CTRN Citi Trends Inc

Citi Trends, Inc. (NASDAQ: CTRN) today reported results for the third quarter of fiscal 2010.

Financial Highlights – Third quarter ended October 30, 2010

Total sales in the third quarter ended October 30, 2010 increased 10.0% to $140.0 million compared with $127.4 million in the third quarter ended October 31, 2009. Comparable store sales decreased 4.2% in the third quarter. A net loss of $394,000 was recognized in this year’s third quarter compared with net income of $606,000 in the third quarter of 2009. Loss per diluted share was $(0.03) in the third quarter of 2010 compared with earnings per diluted share of $0.04 in the third quarter of 2009.

Store activity in the third quarter of 2010 included 33 new openings and 5 relocations/expansions, resulting in a total store count of 458 at the end of the quarter.

Financial Highlights – First three quarters ended October 30, 2010

Total sales in the first three quarters of fiscal 2010 increased 17.9% to $450.5 million compared with $382.1 million in the same period of fiscal 2009. Comparable store sales increased 2.2% in the first three quarters of this year. Net income increased 35.7% to $11.5 million compared with $8.5 million in last year’s first three quarters. Earnings per diluted share increased to $0.79 in the first three quarters of 2010 compared with $0.58 in the same period of 2009.

Fiscal 2010 Outlook

The Company estimates that 2010 earnings will be in a range of $1.50 to $1.60 per diluted share which includes an anticipated comparable store sales decrease of 1% to 4% in the fourth quarter of 2010. The effective tax rate for 2010 is expected to be in a range of 34% to 35%.

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 9:00 a.m. ET. The number to call for the live interactive teleconference is (212) 231-2938. A replay of the conference call will be available until November 29, 2010, by dialing (402) 977-9140 and entering the passcode, 21463760. 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 9:00 a.m. ET. The online replay will follow shortly after the call and continue through November 29, 2010.

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. After opening 2 stores thus far in November 2010, the Company currently operates 460 stores located in 27 states. Citi Trends’ website address is www.cititrends.com.

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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 October 30, 2010 October 31, 2009 (unaudited) (unaudited) Net sales $ 140,037 $ 127,356 Cost of sales   88,356     79,720   Gross profit 51,681 47,636 Selling, general and administrative expenses 47,243 41,989 Depreciation and amortization   5,324     4,851   (Loss) income from operations (886 ) 796 Interest income 41 85 Interest expense (8 ) (17 ) Unrealized gain on investment securities   -     57   (Loss) income before income tax (benefit) expense (853 ) 921 Income tax (benefit) expense   (459 )   315   Net (loss) income $ (394 ) $ 606     Basic net (loss) income per common share $ (0.03 ) $ 0.04   Diluted net (loss) income per common share $ (0.03 ) $ 0.04     Net (loss) income attributable to common shares (1): Basic $ (394 ) $ 593   Diluted $ (394 ) $ 593     Weighted average shares used to compute basic net (loss) income per share   14,519     14,370   Weighted average shares used to compute diluted net (loss) income per share   14,519     14,409         Thirty-Nine Weeks Ended Thirty-Nine Weeks Ended October 30, 2010 October 31, 2009 (unaudited) (unaudited) Net sales $ 450,485 $ 382,058 Cost of sales   278,134     234,640   Gross profit 172,351 147,418 Selling, general and administrative expenses 140,119 121,116 Depreciation and amortization   14,843     13,679   Income from operations 17,389 12,623 Interest income 140 329 Interest expense   (17 )   (86 ) Income before income tax expense 17,512 12,866 Income tax expense   6,024     4,400   Net income $ 11,488   $ 8,466     Basic net income per common share $ 0.79   $ 0.58   Diluted net income per common share $ 0.79   $ 0.58     Net income attributable to common shares (1): Basic $ 11,488   $ 8,289   Diluted $ 11,488   $ 8,289     Weighted average shares used to compute basic net income per share   14,497     14,351   Weighted average shares used to compute diluted net income per share   14,518     14,383     (1) Net of income allocated to nonvested restricted stockholders   CITI TRENDS, INC. CONDENSED BALANCE SHEETS (unaudited) (in thousands)       October 30, 2010     October 31, 2009 (unaudited) (unaudited) Assets: Cash and cash equivalents $ 69,632 $ 32,487 Short-term investment securities 4,752 42,225 Inventory 115,273 105,314 Other current assets 21,995 16,420 Property and equipment, net 76,879 62,422 Other noncurrent assets   4,470   4,282 Total assets $ 293,001 $ 263,150   Liabilities and Stockholders' Equity: Accounts payable $ 61,355 $ 60,762 Accrued liabilities 22,111 20,263 Other current liabilities 3,200 3,504 Noncurrent liabilities   10,422   9,719 Total liabilities 97,088 94,248   Total stockholders' equity   195,913   168,902 Total liabilities and stockholders' equity $ 293,001 $ 263,150