Second Quarter Net Sales Increased 38.2% to $59.4 Million; Second
Quarter Comparable Store Sales Increased 11.5%; Second Quarter
Diluted Earnings per Share Increased to $0.03; Fiscal Year 2005 EPS
Guidance Range of $0.80 - $0.83 SAVANNAH, Ga., Aug. 24
/PRNewswire-FirstCall/ -- Citi Trends, Inc. (NASDAQ:CTRN) today
reported results for the thirteen and twenty-six weeks ended July
30, 2005. Quarter Ended July 30, 2005 Total net sales for the
thirteen weeks ended July 30, 2005 increased by 38.2% to $59.4
million from $43.0 million reported in the prior year. Comparable
store sales increased 11.5% for the thirteen weeks ended July 30,
2005 compared to 0.3% in the thirteen weeks ended July 31, 2004.
Total net sales for the twenty-six weeks ended July 30, 2005
increased by 35.1% to $123.1 million from $91.1 million reported in
the prior year. Comparable store sales increased 9.0% for the
twenty-six weeks ended July 30, 2005 compared to 2.0% in the
twenty-six weeks ended July 31, 2004. Relocated stores and expanded
stores are included in the comparable store sales results. The
Company reported net income for the thirteen weeks ended July 30,
2005 of approximately $381,000, or $0.03 per diluted share,
compared to net loss of approximately $41,000 or $0.00 per diluted
share in the thirteen weeks ended July 31, 2004. The Company
reported net income for the twenty-six weeks ended July 30, 2005 of
$3.6 million, or $0.30 per diluted share, compared to net income of
$2.2 million or $0.20 per diluted share in the twenty-six weeks
ended July 31, 2004. The Company paid a one-time fee in the second
quarter of $1.2 million pre- tax, or $0.05 per diluted share, to
Hampshire Equity Partners to terminate its management consulting
agreement with the Company, as previously disclosed by the Company
in the prospectus for its initial public offering. The fee is
included in the net income results reported above. For fiscal 2005,
the Company plan was to open 40 new stores. In the twenty-six weeks
ended July 30, 2005, the Company opened 21 new stores and is on
plan for store openings for the remainder of the year. Fiscal 2005
EPS Outlook The Company anticipates full year diluted earnings per
share of between $0.80 and $0.83 based on 13.4 million diluted
shares outstanding. The Company reminds investors of the complexity
of accurately assessing future growth given the difficulty in
predicting fashion trends, consumer preferences and general
economic conditions and the impact of other business variables. A
one-hour conference call will be held on August 25, 2005 at 10:00
am EST to discuss second quarter results and answer questions. To
access the conference call, listeners should dial 800-218-8862.
International callers should dial 303-262-2211. For those unable to
listen at that time, a replay of the call will be available through
September 1, 2005 at 800-405-2236 for domestic callers or
303-590-3000 for international callers. The pass code for the
replay is 11037385. The call will be broadcast live over the
Internet via http://ir.cititrends.com/medialist.cfm. For those who
are unavailable to listen to the live broadcast, a replay will be
available shortly after the call on the above web site for 60 days.
Citi Trends, Inc. is a value-priced retailer of urban fashion
apparel and accessories for the entire family. The Company
currently operates 221 stores located in 12 states in the South,
Southeast and Mid-Atlantic region, and our website address is
http://www.cititrends.com/. Forward-Looking Statements All
statements other than historical facts contained in this news
release, including statements regarding our future financial
position, business policy and plans and objectives of management
for future operations, are forward- looking statements that are
subject to material risks and uncertainties. The words "believe,"
"may," "could," "estimate," "continue," "anticipate," "intend,"
"expect" and similar expressions, as they relate to Citi Trends,
are intended to identify forward-looking statements. Investors are
cautioned that any such forward-looking statements are not
guarantees of future performance or results and are inherently
subject to risks and uncertainties, some of which cannot be
predicted or quantified, and that actual results or developments
may differ materially from those in the forward-looking statements
as a result of various factors which are discussed in Citi Trends,
Inc. filings with the Securities and Exchange Commission. These
risks and uncertainties include, but are not limited to,
uncertainties relating to economic conditions, growth and expansion
risks, consumer spending patterns, competition within the industry,
competition in our markets and the ability to anticipate and
respond to fashion trends. Except as required by applicable law,
including the securities laws of the United States and the rules
and regulations of the Securities and Exchange Commission, Citi
Trends does not undertake to publicly update any forward-looking
statements in this news release or with respect to matters
described herein, whether as a result of any new information,
future events or otherwise. CTRN - E CITI TRENDS, INC. CONDENSED
STATEMENT OF INCOME (unaudited) in $000's, except share and per
share data) Thirteen Weeks Ended July 30, 2005 July 31, 2004
(unaudited) (unaudited) Net sales 59,449 43,011 Gross profit 21,767
14,916 Selling, general and administrative expenses 21,271 14,806
Income from operations 496 110 Net income 381 (41) Net income per
share, basic 0.03 0.00 Net income per share, diluted 0.03 0.00
Weighted average shares used to compute net income per share, basic
11,925,307 9,310,600 Weighted average shares used to compute net
income per share, diluted 13,587,400 10,952,838 CITI TRENDS, INC.
CONDENSED STATEMENT OF INCOME (unaudited) in $000's, except share
and per share data) Twenty-six Weeks Ended July 30, 2005 July 31,
2004 (unaudited) (unaudited) Net sales 123,066 91,080 Gross profit
46,900 33,950 Selling, general and administrative expenses 41,029
30,026 Income from operations 5,871 3,924 Net income 3,646 2,198
Net income per share, basic 0.34 0.24 Net income per share, diluted
0.30 0.20 Weighted average shares used to compute net income per
share, basic 10,610,154 9,308,000 Weighted average shares used to
compute net income per share, diluted 12,230,180 10,928,216 CITI
TRENDS, INC. CONDENSED BALANCE SHEETS (in $000's) July 30, 2005
July 31, 2004 (unaudited) (unaudited) Assets Cash and cash
equivalents 30,760 5,894 Marketable securities 12,013 -- Inventory
50,064 36,936 Other assets 7,279 5,715 Property and equipment, net
20,129 15,276 Total assets 120,245 63,821 Liabilities and
stockholders' equity Borrowings under line of credit -- 5,660
Accounts payable and accrued liabilities 43,713 29,661 Other
liabilities 7,414 9,769 Total stockholders' equity 69,118 18,731
Total liabilities and stockholders' equity 120,245 63,821
DATASOURCE: Citi Trends, Inc. CONTACT: Tom Stoltz, Chief Financial
Officer, +1-912-443-2075, , or Ed Anderson, Chief Executive
Officer, +1-912-443-3075, , both of Citi Trends, Inc.; or General:
Marilynn Meek, +1-212-827-3773, or Analysts: Susan Garland,
+1-212-827-3775, both of Financial Relations Board for Citi Trends,
Inc. Web site: http://www.cititrends.com/
http://ir.cititrends.com/medialist.cfm
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