Citi Trends, Inc. (CTRN) - Bear of the Day
07 May 2012 - 10:00AM
Zacks
Citi Trends, Inc.'s (CTRN) falling comparable store sales,
coupled with rising cost of goods sold and operating expenses,
battered fourth-quarter 2011 results. The company incurred a
quarterly loss of $0.18 per share, falling drastically from the
year-ago quarter earnings of $0.64 per share. The results, however,
bettered the Zacks Consensus Estimate of a loss of $0.20 per share.
Further, due to uncertainty hovering around sales, given the
global economic unrest, the company decided not to provide any
guidelines unless it finds any near-term catalysts to drive sales.
Intense competition from other retailers, seasonal nature of
business and risks associated with sourcing merchandise from
developing countries may further undermine the company's future
growth prospects.
Currently, we are maintaining a long-term Underperform
recommendation on the stock. Our target price of $10.00 is based on
P/CF (price-to-cash flow) multiple of 8.27x.
CITI TRENDS INC (CTRN): Free Stock Analysis Report
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