Citi Trends Announces 2018 Holiday Sales Results
15 January 2019 - 8:15AM
Business Wire
Citi Trends, Inc. (NASDAQ: CTRN) today reported unaudited sales
for the first two months of the fourth quarter of fiscal 2018, in
advance of its investor presentation at the ICR Conference on
January 15, 2019.
Holiday Sales – November and December
2018
Total sales in the first two months of the fourth quarter of
2018 decreased 1.9% to $161.9 million compared with $165.1 million
in the same period of 2017. Comparing the nine weeks ended January
5, 2019 with the nine weeks ended January 6, 2018, comparable store
sales decreased 0.7% during the two-month period, following a 4.8%
increase in last year’s fiscal November/December timeframe.
Total sales in the first 11 months of 2018 increased 3.1% to
$730.2 million compared with $708.2 million in the same period of
2017. Comparable store sales increased 1.4% in the first 11 months
of 2018, comparing the 48 weeks ended January 5, 2019 with the 48
weeks ended January 6, 2018.
Bruce Smith, President and Chief Executive Officer, commented,
“Comparable store sales are up 1.4% for the 11 months year-to-date;
however, similar in many respects to what we saw in the third
quarter, fashion misses in November and December caused comparable
store sales to decrease 0.7%. Importantly, we are on track to enter
the spring season in a clean inventory position.”
Based on the November/December sales results and expectations
for the remainder of the fourth quarter of fiscal 2018, the Company
has revised its diluted earnings per share guidance downward and
now expects it to be in a range of $0.54 to $0.58 which, at its
midpoint, would reflect a 47% increase from the $0.38 earned in the
fourth quarter of 2017. Full year fiscal 2018 guidance is in a
range of $1.60 to $1.64 which, at its midpoint, represents a 57%
increase from the $1.03 earned in the full year fiscal 2017.
Capital Return Program
As announced on November 30, 2018, the Company’s Board of
Directors authorized another $25 million share repurchase program.
Since that announcement, the Company has repurchased shares at a
total cost of approximately $12 million, and since the beginning of
2018, the Company has returned approximately $41 million to its
shareholders in the form of share repurchases and dividends.
Long-Term Strategic
Planning
In connection with the Board of Directors’ ongoing review and
update of the Company’s long-term strategic plan, the Company has
updated its investor presentation to include additional information
regarding growth opportunities, merchandising and operational
initiatives and long-term goals. Such information includes, among
other things:
- An update of the Company’s long-term
goals - annual store square footage growth of 4% to 5%, including a
test of the opportunity in Hispanic-dominated markets, and $4 of
earnings per share within the next five years
- Systems initiatives, including store
level merchandise planning and markdown optimization
- Projects to improve logistics and
freight efficiencies
- Return of excess capital to
shareholders
The presentation is being filed with the SEC on Form 8-K today
and will also be available in the Investor Relations section of the
Company’s website. This presentation will be used by management at
the ICR Conference.
About Citi Trends
Citi Trends, Inc. is a value-priced retailer of urban fashion
apparel and accessories for the entire family. The Company operates
558 stores located in 32 states. Citi Trends’ website address is
www.cititrends.com. CTRN-G
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, objectives of
management for future operations, management’s expectations and
beliefs, and our intentions and ability to pay dividends and
complete any share repurchase authorizations, are forward-looking
statements within the meaning of the federal securities laws,
including the Private Securities Litigation Reform Act of 1995,
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, although not all forward-looking statements contain
such language. Statements with respect to earnings or sales
guidance or long-term goals are forward-looking statements.
Investors are cautioned not to place undue reliance on any
forward-looking statements and 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 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 or sales guidance, future performance or management’s
expectations, the Company’s intention to declare and pay dividends,
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, 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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Bruce SmithPresident and Chief Executive Officer(912)
443-2075
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