Amortized Unrealized Unrealized Fair Market Cost Gains Losses Value Short-term: Obligations of the U. S. Treasury (Level 1) $ 9,995 $ 1 $ — $ 9,996 Obligations of states and municipalities (Level 2) 14,816 2 (1) 14,817 Bank certificates of deposit (Level 2) 13,215 — — 13,215 $ 38,026 $ 3 $ (1) $ 38,028 Long-term: Obligations of the U. S. Treasury (Level 1) $ 15,011 $ — $ (51) $ 14,960 Bank certificates of deposit (Level 2) 11,680 — — 11,680 $ 26,691 $ — $ (51) $ 26,640 The amortized cost and fair market value of investment securities as of January 28, 2017 by contractual maturity were as follows (in thousands): Fair Amortized Market Cost Value Mature in one year or less $ 38,026 $ 38,028 Mature after one year through five years 26,691 26,640 $ 64,717 $ 64,668 There were no changes among the levels in the twenty-six weeks ended July 29, 2017. Fair market values of Level 2 investments are determined by management with the assistance of a third party pricing service. Because quoted prices in active markets for identical assets are not available, these prices are determined by the third party pricing service using observable market information such as quotes from less active markets and quoted prices of similar securities. |
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets | 6 Months Ended |
Jul. 29, 2017 | |
Impairment of Long-Lived Assets | |
Impairment of Long-Lived Assets | 6. Impairment of Long-Lived Assets If facts and circumstances indicate that a long-lived asset may be impaired, the carrying value is reviewed. If this review indicates that the carrying value of the asset will not be recovered as determined based on projected undiscounted cash flows related to the asset over its remaining life, the carrying value of the asset is reduced to its estimated fair value. Non-cash impairment expense related to leasehold improvements and fixtures and equipment at underperforming stores totaled $0.1 million and $0.2 million in the twenty-six week periods ended July 29, 2017 and July 30, 2016, respectively. |
Revolving Line of Credit
Revolving Line of Credit | 6 Months Ended |
Jul. 29, 2017 | |
Revolving Line of Credit | |
Revolving Line of Credit | 7. 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 on August 18, 2015, extending the maturity date to August 18, 2020. The amended facility provides a $50 million credit commitment and a $25 million uncommitted “accordion” feature that under certain circumstances could allow the Company to increase the size of the facility to $75 million. Borrowings, if any, under the facility bear interest (a) for LIBOR Rate Loans, at LIBOR plus either 1.25% or 1.5%, or (b) for Base Rate Loans, at a rate equal to the highest of (i) the prime rate plus either 0.25% or 0.50%, (ii) the Federal Funds Rate plus either 0.75% or 1.0%, or (iii) LIBOR plus either 1.25% or 1.5%, based in any such case on the average daily availability for borrowings under the facility. The facility is secured by the Company’s inventory, accounts receivable and related assets, but not its real estate, fixtures and equipment, and it contains one financial covenant, a fixed charge coverage ratio, which is applicable and tested only in certain circumstances. The facility has an unused commitment fee of 0.25% and permits the payment of cash dividends subject to certain limitations, including a requirement that there were no borrowings outstanding in the 30 days prior to the dividend payment and no borrowings are expected in the 30 days subsequent to the payment. The Company has had no borrowings under the credit facility. |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 29, 2017 | |
Income Taxes | |
Income Taxes | 8. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. ASC 740-270, Income Taxes – Interim Reporting , requires companies to calculate income taxes by applying their estimated full-year tax rate in each interim period unless the estimated full-year tax rate is not reliably predictable. For the twenty-six weeks ended July 29, 2017 and July 30, 2016, the Company utilized this annual effective tax rate method to calculate income taxes. |
Other Long-Term Liabilities
Other Long-Term Liabilities | 6 Months Ended |
Jul. 29, 2017 | |
Other Long-Term Liabilities | |
Other Long-Term Liabilities | 9. Other Long-Term Liabilities The components of other long-term liabilities as of July 29, 2017 and January 28, 2017 are as follows (in thousands): July 29, January 28, 2017 2017 Deferred rent $ 2,090 $ 1,810 Tenant improvement allowances 4,513 4,554 Other 2,102 2,150 $ 8,705 $ 8,514 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 29, 2017 | |
Commitments and Contingencies | |
Commitments and Contingencies | 10. Commitments and Contingencies The Company from time to time is involved in various legal proceedings incidental to the conduct of its business, including claims by customers, employees or former employees. Once it becomes probable that the Company will incur costs in connection with a legal proceeding and such costs can be reasonably estimated, it establishes appropriate reserves. While legal proceedings are subject to uncertainties and the outcome of any such matter is not predictable, the Company is not aware of any legal proceedings pending or threatened against it that it expects to have a material adverse effect on its financial condition, results of operations or liquidity. |
Stock Repurchase Program and Ca
Stock Repurchase Program and Cash Dividends | 6 Months Ended |
Jul. 29, 2017 | |
Stock Repurchase Program and Cash Dividends | |
Stock Repurchase Program and Cash Dividends | 11. Stock Repurchase Program and Cash Dividends Repurchases of Common Stock On April 10, 2017, the Company’s Board of Directors approved a program that authorized the purchase of up to $25.0 million in shares of the Company’s common stock. During the thirteen weeks ended July 29, 2017, the Company repurchased 1,197,000 shares of its common stock at an aggregate cost of $24.9 million. At July 29, 2017, $0.1 remained available for purchase under this program. Dividends On February 7, 2017, the Company’s Board of Directors declared a dividend of $0.06 per common share, which was paid on March 14, 2017 to stockholders of record as of February 28, 2017. On May 16, 2017, the Company’s Board of Directors declared a dividend of $0.08 per common share, which was paid on June 13, 2017 to stockholders of record as of May 30, 2016. On August 15, 2017, the Company’s Board of Directors declared a dividend of $0.08 per common share, payable September 12, 2017 to stockholders of record as of August 29, 2017. Any determination to declare and pay cash dividends for future quarters will be made by the Board of Directors. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jul. 29, 2017 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | 12. Recent Accounting Pronouncements Recently Adopted In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory (“ASU 2015-11”). ASU 2015-11 requires entities to measure inventory at the lower of cost or net realizable value, simplifying the current requirement that inventories be measured at the lower of cost or market. The ASU will not apply to inventories that are measured using the last-in, first-out method or retail inventory method. The guidance is effective prospectively for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. The Company adopted ASU 2015-11 in the first quarter of fiscal 2017. As the majority of the Company's inventory is accounted for under the retail inventory method, the adoption of this guidance did not have a material impact on the Company's consolidated balance sheet, results of operations or cash flows. In March 2016, the FASB issued ASU No. 2016-09, Compensation — Stock Compensation: Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). The new guidance changes how companies account for certain aspects of share-based payments to employees. Under previous accounting guidance, tax benefits and certain tax deficiencies arising from the vesting of share-based payments were recorded in additional paid-in-capital. The new guidance requires such benefits or deficiencies to be recognized as components of income tax expense in the statement of operations with the impact of such tax benefits or deficiencies to be combined with the “Deferred taxes” line in operating activities in the statement of cash flows. The ASU also allows election of an accounting policy whereby forfeitures of share-based payment awards are recognized as they occur, or alternatively, are accounted for on a prospective basis utilizing an estimate of expected forfeitures. Entities are required to apply the new guidance prospectively. The new standard is effective for fiscal years beginning after December 15, 2016. The Company adopted ASU 2016-09 in the first quarter of fiscal 2017, and, as a result, combined the impact of excess tax benefits from share-based payments with deferred taxes in the Consolidated Statement of Cash Flows and elected to recognize the impact of forfeitures as they occur. These impacts on the Company’s consolidated balance sheet, results of operations and cash flows were immaterial. Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). The guidance requires an entity to recognize revenue on contracts with customers relating to the transfer of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this, an entity is required to identify the contract with a customer; identify the separate performance obligations in the contract; determine the transaction price; allocate the transaction price to the separate performance obligations in the contract; and recognize revenue when (or as) the entity satisfies each performance obligation. In August of 2015, the FASB issued ASU 2015-14 which defers the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2017 and interim periods in the year of adoption. The Company may use either a full retrospective or modified retrospective approach to adopt these ASUs. The Company is planning to adopt ASU 2014-09 in fiscal 2018 beginning February 4, 2018. The Company is currently evaluating these ASUs including which transition approach to use, however, the Company does not expect adoption to have a material impact on its consolidated balance sheet, results of operations or cash flows. Additionally, the Company does not anticipate any significant changes to business processes, controls or systems as a result of adopting the new standard. In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016–02”) which replaces the existing guidance in ASC 840, Leases. The new standard establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and requires retrospective application. The Company will adopt ASU 2016-02 in fiscal 2019. The Company is currently in the process of evaluating the new lease guidance to determine the ultimate impact, however, the Company is party to 545 leases for individual retail locations with an average remaining contractual rent period of 3.1 years, and therefore has determined that the adoption of the new lease standard will have a significant impact on the Company’s consolidated financial statements. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Earnings per Share | |
Schedule of reconciliation of the number of average common shares outstanding used to calculate basic and diluted earnings per share | Twenty-Six Weeks Ended July 29, 2017 July 30, 2016 Average number of common shares outstanding 14,550,435 14,634,946 Incremental shares from assumed exercises of stock options — — Incremental shares from assumed vesting of nonvested restricted stock 47,990 4,599 Average number of common shares and common stock equivalents outstanding 14,598,425 14,639,545 Thirteen Weeks Ended July 29, 2017 July 30, 2016 Average number of common shares outstanding 14,381,738 14,675,712 Incremental shares from assumed exercises of stock options — — Incremental shares from assumed vesting of nonvested restricted stock — — Average number of common shares and common stock equivalents outstanding 14,381,738 14,675,712 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Fair Value Measurement | |
Schedule of investment securities classified as held-to-maturity | As of July 29, 2017, the Company’s investment securities are classified as held-to-maturity since the Company has the intent and ability to hold the investments to maturity. Such securities are carried at amortized cost plus accrued interest and consist of the following (in thousands): Gross Gross Amortized Unrealized Unrealized Fair Market Cost Gains Losses Value Short-term: Obligations of the U.S. Treasury and U.S. government agencies (Level 1) $ 10,398 $ — $ (12) $ 10,386 Obligations of states and municipalities (Level 2) 6,676 1 — 6,677 Bank certificates of deposit (Level 2) 15,595 — — 15,595 $ 32,669 $ 1 $ (12) $ 32,658 Long-term: Obligations of the U. S. Treasury (Level 1) $ 14,971 $ — $ (55) $ 14,916 Obligations of states and municipalities (Level 2) 60 — — 60 Bank certificates of deposit (Level 2) 11,717 — — 11,717 $ 26,748 $ — $ (55) $ 26,693 As of January 28, 2017, the Company’s investment securities were classified as held-to-maturity and consisted of the following (in thousands): Gross Gross Amortized Unrealized Unrealized Fair Market Cost Gains Losses Value Short-term: Obligations of the U. S. Treasury (Level 1) $ 9,995 $ 1 $ — $ 9,996 Obligations of states and municipalities (Level 2) 14,816 2 (1) 14,817 Bank certificates of deposit (Level 2) 13,215 — — 13,215 $ 38,026 $ 3 $ (1) $ 38,028 Long-term: Obligations of the U. S. Treasury (Level 1) $ 15,011 $ — $ (51) $ 14,960 Bank certificates of deposit (Level 2) 11,680 — — 11,680 $ 26,691 $ — $ (51) $ 26,640 |
Schedule of amortized cost and fair market value of investment securities by contractual maturity | The amortized cost and fair market value of investment securities as of July 29, 2017 by contractual maturity are as follows (in thousands): Fair Amortized Market Cost Value Mature in one year or less $ 32,669 $ 32,658 Mature after one year through five years 26,748 26,693 $ 59,417 $ 59,351 The amortized cost and fair market value of investment securities as of January 28, 2017 by contractual maturity were as follows (in thousands): Fair Amortized Market Cost Value Mature in one year or less $ 38,026 $ 38,028 Mature after one year through five years 26,691 26,640 $ 64,717 $ 64,668 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 6 Months Ended |
Jul. 29, 2017 | |
Other Long-Term Liabilities | |
Schedule of components of other long-term liabilities | The components of other long-term liabilities as of July 29, 2017 and January 28, 2017 are as follows (in thousands): July 29, January 28, 2017 2017 Deferred rent $ 2,090 $ 1,810 Tenant improvement allowances 4,513 4,554 Other 2,102 2,150 $ 8,705 $ 8,514 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 12 Months Ended | ||
Feb. 03, 2018 | Jan. 28, 2017 | Jul. 29, 2017storestate | |
Basis of Presentation | |||
Number of stores operated | store | 545 | ||
Number of states in which company operates | state | 31 | ||
Length of fiscal year | 371 days | 364 days |
Earnings per Share (Details)
Earnings per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Oct. 28, 2017 | Oct. 29, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | |
Reconciliation of average number of common shares outstanding used to calculate basic and diluted earnings per share | ||||
Average number of common shares outstanding | 14,381,738 | 14,675,712 | 14,550,435 | 14,634,946 |
Incremental shares from assumed vesting of nonvested restricted stock | 47,990 | 4,599 | ||
Average number of common shares and common stock equivalents outstanding | 14,381,738 | 14,675,712 | 14,598,425 | 14,639,545 |
Stock Options | ||||
Antidilutive securities | ||||
Shares excluded from the calculation of diluted earnings per share | 0 | 3,000 | 0 | 7,000 |
Restricted Stock | ||||
Antidilutive securities | ||||
Shares excluded from the calculation of diluted earnings per share | 178,000 | 227,000 | 144,000 | 259,000 |
Fair Value Measurement - Securi
Fair Value Measurement - Securities Carried at Amortized Cost Plus Accrued Interest (Details) - USD ($) $ in Thousands | Jul. 29, 2017 | Jan. 28, 2017 |
Investment securities classified as held to maturity | ||
Amortized Cost | $ 59,417 | $ 64,717 |
Total Fair Market Value | 59,351 | 64,668 |
Short-term Investments | ||
Investment securities classified as held to maturity | ||
Amortized Cost | 32,669 | 38,026 |
Gross Unrealized Gains | 1 | 3 |
Gross Unrealized Losses | (12) | (1) |
Total Fair Market Value | 32,658 | 38,028 |
Short-term Investments | Obligations of the U.S. Treasury | Fair Value, Inputs, Level 1 | ||
Investment securities classified as held to maturity | ||
Amortized Cost | 10,398 | 9,995 |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (12) | |
Total Fair Market Value | 10,386 | 9,996 |
Short-term Investments | Obligations of states and municipalities | Fair Value, Inputs, Level 2 | ||
Investment securities classified as held to maturity | ||
Amortized Cost | 6,676 | 14,816 |
Gross Unrealized Gains | 1 | 2 |
Gross Unrealized Losses | (1) | |
Total Fair Market Value | 6,677 | 14,817 |
Short-term Investments | Bank certificates of deposit | Fair Value, Inputs, Level 2 | ||
Investment securities classified as held to maturity | ||
Amortized Cost | 15,595 | 13,215 |
Total Fair Market Value | 15,595 | 13,215 |
Long Term Investments | ||
Investment securities classified as held to maturity | ||
Amortized Cost | 26,748 | 26,691 |
Gross Unrealized Losses | (55) | (51) |
Total Fair Market Value | 26,693 | 26,640 |
Long Term Investments | Obligations of the U.S. Treasury | Fair Value, Inputs, Level 1 | ||
Investment securities classified as held to maturity | ||
Amortized Cost | 14,971 | 15,011 |
Gross Unrealized Losses | (55) | (51) |
Total Fair Market Value | 14,916 | 14,960 |
Long Term Investments | Bank certificates of deposit | Fair Value, Inputs, Level 2 | ||
Investment securities classified as held to maturity | ||
Amortized Cost | 11,717 | 11,680 |
Total Fair Market Value | $ 11,717 | $ 11,680 |
Fair Value Measurement - Amorti
Fair Value Measurement - Amortized Cost and Fair Market Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jul. 29, 2017 | Jan. 28, 2017 |
Amortized Cost | ||
Mature in one year or less | $ 32,669 | $ 38,026 |
Mature after one year through five years | 26,748 | 26,691 |
Total | 59,417 | 64,717 |
Fair Market Value | ||
Mature in one year or less | 32,658 | 38,028 |
Mature after one year through five years | 26,693 | 26,640 |
Total Fair Market Value | 59,351 | $ 64,668 |
Changes among the fair value levels | ||
Changes between Level 1 to Level 2, Assets | $ 0 |
Impairment of Long-Lived Asse25
Impairment of Long-Lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Oct. 28, 2017 | Jul. 29, 2017 | Jul. 30, 2016 | |
Impairment of Long-Lived Assets | |||
Impairment expense related to leasehold improvements and fixtures and equipment | $ 77 | $ 77 | $ 221 |
Revolving Line of Credit (Detai
Revolving Line of Credit (Details) - Line of Credit $ in Millions | Aug. 18, 2015USD ($) | Oct. 27, 2011USD ($) | Jul. 29, 2017USD ($)bbl / agreement |
Revolving Line of Credit | |||
Term of credit facility | 5 years | ||
Maximum borrowing capacity | $ 50 | ||
Number of covenants | bbl / agreement | 1 | ||
Unused commitment fee (as a percent) | 0.25% | ||
Amount of outstanding borrowings prior to cash dividend payment within specified period, per covenant | $ 0 | ||
Period prior to cash dividend payment when no borrowings may be outstanding, per covenant | 30 days | ||
Amount of expected borrowings subsequent to cash dividend payment within specified period, per covenant | $ 0 | ||
Period subsequent to cash dividend payment when no borrowings may be expected, per covenant | 30 days | ||
Borrowings outstanding | $ 0 | ||
LIBOR Rate Loans | |||
Revolving Line of Credit | |||
Variable interest rate basis | LIBOR | ||
Debt Instrument, Variable Rate Base LIBOR | Base Rate Loans | |||
Revolving Line of Credit | |||
Variable interest rate basis | LIBOR | ||
Debt Instrument Variable Rate Prime Rate | Base Rate Loans | |||
Revolving Line of Credit | |||
Variable interest rate basis | prime rate | ||
Debt Instrument, Variable Rate Base Federal Funds Rate | Base Rate Loans | |||
Revolving Line of Credit | |||
Variable interest rate basis | Federal Funds Rate | ||
Amendment to credit facility | |||
Revolving Line of Credit | |||
Maximum borrowing capacity | $ 50 | ||
Borrowing capacity, accordion feature | 25 | ||
Maximum borrowing capacity including accordion expansion | $ 75 | ||
Amendment to credit facility | Debt Instrument, Variable Rate Base LIBOR | LIBOR Rate Loans | Minimum | |||
Revolving Line of Credit | |||
Margin added to variable rate (as a percent) | 1.25% | ||
Amendment to credit facility | Debt Instrument, Variable Rate Base LIBOR | LIBOR Rate Loans | Maximum | |||
Revolving Line of Credit | |||
Margin added to variable rate (as a percent) | 1.50% | ||
Amendment to credit facility | Debt Instrument Variable Rate Prime Rate | Base Rate Loans | Minimum | |||
Revolving Line of Credit | |||
Margin added to variable rate (as a percent) | 0.25% | ||
Amendment to credit facility | Debt Instrument Variable Rate Prime Rate | Base Rate Loans | Maximum | |||
Revolving Line of Credit | |||
Margin added to variable rate (as a percent) | 0.50% | ||
Amendment to credit facility | Debt Instrument, Variable Rate Base Federal Funds Rate | Base Rate Loans | Minimum | |||
Revolving Line of Credit | |||
Margin added to variable rate (as a percent) | 0.75% | ||
Amendment to credit facility | Debt Instrument, Variable Rate Base Federal Funds Rate | Base Rate Loans | Maximum | |||
Revolving Line of Credit | |||
Margin added to variable rate (as a percent) | 1.00% |
Other Long-Term Liabilities (De
Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | Jul. 29, 2017 | Jan. 28, 2017 |
Other Long-Term Liabilities | ||
Deferred rent | $ 2,090 | $ 1,810 |
Tenant improvement allowances | 4,513 | 4,554 |
Other | 2,102 | 2,150 |
Other long-term liabilities total | $ 8,705 | $ 8,514 |
Stock Repurchase Program and 28
Stock Repurchase Program and Cash Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 15, 2017 | May 16, 2017 | Feb. 07, 2017 | Oct. 28, 2017 | Jul. 29, 2017 | Oct. 29, 2016 | Jul. 29, 2017 | Jul. 30, 2016 | Apr. 10, 2017 |
Stockholders' Equity | |||||||||
Cash dividends declared per share | $ 0.08 | $ 0.08 | $ 0.06 | $ 0.08 | $ 0.06 | $ 0.14 | $ 0.12 | ||
Stock Repurchase Program | |||||||||
Stockholders' Equity | |||||||||
Stock Repurchase Program, Authorized Amount | $ 25 | ||||||||
Stock Repurchased During Period Shares | 1,197,000 | ||||||||
Treasury Stock, Value, Acquired, Cost Method | $ 24.9 | ||||||||
Additional shares which could be repurchased | $ 0.1 | $ 0.1 |
Recent Accounting Pronounceme29
Recent Accounting Pronouncements (Details) | 6 Months Ended |
Jul. 29, 2017lease | |
Summary of Significant Accounting Policies | |
Number of leases | 545 |
Average remaining contractual rent period | 3 years 1 month 6 days |