Citi Trends Announces Next Steps Under Its Capital Return Program
June 02 2021 - 6:45AM
Business Wire
Board Authorizes new $30 million share
repurchase program
Citi Trends, Inc. (NASDAQ:
CTRN), 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, today announced the
authorization of a new share repurchase program.
After careful analysis of its cash position coming out of a
record first quarter of 2021 and keeping in step with its recent
capital allocation strategy, inclusive of store growth
opportunities, infrastructure investments, and returning cash to
shareholders, the Company’s board of directors today announced the
authorization of a new $30 million share repurchase program. The
Company expects to fund the share repurchase program from cash on
hand.
David Makuen, Chief Executive Officer, commented, “We are
pleased to see continued momentum in our business and, as you heard
during our recent first quarter earnings call, we are exceeding our
original goals for 2021. The approval by our board of another share
repurchase program demonstrates confidence in our business and our
outlook for successful growth over the long term. We have a great
cash position, a healthy balance sheet, no debt and continue to
generate strong cash flow. We are very pleased to be in a position
to not only invest in our business, but also reward our
shareholders while maintaining financial flexibility.”
In fiscal 2021 through the end of May, the Company has
repurchased approximately 623,000 shares of its common stock at an
aggregate cost of approximately $53.6 million. As of May 28, 2021,
approximately $1.7 million remains available under the Company’s
previously authorized share repurchase program.
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 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 and expectations of
management for future operations, capital allocation expectations
and our intentions and ability to complete any share repurchases,
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.
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; transportation and distribution delays or
interruptions; changes in freight rates; the Company’s ability to
negotiate effectively the cost and purchase of merchandise
inventory risks due to shifts in market demand; the Company’s
ability to gauge fashion trends and changing consumer preferences;
changes in consumer spending patterns; the duration and extent of
economic stimulus; changes in product mix; interruptions in
suppliers’ businesses; temporary changes in demand due to weather
patterns; seasonality of the Company’s business; delays associated
with building, opening and operating new stores; and delays
associated with building, and opening or expanding new or existing
distribution centers. Any forward-looking statements by the
Company, with respect to 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20210602005297/en/
Tom Filandro
ICR, Inc. (646) 277-1235
Citi Trends (NASDAQ:CTRN)
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