Citi Trends, Inc. (NASDAQ: CTRN) today reported results for the
first quarter of fiscal 2011.
Financial Highlights – First quarter
ended April 30, 2011
Total sales in the first quarter ended April 30, 2011 increased
4.3% to $189.2 million compared with $181.4 million in the first
quarter ended May 1, 2010. Comparable store sales decreased 6.9%,
after increasing 9.6% in last year’s first quarter. Net income was
$12.1 million, or $0.83 per diluted share, in the first quarter of
2011, compared with $12.4 million, or $0.86 per diluted share, in
last year’s first quarter.
The Company opened 15 stores, relocated or expanded 5 others,
and closed 3 stores in the first quarter of 2011, reaching a total
store count of 473 at the end of the quarter.
Fiscal 2011 Outlook
The Company estimates that 2011 earnings will be in a range of
approximately $1.25 to $1.35 per diluted share. This estimate
assumes that comparable store sales will be down 1% to 2% for the
full year, including a 1% to 2% increase in the last three quarters
of the year. Additionally, in 2011 the Company expects to increase
selling square footage by at least 15% and expects its effective
tax rate 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) 231-2913. A replay of the conference call will be
available until May 25, 2011, by dialing (402) 977-9140 and
entering the passcode, 21520634. 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 May 25, 2011.
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 operated
473 stores located in 27 states as of the end of the first quarter
of fiscal 2011. 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 CONSOLIDATED STATEMENTS OF INCOME
(unaudited) (in thousands, except per share data)
Thirteen Weeks Ended
Thirteen Weeks Ended April 30, 2011 May 1,
2010 (unaudited) (unaudited) Net sales $ 189,168 $ 181,406 Cost
of sales 114,099 109,016 Gross profit
75,069 72,390 Selling, general and administrative expenses 51,072
48,450 Depreciation and amortization 5,584
4,750 Income from operations 18,413 19,190 Interest income
54 55 Interest expense (4 ) (4 ) Income before income
tax expense 18,463 19,241 Income tax expense 6,370
6,792 Net income $ 12,093 $ 12,449
Basic net income per common share $ 0.83 $
0.86 Diluted net income per common share $ 0.83 $
0.86 Weighted average shares used to compute
basic net income per share 14,554 14,458
Weighted average shares used to compute diluted net income
per share 14,567 14,489
CITI TRENDS,
INC. CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited) (in thousands) April 30,
2011 May 1, 2010 (unaudited) (unaudited) Assets: Cash
and cash equivalents $ 76,847 $ 83,390 Short-term investment
securities - 30,025 Inventory 113,380 95,685 Prepaid and other
current assets 15,828 14,131 Property and equipment, net 91,175
64,300 Long-term investment securities 16,824 - Other noncurrent
assets 3,132 4,060 Total assets $
317,186 $ 291,591 Liabilities and
Stockholders' Equity: Accounts payable $ 58,988 $ 61,289 Accrued
liabilities 23,370 19,079 Other current liabilities 6,223 5,886
Noncurrent liabilities 10,778 10,024
Total liabilities 99,359 96,278 Total stockholders' equity
217,827 195,313 Total liabilities and
stockholders' equity $ 317,186 $ 291,591
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