Third quarter comparable store sales
expected to increase approximately 5%, exceeding prior
expectations
Repurchased approximately 350,000 shares
under reinstated $30 million share repurchase program
Opened six new Citi Trends stores bringing
the fleet total to 585
Appoints Pamela Edwards as Chief Financial
Officer effective January 4, 2021
Citi Trends, Inc. (NASDAQ:
CTRN), the leading value retailer of apparel, accessories and home
trends for way less spend primarily for African American families
in the United States, today provided a third quarter-to-date
business update and announced the appointment of Pamela Edwards as
Chief Financial Officer.
Third Quarter Business
Update
- Comparable store sales in the third quarter ending October 31,
2020 are expected to increase approximately 5%, exceeding prior
expectations of comparable store sales in the range of negative
mid-single digits to flat.
- The Company has repurchased approximately 350,000 shares of its
common stock during the third quarter under its recently reinstated
and previously authorized $30 million share repurchase program. The
repurchase of the shares was funded from cash on hand.
- Successfully opened six new Citi Trends stores bringing the
fleet total to 585; reopened the rebuilt Minneapolis location ahead
of schedule.
Chief Executive Officer
Comments
David Makuen, Chief Executive
Officer, said, “As the third quarter comes to a close, we are
pleased to be on track to deliver a positive mid-single digit
comparable store sales increase, exceeding our prior expectations.
Importantly, we continue to achieve substantial growth in gross
margin and operating margin above prior year levels driven by
healthy full price selling, well managed inventories and rigorous
control of expenses. These strong results demonstrate the strength
of our brand, our on-trend assortment and outsized growth in home,
all of which continue to resonate with our loyal and expanding
customer base.”
Makuen continued, “We are very
proud of our team’s ability to adapt and continue to safely serve
our customers in what remains a fluid operating environment. We
enter the holiday selling season well positioned to deliver a
compelling assortment of fresh and relevant merchandise with an
emphasis on extreme value gifts ensuring our customers’ families
will have a joyful holiday season. Finally, we successfully opened
six new Citi Trends stores expanding our reach into southeast
Texas, while also returning to meet the needs of our loyal
customers in the diverse and important Minneapolis
community.”
Appointment of Chief Financial
Officer
The Company also announced
today that it has appointed Pamela Edwards as Chief Financial
Officer, effective January 4, 2021. Ms. Edwards brings to the
Company extensive experience in finance, strategy and operations
leadership across a variety of retail brands and sectors. Most
recently, Ms. Edwards spent fifteen years at L Brands Inc. as the
Chief Financial Officer for the Mast Global division from 2017 to
2020, as the Chief Financial Officer of Victoria Secret division
from 2007 to 2017, and as the Chief Financial Officer for the
Express division from 2005 to 2007. Prior to L Brands Inc., Ms.
Edwards worked in various business and financial planning roles at
Gap/Old Navy, Sears Roebuck, and Kraft Foods. Ms. Edwards has an
MBA from the Fuqua School of Business at Duke University and a
Bachelor of Science in Finance from Florida A&M University. Ms.
Edwards currently serves on the Board of Neiman Marcus Group, LLC
as Audit Chair.
David Makuen, CEO, commented,
“We are very excited to welcome Pam as Chief Financial Officer of
Citi Trends to lead all financial aspects of our business. Pam
brings with her a wealth of financial, strategy and retail
experience and she is a true leader with a proven track record of
success. I am confident she is the right leader for the business
and we look forward to benefiting from her experience and
expertise.”
Ms. Edwards commented, “I am
excited to be joining the Citi Trends team and I admire the
uniqueness of Citi Trends' value proposition, servicing the
apparel, accessories and home goods needs of African-American
consumers. I look forward to working with the entire team to
further enhance the Company’s financial and operational
performance.”
About Citi Trends
Citi Trends, Inc. is a
value-priced retailer of fashion apparel, accessories and home
goods for the entire family. The Company operates 585 stores
located in 33 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 the Company’s future financial results and
position, business policy and plans, objectives of management for
future operations and our intentions and ability to pay dividends
and complete any share repurchase authorizations, are
forward-looking statements that are subject to material risks and
uncertainties. The words "believe," "may," "could," "plans,"
"estimate," "continue," "anticipate," "intend," "expect,"
“upcoming,” “trend” and similar expressions, as they relate to the
Company, are intended to identify forward-looking statements,
although not all forward-looking statements contain such language.
Statements with respect to earnings, sales or new store guidance
are forward-looking statements. Investors are cautioned 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 our Annual
Reports and Quarterly Reports on Forms 10-K and 10-Q, respectively,
and any amendments thereto, filed with the Securities and Exchange
Commission. These risks and uncertainties include, but are not
limited to, uncertainties relating to general economic conditions,
including any deterioration whether caused by acts of war,
terrorism, political or social unrest (including any resulting
store closures, damage or loss of inventory), the ongoing COVID-19
(coronavirus) pandemic and associated containment and remediation
efforts, the potential negative impacts of COVID-19 on the global
economy and foreign sourcing, the impacts of COVID-19 on the
Company's financial condition, business operation and liquidity,
including the re-closure of any or all of the Company’s retail
stores and distribution centers, 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 guidance, 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, the
Company 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201028006000/en/
Tom Filandro ICR, Inc. tom.filandro@icrinc.com
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