Citi Trends(CTRN) - 2025 Q4 - Annual Report

Financial Performance - Total sales for fiscal 2024 were $753.1 million, representing a 0.7% increase from$ 747.9 million in fiscal 2023, driven by a 3.4% increase in comparable store sales [162]. - The net loss for fiscal 2024 was $43.2 million, compared to a net loss of$ 12.0 million in fiscal 2023, influenced by a $16.5 million valuation allowance on deferred tax assets and strategic investments [168]. - Selling, general and administrative expenses increased by$ 15.7 million, or 5.5%, to $300.2 million in fiscal 2024, with SG&A as a percentage of sales rising to 39.9% [164]. - Cost of sales increased by$ 8.2 million, or 1.8%, to $471.0 million in fiscal 2024, with cost of sales as a percentage of net sales at 62.5% [163]. Store Operations - The company operated 591 stores at the end of fiscal 2024, having opened 1 new store, remodeled 35 stores, and closed 12 stores during the year [151]. - The company expects to accelerate square footage expansion in the range of 6% to 10% annually over time, focusing on maximizing productivity in existing stores [154]. Cash Flow and Investments - Cash used in operating activities was$ 3.8 million in fiscal 2024, a decrease from $9.6 million in fiscal 2023, with significant sources including a$ 7.8 million reduction in inventory [175]. - Cash used in investing activities was $10.1 million in fiscal 2024, down from$ 13.4 million in fiscal 2023, entirely for purchases of property and equipment [177]. - Cash used in financing activities was $4.7 million in fiscal 2024, including$ 3.8 million for share repurchases [178]. - In fiscal 2024, the company returned $3.8 million to shareholders through share repurchases [173]. Inventory Management - Inventory at the end of fiscal 2024 was$ 122.6 million, a decrease from $130.4 million in fiscal 2023, due to a strategic inventory reset [171]. - Inventory shrink as a percentage of sales was 1.7% in fiscal 2024, up from 1.0% in fiscal 2023 and 0.7% in fiscal 2022 [181]. - The allowance for inventory shrink was$ 5.2 million as of February 1, 2025, compared to $3.9 million as of February 3, 2024 [181]. Financial Position - The company ended fiscal 2024 with cash of$ 61.1 million and no debt, down from $79.7 million at the end of the previous year [169]. - The company has a revolving credit facility with a$ 75 million credit commitment and no borrowings as of the end of fiscal 2024 [174]. - As of February 1, 2025, the company's contractual commitments for operating leases totaled $289.3 million, with$ 60.7 million due within 12 months [179]. Accounting and Compliance - The company is evaluating the impact of new accounting standards on its consolidated financial statements, including ASU 2023-09 and ASU 2024-03 [182][183]. - The company sources all products in U.S. Dollars and is not directly subject to foreign currency exchange rate fluctuations [184].