Financial Performance - Total net sales for the thirteen weeks ended November 2, 2024, were 179,520,000 for the same period last year[11]. - The company reported a net loss of 3,863,000 for the same period last year, representing an increase in loss of 85.5%[11]. - Basic net loss per common share was (0.47) for the same quarter last year[11]. - The company experienced a loss from operations of 6,003,000 for the same period last year, indicating a worsening operational performance[11]. - Net loss was 3.9 million in Q3 2023[75]. - Net loss was 15.5 million in the same period in 2023[81]. Assets and Liabilities - Total current assets decreased to 225,099,000 as of February 3, 2024, a decline of 18.7%[8]. - Total liabilities decreased to 361,015,000 as of February 3, 2024, a reduction of 6.7%[8]. - Total stockholders' equity decreased to 157,706,000 as of February 3, 2024, a decline of 17.3%[8]. - Cash and cash equivalents decreased significantly to 79,706,000 as of February 3, 2024, a decline of 51.2%[8]. - The quarter-end cash and cash equivalents balance was 59.7 million at the end of the third quarter last year[82]. Operational Metrics - Inventory levels were reported at 130,432,000 as of February 3, 2024, reflecting a reduction of 2.2%[8]. - The company operated 593 stores across 33 states as of November 2, 2024[19]. - The company's revenue from contracts with customers is disaggregated by major merchandise categories, with Ladies accounting for 27% and Home & Lifestyle for 10% of net sales in Q3 2024[44]. - For the first thirty-nine weeks of 2024, net sales increased by 541.9 million compared to the same period in 2023[76]. Expenses - Cost of sales (exclusive of depreciation) decreased by 107.8 million in Q3 2024, with cost of sales as a percentage of sales decreasing to 60.2%[70]. - Selling, general and administrative expenses increased by 74.7 million in Q3 2024, resulting in an increase in expenses as a percentage of sales to 41.7%[71]. - Cost of sales (exclusive of depreciation) increased by 343.7 million in the first thirty-nine weeks of 2024, with cost of sales as a percentage of sales increasing to 63.4%[77]. - Selling, general and administrative expenses increased by 222.7 million in the first thirty-nine weeks of 2024, with expenses as a percentage of sales rising to 41.1%[78]. Cash Flow and Financing - The company reported a net cash used in operating activities of 32,868,000 for the same period last year, indicating a slight improvement[16]. - The company had no borrowings under its 46.7 million, compared to $52.7 million in the same period of 2023[50]. - The company continues to meet its cash requirements through cash flow from operations and short-term trade credit[93]. Legal and Regulatory - The company is involved in various legal proceedings but does not expect any to have a material adverse effect on its financial condition[103]. - The company has established appropriate reserves for legal proceedings when costs become probable and can be reasonably estimated[103]. - The evaluation of disclosure controls and procedures concluded that they are effective as of November 2, 2024, providing reasonable assurance for timely reporting[98]. - There were no changes in internal control over financial reporting that materially affected the company during the fiscal quarter ended November 2, 2024[100]. Accounting and Standards - The company’s financial statements are prepared in accordance with U.S. GAAP and are unaudited[20]. - The company is currently evaluating the impact of new accounting standards issued by the FASB regarding segment reporting and income tax disclosures[51][52]. - There have been no material changes to the critical accounting policies since the last annual report[96]. - There have been no material changes to the risk factors described in the annual report for the fiscal year ended February 3, 2024[104].
Citi Trends(CTRN) - 2025 Q3 - Quarterly Report