Citi Trends Provides Business Update
September 14 2020 - 4:05PM
Business Wire
Fully repaid outstanding borrowings under
revolving credit facility
Reinstates $30 million share repurchase
program
Reaffirms prior third quarter 2020
guidance
Citi Trends, Inc. (NASDAQ:
CTRN), the leading value retailer of apparel, accessories and home
goods for way less spend primarily for African American families in
the United States, today provided a business update and announced
participation in the 3rd Annual Wells Fargo Virtual Consumer
Conference.
Business Update
- The Company today announced that it has fully repaid the $41.6
million of borrowings that were outstanding under its revolving
credit facility. The draw down on the revolving credit facility in
March 2020 was a proactive measure to enhance the Company’s
liquidity position in response to the novel coronavirus
(“COVID-19”) pandemic.
- The Company today announced the reinstatement of its previously
authorized $30 million share repurchase program. Repurchases under
this program were temporarily suspended in March 2020 due to the
economic uncertainty stemming from the COVID-19 pandemic. The
Company expects to fund the share repurchase program from cash on
hand.
Chief Executive Officer
Comments
David Makuen, Chief Executive
Officer, commented, “Our decision to fully repay our outstanding
credit facility borrowings and resume our share repurchase program
is a testament to the confidence we have in our evolving business
model and our strong balance sheet and liquidity position. I remain
extremely proud of our teams across all business functions as they
continue to successfully rise above the challenges created by the
COVID-19 pandemic.”
Makuen concluded, “As we
exited the traditional back-to-school selling season, we are
encouraged by more normalized trends and we are now turning our
focus to readying our fleet for the important holiday selling
season with an emphasis on extreme value gifts for Christmas and
Kwanzaa.”
Guidance
The Company reaffirms its
previously announced financial guidance for fiscal 2020 third
quarter of estimating a comparable store sales range of negative
mid-single digits to flat with continued gross margin expansion
building on momentum from the second quarter. This estimate
continues to be subject to potential consumer and marketplace
volatility due to the COVID-19 pandemic and therefore may change as
the quarter progresses.
Wells Fargo Virtual Consumer
Conference
The Company today announced
that representatives of the Company will host one-on-one investor
meetings at the 3rd Annual Wells Fargo Virtual Consumer Conference
on Wednesday, September 16, 2020. The event covers numerous
consumer sectors, including ecommerce, Softlines Retail, Leisure,
Apparel/Footwear, Broadlines/Hardlines, Staples Retail/Food
Service, and Restaurants.
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 580 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200914005746/en/
Tom Filandro ICR, Inc. tom.filandro@icrinc.com
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