Citi Trends, Inc. (NASDAQ: CTRN) today reported results for the
third quarter ended November 1, 2008. Financial Highlights � Third
quarter ended November 1, 2008 Total sales in the third quarter
ended November 1, 2008 increased 5.4% to $104.9 million compared
with $99.5 million in the third quarter ended November 3, 2007.
Comparable store sales decreased 4.2% in the third quarter. The net
loss in this year�s third quarter was $687,000 compared with a net
loss of $513,000 in last year�s third quarter. Loss per diluted
share was $0.05 in the third quarter of 2008 compared with a loss
of $0.04 in 2007�s third quarter. The decline in comparable store
sales in this year�s third quarter pressured the Company�s results
in relation to the third quarter of 2007. However, the Company�s
efforts to improve its management of inventory levels led to fewer
markdowns than in last year�s third quarter which, together with an
increased focus on controlling inventory shrinkage, led to a higher
gross margin, substantially offsetting the effect of the comparable
store sales decrease. The Company opened 7 stores, relocated or
expanded 3 others, and closed 1 store in the third quarter of 2008,
reaching a total store count of 341 at the end of the quarter.
Since quarter-end, the Company has opened an additional 14 stores.
Financial Highlights � First three quarters ended November 1, 2008
Total sales in the first three quarters of fiscal 2008 increased
12.8% to $341.6 million compared with $302.9 million in the first
three quarters of fiscal year 2007. Comparable store sales
increased 0.8% in the first three quarters of this year. Net income
was $7.3 million compared with $5.8 million last year. Earnings per
diluted share in the first three quarters of 2008 was $0.51
compared with $0.41 during the same period of 2007, which included
$0.04 of expenses related to a 2007 secondary stock offering.
Fiscal 2008 Outlook The Company�s estimate of fiscal 2008 earnings
is a range of $0.95 to $1.05 per diluted share. This guidance is
based upon an anticipated comparable store sales decrease of 3% to
6% in the fourth quarter. For the year, the Company expects to
increase selling square footage by approximately 15%. The effective
tax rate for 2008 is estimated to approximate 33%. The Company
reminds investors of the complexity of accurately assessing future
results given the difficulty in predicting fashion trends, consumer
preferences and general economic conditions and the impact of other
business variables. See �Forward-Looking Statements� below for more
information regarding these uncertainties. Investor Conference Call
and Webcast Citi Trends will host a conference call today at 5:00
p.m. ET. The number to call for the live interactive teleconference
is (303)�262-2143. A replay of the conference call will be
available until December 1, 2008, by dialing (303)�590-3000 and
entering the passcode, 11113318#. The live broadcast of Citi
Trends' quarterly conference call will be available online at the
Company's website, www.cititrends.com, as well as
http://ir.cititrends.com/events.cfm, beginning today at 5:00 p.m.
ET. The online replay will follow shortly after the call and
continue until December 1, 2008. During the conference call, the
Company may discuss and answer questions concerning business and
financial developments and trends. The Company�s responses to
questions, as well as other matters discussed during the conference
call, may contain or constitute information that has not been
disclosed previously. 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 355 stores
located in 22 states in the Southeast, Mid-Atlantic and Midwest
regions and the state of Texas. Citi Trends� website address is
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
results and 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," "plans," "estimate," "continue,"
"anticipate," "intend," "expect" and similar expressions, as they
relate to Citi Trends, are intended to identify forward-looking
statements. Statements with respect to earnings guidance are
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 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. � CITI TRENDS, INC. CONDENSED
STATEMENTS OF OPERATIONS (unaudited) (in thousands, except per
share data) � � � Thirteen Weeks Ended Thirteen Weeks Ended
November 1, 2008 November 3, 2007 (unaudited) (unaudited) Net sales
$ 104,948 $ 99,542 Cost of sales � 66,208 � � 65,026 � Gross profit
38,740 34,516 Selling, general and administrative expenses 36,482
32,455 Depreciation and amortization � 4,134 � � 3,265 � Loss from
operations (1,876 ) (1,204 ) Interest income 790 521 Interest
expense � (94 ) � (107 ) Loss before income tax benefit (1,180 )
(790 ) Income tax benefit � (493 ) � (277 ) Net loss $ (687 ) $
(513 ) � Basic net loss per common share $ (0.05 ) $ (0.04 )
Diluted net loss per common share $ (0.05 ) $ (0.04 ) � Weighted
average number of shares outstanding Basic 14,141 14,023 Diluted
14,141 14,023 � CITI TRENDS, INC. CONDENSED STATEMENTS OF
OPERATIONS (unaudited) (in thousands, except per share data) � � �
Thirty-Nine Weeks Ended Thirty-Nine Weeks Ended November 1, 2008
November 3, 2007 (unaudited) (unaudited) Net sales $ 341,599 $
302,944 Cost of sales � 211,172 � � 191,638 � Gross profit 130,427
111,306 Selling, general and administrative expenses 109,600 94,578
Depreciation and amortization � 11,915 � � 9,095 � Income from
operations 8,912 7,633 Interest income 2,215 1,703 Interest expense
� (256 ) � (372 ) Income before provision for income taxes 10,871
8,964 Provision for income taxes � 3,544 � � 3,128 � Net income $
7,327 � $ 5,836 � � Basic net income per common share $ 0.52 $ 0.42
Diluted net income per common share $ 0.51 $ 0.41 � Weighted
average number of shares outstanding Basic 14,095 13,917 Diluted
14,262 14,235 � � CITI TRENDS, INC. CONDENSED BALANCE SHEETS
(unaudited) (in thousands) � November 1, 2008 November 3, 2007
(unaudited) (unaudited) Assets: Cash and cash equivalents $ 12,415
$ 4,398 Investment securities - current --- 43,721 Inventory 89,822
93,886 Other current assets 12,690 9,288 Property and equipment,
net 58,659 43,895 Investment securities - noncurrent 41,785 ---
Other noncurrent assets � 7,154 � 5,176 Total assets $ 222,525 $
200,364 � Liabilities and Stockholders' Equity: Accounts payable $
46,366 $ 44,926 Accrued liabilities 17,516 14,290 Other current
liabilities 4,281 3,921 Noncurrent liabilities � 7,673 � 8,239
Total liabilities 75,836 71,376 � Total stockholders' equity �
146,689 � 128,988 Total liabilities and stockholders' equity $
222,525 $ 200,364
Citi Trends (NASDAQ:CTRN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Citi Trends (NASDAQ:CTRN)
Historical Stock Chart
From Jul 2023 to Jul 2024