First quarter total sales through April 3rd
increased 77.2% compared to the same period in 2020, and 36.3%
compared to the same period in 2019, exceeding internal
expectations
Expects first quarter earnings per share in
the range of $2.75 to $2.90
Repurchased approximately 453,000 shares in
the first quarter through April 3rd
Citi Trends, Inc. (NASDAQ:
CTRN), a growing specialty value retailer of apparel, accessories
and home trends primarily for African American and Latinx families
in the United States, today provided a business update.
Business Update
- Total sales for the first quarter through April 3, 2021
increased 77.2% compared to the same period in the prior year, and
36.3% compared to the same period in 2019, exceeding internal
expectations.
- Comparable store sales for the first quarter through April 3,
2021 increased 74.5% compared to the same period in 2020.
- For comparison purposes, first quarter 2020 sales were
significantly impacted by the COVID-19 pandemic, which caused the
temporary closure of the Company’s stores beginning March 20,
2020.
- First quarter 2021 earnings per share expected to be in the
range of $2.75 to $2.90.
David Makuen, Chief Executive
Officer, said, “We are very pleased with our first quarter topline
performance through April 3rd, which has exceeded our expectations.
Our positive momentum has been driven by the loyalty of our
existing customer base as well as the attraction of new customers,
the strength of our brand, and our on-trend assortment, combined
with the Federal Government stimulus that started during the third
week of March. We are also very encouraged by the meaningful
merchandise margin expansion we are seeing in the business, while
we also remain disciplined in our expense management. As a result
of our impressive performance and the increased demand for our
merchandise, we expect to end the first quarter strong, resulting
in total sales of $280 to $285 million.”
Makuen further commented, “As
we look forward, the environment remains uncertain and there is no
assurance that our first quarter trends will continue, particularly
as we approach the significant positive performance after reopening
our stores in the second quarter of 2020. Therefore, while we
remain confident that we can meet our forecast for the remainder of
the year, we expect the environment to continue to be volatile in
the weeks and months ahead. Additionally, we are sensitive to the
ongoing tensions occurring in Minneapolis and other cities and will
continue to support our communities and prioritize the safety and
wellbeing of our customers and associates.”
These financial expectations
are unaudited, based upon the Company’s current estimates, and
subject to completion of financial and accounting
procedures.
Capital Return Program
Update
In the first quarter through
April 3, the Company repurchased approximately 453,000 shares of
its common stock at an aggregate cost of approximately $37.2
million. This included 250,000 shares bought back in a block
repurchase.
Guidance
The Company is estimating
first quarter total sales to be in the range of $280 to $285
million, or an increase of 141% to 145% as compared to the same
period in 2020 and an increase of 37% to 39% as compared to the
same period in 2019. The Company expects earnings per share for the
first quarter of 2021 to be in the range of $2.75 to $2.90. In
light of the strong first quarter performance, the Company intends
to update its 2021 guidance for the year during its first quarter
earnings call in May.
J.P. Morgan Virtual Consumer
Conference
The Company today announced that representatives of the Company
will participate in virtual one-on-one investor meetings at the 7th
Annual J.P. Morgan Retail Round Up Virtual Consumer Conference
being held on Thursday, April 15, 2021.
About Citi Trends
Citi Trends, Inc. is a growing specialty value retailer of
apparel, accessories and home trends for way less spend primarily
for African American and Latinx families in the United States. The
Company operates 584 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, the ability to anticipate and respond to fashion trends
and the duration and extent of economic stimulus. 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/20210414005160/en/
Tom Filandro ICR, Inc. (646) 277-1235
Citi Trends (NASDAQ:CTRN)
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