Citi Trends Announces Fourth Quarter and Fiscal 2013 Sales
12 February 2014 - 10:30PM
Business Wire
Citi Trends, Inc. (NASDAQ: CTRN) today reported unaudited sales
results for the fourth quarter and fiscal year ended February 1,
2014.
The Company’s 2013 fiscal year contained 52 weeks, while the
2012 fiscal year contained 53 weeks. Accordingly, the comparison of
total sales between fiscal years is affected by the extra week of
sales at the beginning of fiscal 2012. Total sales in fiscal 2013
decreased 5.0% to $622.2 million compared with $654.7 million in
fiscal 2012, with the extra week at the beginning of last year
contributing approximately $21 million. For comparable store sales,
the Company is reporting on a comparable weeks basis (i.e. the 52
weeks ended February 1, 2014 compared to the 52 weeks ended
February 2, 2013). Comparable store sales on a comparable weeks
basis decreased 1.6% for the year.
The Company’s 2013 fiscal fourth quarter contained 13 weeks,
while the 2012 fiscal fourth quarter contained 14 weeks.
Accordingly, the comparison of total sales between quarters is
affected by an extra week of sales at the beginning of the fourth
quarter of fiscal 2012. Total sales in fiscal 2013’s fourth quarter
decreased 10.5% to $157.2 million compared with $175.7 million in
last year’s fourth quarter, with the extra week at the beginning of
fiscal 2012’s fourth quarter contributing approximately $12 million
to total sales. For comparable store sales, the Company is
reporting on a comparable weeks basis (i.e. the 13 weeks ended
February 1, 2014 compared to the 13 weeks ended February 2, 2013).
Comparable store sales on a comparable weeks basis decreased 3.5%
for the quarter. By month, comparable store sales on a comparable
weeks basis increased 0.4% in November and decreased 4.6% and 6.5%
in December and January, respectively.
Ed Anderson, Chairman and Chief Executive Officer, commented,
“We are disappointed with the 3.5% comparable store sales decrease
in the fourth quarter. We had expected more sales due to the
positive momentum from the previous two quarters as well as a
slight sales increase in November.
The hanging apparel businesses - ladies, men’s and kids - all
decreased in the fourth quarter. Our strategy for cold weather
product, particularly in ladies apparel, proved to be too
conservative and we missed sales as a result. In addition, winter
storms caused a large part of the January sales decrease.
There were several positives in the quarter. The accessories,
including footwear, and home businesses continued to deliver sales
increases. Cost of sales as a percentage of sales improved
approximately 400 basis points due to better inventory management,
which resulted in fewer clearance markdowns. Also, despite sales
being below expectations, we ended the quarter with 10% less
inventory than a year ago.
We believe we are positioned for a successful Spring selling
season, and we continue to feel very good about our progress at
Citi Trends.”
Investor Conference Call and
Webcast
The Company will report complete financial results for its
fourth quarter and fiscal 2013 before the market opens on March 14,
2014. 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) 231-2908. A replay of the conference
call will be available until March 21, 2014, by dialing
(402) 977-9140 and entering the passcode, 21705725.
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,
on March 14, 2014 beginning at 9:00 a.m. ET. The online replay will
follow shortly after the call and will be available for replay for
one year.
During the conference call, the Company may discuss and answer
questions concerning business and financial developments and trends
after quarter-end. 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 operates
505 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 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.
Citi Trends, Inc.Bruce Smith, 912-443-2075Chief Financial
OfficerorEd Anderson, 912-443-3705Chairman & Chief Executive
Officer
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