Citi Trends, Inc. (NASDAQ: CTRN) today reported record first
quarter sales and earnings.
Financial Highlights � First
quarter ended May 2, 2009
Total sales in the first quarter ended May 2, 2009 increased
18.3% to $143.1 million compared with $121.0 million in the first
quarter ended May 3, 2008. Comparable store sales increased 7.4% in
the first quarter. Net income was $7.9 million compared with $5.2
million in last year�s first quarter. Earnings per diluted share
increased to $0.54 in the first quarter of 2009 compared with $0.36
in the first quarter of 2008.
Earnings in the first quarter of 2009 benefited from the 7.4%
increase in comparable store sales, together with a higher gross
margin that was a result of lower freight costs as a percentage of
sales, continued efforts to reduce inventory shrinkage, a slightly
higher initial merchandise mark-up, and lower markdowns due to
tight inventory control.
The Company opened 8 stores and relocated or expanded 4 others
in the first quarter of 2009, reaching a total store count of 365
at the end of the quarter.
Fiscal 2009
Outlook
The Company is raising its 2009 earnings estimate to
approximately $1.33 per diluted share which includes an anticipated
2009 comparable store sales increase of approximately 3%. For the
year, the Company expects to increase selling square footage by at
least 15%. The effective tax rate for 2009 is estimated to be in a
range of 34% to 35%. The earnings estimate includes the first
quarter impact of an unrealized loss of $728,000, or $0.03 per
diluted share, related to the valuation of the Company�s
investments in auction rate securities. In addition, the estimate
reflects a negative impact of $0.03 per diluted share associated
with the adoption of FASB Staff Position EITF 03-6-1 as it relates
to the allocation of earnings per share to nonvested shares of
restricted stock.
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
(212)�231-2900. A replay of the conference call will be available
until May 27, 2009, by dialing (402)�977-9140 and entering the
passcode, 21422427#. 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 through May 27, 2009.
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 365 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
INCOME(unaudited)(in thousands, except per share
data)
� �
Thirteen Weeks Ended Thirteen Weeks Ended May
2, 2009 May 3, 2008 (unaudited) (unaudited) Net sales $
143,097 $ 120,996 Cost of sales � 85,909 � � 74,233 � Gross profit
57,188 46,763 Selling, general and administrative expenses 40,133
36,241 Depreciation and amortization � 4,373 � � 3,703 � Income
from operations 12,682 6,819 Interest income 139 868 Interest
expense (41 ) (87 ) Unrealized loss on auction rate securities �
(728 ) � - � Income before income tax expense 12,052 7,600 Income
tax expense � 4,123 � � 2,432 � Net income $ 7,929 � $ 5,168 � �
Basic net income per common share $ 0.54 $ 0.36 Diluted net income
per common share $ 0.54 $ 0.36 � � Net income attributable to
common stockholders (1) $ 7,780 � $ 5,127 � � Weighted average
shares used to compute basic net income per share 14,318 14,048
Weighted average shares used to compute diluted net income per
share 14,339 14,217 � (1) Net of income allocated to nonvested
restricted stockholders � �
CITI TRENDS,
INC.CONDENSED BALANCE SHEETS(unaudited)(in
thousands)
�
May 2, 2009 May 3, 2008 (unaudited) (unaudited)
Assets: Cash and cash equivalents $ 44,672 $ 4,697 Inventory 84,613
83,258 Other current assets 12,227 10,434 Property and equipment,
net 58,413 55,555 Investment securities - noncurrent 43,097 53,720
Other noncurrent assets � 4,768 � � 5,898 � Total assets $ 247,790
� $ 213,562 � � Liabilities and Stockholders' Equity: Accounts
payable $ 47,899 $ 42,221 Accrued liabilities 17,339 14,249 Other
current liabilities 6,568 6,279 Noncurrent liabilities � 9,049 � �
8,156 � Total liabilities 80,855 70,905 � Total stockholders'
equity � 166,935 � � 142,657 � Total liabilities and stockholders'
equity $ 247,790 � $ 213,562 �
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