Citi Trends Announces 2023 Holiday Sales Results for Quarter-to-date Through January 6, 2024
08 Gennaio 2024 - 1:15PM
Business Wire
Total Holiday Sales for the quarter-to-date period ending
January 6, 2024 of $179.5 million, at the high end of
expectations
Comp sales decreased -0.3% compared to Fiscal 2022, a
significant trend improvement
Reaffirms 2023 guidance including expected year end cash
balance of $80 million to $90 million
Citi Trends, Inc. (NASDAQ: CTRN), a leading specialty value
retailer of apparel, accessories and home trends for way less spend
primarily for African American and multicultural families in the
United States, today announced results for its holiday selling
period.
Total sales for the quarter-to-date period ending January 6,
2024 of $179.5 million compared to $181.9 million in the same
period in 2022. Comparable store sales for the quarter-to-date
period ending January 6, 2024 were down -0.3% versus the same
period in 2022.
David Makuen, Chief Executive Officer, said, "I am pleased to
report that our holiday sales were at the high end of our
expectations as our Ready. Set. GIFT! Campaign resonated well with
the families we serve. Our nearly flat comp was driven by strategic
inventory investments while continuing to generate strong gross
margin. Importantly, our holiday sales results represent a
significant trend change to the prior quarter with an improvement
in comp sales performance of approximately 600 basis points."
Mr. Makuen continued, "I would like to thank the entire Citi
Crew for their continued hard work and dedication, especially our
store teams who once again amazed our loyal customers throughout
the holiday season. As we look forward, we are excited about
setting up our spring selling season with a potent mix of basics,
fashion and trend to drive comp store productivity. Additionally,
we are moving full steam ahead with leveraging our new ERP system,
incorporating marketing into the mix and beginning some exciting
remodels across the fleet. We look to the new fiscal year with
optimism as we continue to advance our strategic initiatives while
prudently managing what is in our control."
Guidance
The Company is reaffirming its outlook for fiscal 2023 as
follows:
- Full year total sales are expected to be down mid-single digits
as compared to fiscal 2022
- Full year gross margin is expected to be in the high
thirties
- Full year EBITDA* is expected to be in the range of $1 million
to $7 million
- Full year capex is expected to be in the range of $17 million
to $20 million
- Year end cash balance is expected to be in the range of $80
million to $90 million
The Company’s implied fourth quarter total sales are expected to
be approximately flat to up low-single digits vs. Q4 2022 with comp
store sales now expected to be in the range of down low-single
digits to flat to last year and Q4 EBITDA in the range of $9
million to $15 million.
About Citi Trends
Citi Trends, Inc. is a leading specialty value retailer of
apparel, accessories and home trends for way less spend primarily
for African American and multicultural families in the United
States. The Company operates 603 stores located in 33 states. For
more information, visit www.cititrends.com or your local store.
*Non-GAAP Financial
Measures
The Company is unable to provide a full reconciliation of the
forward-looking non-GAAP financial measure used in 2023 guidance
without unreasonable effort because it is not possible to predict
certain of its adjustment items with a reasonable degree of
certainty. This information is dependent upon future events and may
be outside of the Company’s control and its unavailability could
have a significant impact on its financial results.
Forward-Looking
Statements
All statements other than historical facts contained in this
news release, including statements regarding the Company’s future
financial results and position, business policy and plans,
objectives and expectations of management for future operations and
capital allocation expectations, are forward-looking statements
that are subject to material risks and uncertainties. The words
"believe," "may," "could," "plans," "estimate," “expects,”
"continue," "anticipate," "intend," "expect," “upcoming,” “trend”
and similar expressions, as they relate to the Company, are
intended to identify forward-looking statements, although not all
forward-looking statements contain such language. Statements with
respect to earnings, sales or new store guidance are
forward-looking statements. Investors are cautioned that any such
forward-looking statements are subject to the finalization of the
Company’s quarter-end 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 our Annual
Reports and Quarterly Reports on Forms 10-K and 10-Q, respectively,
and any amendments thereto, filed with the Securities and Exchange
Commission. These risks and uncertainties include, but are not
limited to, uncertainties relating to general economic conditions,
including inflation, energy and fuel costs, unemployment levels,
and any deterioration whether caused by acts of war, terrorism,
political or social unrest (including any resulting store closures,
damage or loss of inventory) or other factors; changes in market
interest rates and market levels of wages; natural disasters such
as hurricanes; uncertainty and economic impact of pandemics,
epidemics or other public health emergencies such as the ongoing
COVID-19 pandemic; transportation and distribution delays or
interruptions; changes in freight rates; the Company’s ability to
attract and retain workers; the Company’s ability to negotiate
effectively the cost and purchase of merchandise inventory risks
due to shifts in market demand; the Company’s ability to gauge
fashion trends and changing consumer preferences; changes in
consumer confidence and consumer spending patterns; competition
within the industry; competition in our markets; the duration and
extent of any economic stimulus programs; changes in product mix;
interruptions in suppliers’ businesses; the ongoing assessment and
impact of the cyber disruption we identified on January 14, 2023,
including legal, reputational, financial and contractual risks
resulting from the disruption, and other risks related to
cybersecurity, data privacy and intellectual property; temporary
changes in demand due to weather patterns; seasonality of the
Company’s business; changes in market interest rates and market
levels of wages; the results of pending or threatened litigation;
delays associated with building, remodeling, opening and operating
new stores; and delays associated with building and opening or
expanding new or existing distribution centers. Any forward-looking
statements by the Company, with respect to guidance, the repurchase
of shares pursuant to a share repurchase program, or otherwise, are
intended to speak only as of the date such statements are made.
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, the Company 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20240108244059/en/
Tom Filandro/Rachel Schacter ICR, Inc.
CitiTrendsIR@icrinc.com
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