Citi Trends Announces Fourth Quarter and Fiscal 2011 Sales
02 February 2012 - 11:00PM
Business Wire
Citi Trends, Inc. (NASDAQ: CTRN) today reported unaudited sales
results for the fourth quarter and fiscal year ended January 28,
2012.
Total sales in the 13-week period ended January 28, 2012
increased 3.7% to $178.4 million compared with $172.0 million in
the 13-week period ended January 29, 2011. Comparable store sales
decreased 6.2% in the fourth quarter. By month, comparable store
sales were down 10.7% in November, down 2.3% in December and down
11.2% in January. Comparable store sales in January were up more
than 3% until the last two days of the month, which were both down
40% due to a delay of one to two weeks for income tax refunds, as
announced by the Internal Revenue Service.
For the year, total sales increased 2.9% to $640.8 million
compared with $622.5 million in fiscal 2010. Comparable store sales
decreased 8.3% for the full year.
The Company stated that, although the year-end closing process
has just begun, based on the negative fourth quarter comparable
store sales results and a significantly lower gross margin, it
expects to report a net loss of approximately $0.40 per diluted
share for the fourth quarter. Included in the estimated quarterly
loss is the adverse impact of non-cash impairment expense totaling
approximately $0.20 per diluted share.
Ed Anderson, Chairman and Chief Executive Officer, commented,
“While we are disappointed to report a loss for the fourth quarter,
there are positives to report. Our sales trends improved
significantly as we moved through the quarter, except for the
impact of the shift in income tax refunds on the last two days of
the quarter. We ended the year with the cleanest, best-balanced
inventory in some time, preparing us well for the important first
quarter. In addition, we continue to be strong financially with an
excellent balance sheet, over $60 million of cash and investments,
no debt and $50 million of unused capacity under our revolving line
of credit.”
Regarding sales, Mr. Anderson stated, “Our company sells urban
fashions, which we believe are whatever our customers tell us they
are. Currently, our customers are telling us that price and fashion
are important, while brands are less important. Many of the urban
brands that have been important to us over the last few years do
not resonate as well with our customers as they once did. In
response to this shift in customer demand, we have taken some
important actions. We have reduced our everyday prices of branded
and fashion (unbranded) merchandise. We have marked down and
reduced our ownership of significant amounts of branded merchandise
to better match inventory levels with sales. We have re-balanced
our inventory and increased our ratio of fashion merchandise to the
total.”
In discussing gross margin for the quarter, Mr. Anderson stated,
“The reduction in gross margin was primarily the result of
markdowns taken to reduce pricing for competitive reasons and to
reduce excess quantities of branded merchandise. As mentioned
before, we feel very good about the levels and freshness of our
inventory as we enter the very important first quarter.”
Looking ahead, Mr. Anderson concluded, “The economic issues that
have impacted our consumer and our performance continue to be a
challenge, but we have taken strong action on the things we can
control. While we have work left to do, I am very optimistic about
what we can deliver in 2012.”
The Company will report complete financial results for its
fourth quarter and fiscal 2011 before the market opens on March 9,
2012. Citi Trends will host a conference call on the same day at
9:00 a.m. ET. The number to call for the live interactive
teleconference is (212) 231-2906. A replay of the conference
call will be available until March 16, 2012, by dialing
(402) 977-9140 and entering the passcode, 21575847.
The live broadcast of Citi Trends' quarterly conference call
will be available online at the Company's website,
www.cititrends.com, on March 9, 2012, beginning at 9:00 a.m.
ET. The online replay will follow shortly after the call and
continue until March 16, 2012.
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 511 stores located in 29 states. 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 anticipated financial
results and earnings guidance are forward-looking statements.
Investors are cautioned that any such forward-looking statements
are subject to the finalization of the Company’s year-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 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. Any forward-looking statements by
the Company, with respect to earnings guidance 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, 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.
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