What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-09-09 compared with 2026-06-10 · 109 added, 35 removed, 237 unchanged (38% of the section changed)

8 unchanged sentences

Total current assets

Property and equipment, net of accumulated depreciation of $ 306,694 and $ 301,921 as of May 2, 2026 and January 31, 2026, respectively.

Property and equipment, net of accumulated depreciation of $ 311,640 and $ 301,921 as of August 1, 2026 and January 31, 2026, respectively.

Operating lease right of use assets

14 unchanged sentences

Authorized 32,000,000 shares;

16,556,574 shares issued as of May 2, 2026 and 16,545,723 shares issued as of January 31, 2026;

8,356,768 shares outstanding as of May 2, 2026 and 8,345,917 shares outstanding as of January 31, 2026

16,527,405 shares issued as of August 1, 2026 and 16,545,723 shares issued as of January 31, 2026;

8,327,599 shares outstanding as of August 1, 2026 and 8,345,917 shares outstanding as of January 31, 2026.

Paid in capital

1 unchanged sentence

Treasury stock, at cost;

8,199,806 shares held as of May 2, 2026 and January 31, 2026

8,199,806 shares held as of August 1, 2026 and January 31, 2026

Total stockholders’ equity

9 unchanged sentences

Asset impairment

Income from operations

Gain on sale of building

Gain on insurance related to operating activities

Income (loss) from operations

Interest income

Interest expense

Income before income taxes

Income tax expense

Basic net earnings per common share

Diluted net earnings per common share

Income (loss) before income taxes

Income tax benefit

Net income (loss)

Basic net earnings (loss) per common share

Diluted net earnings (loss) per common share

Weighted average number of shares outstanding

Citi Trends, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

Twenty-Six Weeks Ended

Cost of sales (exclusive of depreciation)

Selling, general and administrative expenses

Asset impairment

Gain on sale of building

Gain on insurance related to operating activities

Income (loss) from operations

Interest income

Interest expense

Income (loss) before income taxes

Income tax benefit

Net income (loss)

Basic net earnings (loss) per common share

Diluted net earnings (loss) per common share

Weighted average number of shares outstanding

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

2 unchanged sentences

(in thousands)

Thirteen Weeks Ended

Twenty-Six Weeks Ended

Operating activities:

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Net income (loss)

Adjustments to reconcile net income (loss) to net cash used in operating activities:

Asset impairment

1 unchanged sentence

Loss on disposal of property and equipment

Deferred income taxes

Insurance proceeds related to operating activities

Non-cash stock-based compensation expense

Gain on sale of building

Gain on insurance related to operating activities

Changes in assets and liabilities:

8 unchanged sentences

Purchases of property and equipment

Net cash used in investing activities

Proceeds from sale of building

Net cash provided by (used in) investing activities

Financing activities:

Cash used to settle withholding taxes on the vesting of nonvested restricted stock

Cash used to settle withholding taxes on the vesting of restricted stock

Repurchases of common stock

Net cash used in financing activities

Net increase (decrease) in cash and cash equivalents

Net decrease in cash and cash equivalents

Cash and cash equivalents:

3 unchanged sentences

Cash paid for interest

Cash refunds of income taxes

Cash (refunds) payments of income taxes

Supplemental disclosures of non-cash investing activities:

10 unchanged sentences

Shares withheld for settlement of employee taxes on vesting

Repurchase of common stock

Net income (loss)

Balances — May 2, 2026

Vesting of restricted shares

Grant of restricted shares

Forfeiture of restricted shares

Stock-based compensation expense

Shares withheld for settlement of employee taxes on vesting

Net income (loss)

Balances — August 1, 2026

Treasury Stock

7 unchanged sentences

Balances — May 3, 2025

Grant of restricted shares

Forfeiture of restricted shares

Stock-based compensation expense

Shares withheld for settlement of employee taxes on vesting

Net income (loss)

Balances — August 2, 2025

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

1 unchanged sentence

Notes to the Condensed Consolidated Financial Statements (unaudited)

(in thousands, except per share amounts)

August 1, 2026

Significant Accounting Policies

1 unchanged sentence

Citi Trends, Inc.

and its subsidiary (the “Company”) is the leading off-price value retailer of apparel, accessories and home trends primarily for Black families in the United States.

As of May 2, 2026, the Company operated 591 stores in urban, suburban and rural markets in 33 states.

and its subsidiary (the “Company”) is a leading off-price value retailer of apparel, accessories and home trends primarily for Black families in the United States.

As of August 1, 2026, the Company operated 594 stores in urban, suburban, and rural markets in 33 states.

The condensed consolidated financial statements are prepared in accordance with U.S.

4 unchanged sentences

These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the 2025 Form 10-K.

Operating results for the first quarter of 2026 are not necessarily indicative of the results that may be expected for the fiscal year as a result of the seasonality of the business and the current economic uncertainty.

Operating results for the first two quarters of 2026 are not necessarily indicative of the results that may be expected for the fiscal year as a result of the seasonality of the business, and the current economic uncertainty.

The following contains references to fiscal years 2026 and 2025, which represent fiscal years ending or ended on January 30, 2027 and January 31, 2026, respectively.

11 unchanged sentences

The Company includes the amount of compensation cost attributed to future services and not yet recognized as assumed proceeds.

For the first quarter of 2026 and 2025, there were no shares of nonvested restricted stock excluded from the calculation of diluted earnings per share because of antidilution.

For the second quarter of 2026 and 2025, there were 287,366 shares and no shares of nonvested restricted stock, respectively, excluded from the calculation of diluted earnings per share because of antidilution.

For the twenty-six weeks ended August 1, 2026 and August 2, 2025, there were no shares of nonvested restricted stock excluded from the calculation of diluted earnings per share because of antidilution.

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

Thirteen Weeks Ended

August 1, 2026

August 2, 2025

Weighted average number of common shares outstanding (basic)

1 unchanged sentence

Weighted average number of common shares and common stock equivalents outstanding (diluted)

Twenty-Six Weeks Ended

August 1, 2026

August 2, 2025

Weighted average number of common shares outstanding (basic)

Incremental shares from assumed vesting of nonvested restricted stock

Weighted average number of common shares and common stock equivalents outstanding (diluted)

Revolving Credit Facility

In October 2011, the Company entered into a five-year , $ 50 million credit facility with Bank of America.

In October 2011, the Company entered a five-year , $ 50 million credit facility with Bank of America.

The facility was amended in August 2015, May 2020 and April 2021 to modify terms and extend the maturity dates.

4 unchanged sentences

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.

As of May 2, 2026, the Company had no borrowings under the credit facility and $ 2.2 million of letters of credit outstanding.

As of August 1, 2026, the Company had no borrowings under the credit facility and $ 2.2 million of letters of credit outstanding.

Impairment of Assets

If facts and circumstances indicate that a long-lived asset or operating lease right-of-use asset may be impaired, the carrying value is reviewed.

If this review indicates that the carrying value of the asset will not be recovered as determined based on projected undiscounted cash flows related to the asset over its remaining life, the carrying value of the asset is reduced to its estimated fair value.

No impairments were recorded in the twenty-six weeks ended August 1, 2026.

In the twenty-six weeks ended August 2, 2025, non-cash impairment expense related to underperforming stores totaled $ 0.3 million, comprised of $ 0.2 million for leasehold improvements and fixtures and equipment, and $ 0.1 million for operating lease right of use assets.

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.

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.

17 unchanged sentences

Such repurchases may be made in the open market, through block trades or through other negotiated transactions.

Share repurchases were as follows:

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

Thirteen Weeks Ended

Twenty-Six Weeks Ended

August 1, 2026

August 2, 2025

August 1, 2026

August 2, 2025

Total number of shares purchased

1 unchanged sentence

Total investment

At May 2, 2026, $ 40.0 million remained available under the Company’s stock repurchase authorization.

At August 1, 2026, $ 40.0 million remained available under the Company’s stock repurchase authorization.

Recent Accounting Pronouncements

5 unchanged sentences

The adoption of ASU 2023-09 did not have a material impact on the Company’s consolidated financial statements as the requirements impact only annual income tax reporting disclosures in the Notes to the Company’s consolidated financial statements.

Refer to “Note 5.

Income Taxes” for additional information.

Refer to “Note 5 Income Taxes” for additional information.

In November 2024, the FASB issued ASU 2024-03, “Expense Disaggregation Disclosures (Topic 220):

22 unchanged sentences

The Company’s retail operations represent a single operating segment based on the way the Company manages its business.

Operating decisions and resource allocation decisions are made at the Company level in order to maintain a consistent retail store presentation.

Operating decisions and resource allocation decisions are made at the Company level to maintain a consistent retail store presentation.

The Company’s retail stores sell similar products, use similar processes to sell those products and sell their products to similar classes of customers.

In the following table, the Company’s revenue from contracts with customers is disaggregated by Division or product category.

The following table provides the percentage of net sales for each Division within the merchandise assortment:

It also provides the percentage of net sales for each Division within the merchandise assortment.

Thirteen Weeks Ended

Twenty-Six Weeks Ended

Accessories & Beauty

8 unchanged sentences

Thirteen Weeks Ended

Twenty-Six Weeks Ended

August 1, 2026

August 2, 2025

August 1, 2026

August 2, 2025

Operating lease cost

2 unchanged sentences

Total lease cost

Future minimum lease payments as of May 2, 2026 are as follows (in thousands):

Future minimum lease payments as of August 1, 2026 are as follows (in thousands):

Remainder of 2026

2 unchanged sentences

Total present value of lease liabilities

(1) Calculated using the incremental borrowing rate for each lease.

(1) Calculated using the incremental borrowing rate.

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

1 unchanged sentence

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

Thirteen Weeks Ended

Twenty-Six Weeks Ended

August 1, 2026

August 2, 2025

Cash paid for operating leases

3 unchanged sentences

Segment Reporting

The Company is an off-price value retailer of fashion apparel, accessories and home trends primarily for Black families.

The Company is a leading off-price value retailer of fashion apparel, accessories and home trends primarily for Black families.

The retail operations represent a single operating segment based on the way the Company manages its business.

8 unchanged sentences

Thirteen Weeks Ended

Twenty-Six Weeks Ended

August 1, 2026

August 2, 2025

August 1, 2026

August 2, 2025

Cost of sales (exclusive of depreciation shown separately below)

7 unchanged sentences

Other segment expenses (1)

Gain on sale of building

Gain on insurance related to operating activities

Asset impairment

1 unchanged sentence

Interest expense

Income tax expense

Income tax benefit

Net Income (loss)

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

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements