Citi Trends Announces Third Quarter Sales
November 07 2007 - 3:00PM
PR Newswire (US)
Net sales increased 14.2% to $99.5 million for the third quarter of
fiscal 2007; Comparable store sales increased 1.9% on a comparable
store, comparable weeks basis and decreased 2.7% on a fiscal
quarter basis. SAVANNAH, Ga., Nov. 7 /PRNewswire-FirstCall/ -- Citi
Trends, Inc. (NASDAQ:CTRN) today reported unaudited sales results
for the third quarter of fiscal 2007. Total sales in the 13-week
period ended November 3, 2007 increased 14.2% to $99.5 million
compared with $87.1 million in the 13-week period ended October 28,
2006. Comparable store sales increased 1.9% on a comparable store,
comparable weeks basis. Each quarter of fiscal 2007 starts one week
later than the same quarter of 2006, due to the Company's 2006
fiscal year having 53 weeks versus the normal 52 weeks. This timing
shift can have a significant impact on quarterly sales comparisons.
The measurement of sales in comparable stores for comparable weeks
above is based on sales during the 13 weeks ended November 3, 2007
in relation to the thirteen weeks ended November 4, 2006. On a
fiscal quarter basis, comparing the 13 weeks ended November 3, 2007
with the 13 weeks ended October 28, 2006, comparable store sales
decreased 2.7%. Back-to-school sales were very strong during August
due to a shift of sales from July, resulting from later school
openings and tax-free sales holidays this year. However, comparable
store sales on a comparable weeks basis were negative in both
September and October. In light of the reported sales results,
together with a related increase in clearance markdowns, the
Company believes it will recognize a loss for the third quarter of
approximately $(0.06) per diluted share. The Company expects to
report full financial results for its third quarter and an update
to its fiscal 2007 outlook after the market closes on November 26,
2007. As an update to the three operational issues discussed at the
end of the second quarter, the Company noted: (1) Efforts to bring
inventory levels back into line are continuing. Inventory, which
was 45% higher year-over-year at the end of the first quarter of
2007 and 40% higher at the end of the second quarter, was
approximately 25% higher at the end of the third quarter versus
last year's third quarter. (2) As expected, inventory shrinkage was
approximately 2% of sales in the third quarter. Steps continue to
be taken to improve the hiring, training and retention of store
management personnel. (3) An increase in the focus on store
payroll, together with enhanced reporting and controls, has
resulted in an improvement in the management of payroll expense.
About Citi Trends Citi Trends, Inc. is a value-priced retailer of
urban fashion apparel and accessories for the entire family. The
Company currently operates 306 stores located in 18 states in the
Southeast, Mid-Atlantic and Midwest regions and the state of Texas.
Citi Trends' website address is http://www.cititrends.com/. CTRN-E
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 subject to the finalization
of the Company's quarterly financial and accounting procedures, are
not guarantees of future performance or results and are inherently
subject to risks and uncertainties, some of which cannot be
predicted or quantified. Actual results or developments may differ
materially from those included 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. DATASOURCE: Citi Trends, Inc. CONTACT:
Ed Anderson, Chief Executive Officer, +1-912-443-3705, or Bruce
Smith, Chief Financial Officer, +1-912-443-2075, both of Citi
Trends, Inc. Web site: http://www.cititrends.com/
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