Citi Trends Announces CEO Transition
June 11 2019 - 4:30PM
Business Wire
Bruce Smith to Step Down
Director Sachse to Serve as Special Advisor
and Assist with the Transition
Citi Trends, Inc. (NASDAQ: CTRN) today announced chief
executive officer Bruce Smith has decided to resign from his
position as CEO. However, in order to provide for an orderly
transition, Mr. Smith has agreed to continue to serve as CEO until
the earlier of when his successor is in place or February 1,
2020.
“We extend our thanks to Bruce for his service, dedication and
leadership over more than a decade at Citi Trends. He distinguished
himself first as chief financial officer, rising to chief operating
officer and ultimately to chief executive officer,” said Citi
Trends Board Chairman Brian Carney. “We deeply appreciate his
commitment and hard work. We wish him well in all his future
endeavors.”
Mr. Smith said, “It has been my great honor to serve Citi Trends
for the past 12 years. I am proud to have contributed to the growth
of this business that offers affordable urban fashion apparel and
accessories for the entire family. I am especially thankful to my
long-time colleagues and to all our associates who serve our
customers. I believe the future of Citi Trends is bright and I will
be cheering for the Company’s success.”
The Board has formed a search committee to identify the
Company’s new CEO and retained an executive search firm to assist
in the process.
During this period of transition, the Board also has appointed
Peter Sachse to serve as Special Advisor to the CEO. In this role,
he will provide strategic advice and counsel to the CEO during the
transition and will assist Mr. Smith in pursuing the strategic
objectives of the Board and positioning the Company to grow and
deliver value for its customers, associates and shareholders.
Mr. Sachse has over three decades of experience at Macy’s Inc.,
including as chief growth officer, chief innovation and development
officer, chief stores officer, chief marketing officer and as chief
executive officer of macy’s.com. He is recognized for his
exceptional record of architecting, growing and transforming
consumer retail engagement for Macy’s, Inc. across a variety of
functions, channels and brands. As CEO of macys.com, he led all
aspects of the company’s online presence to deliver 10x growth over
six years.
Mr. Sachse said, “I look forward to working with the team at
Citi Trends to capture the exciting opportunities in the value
retail space and to ensure that this period of transition is one of
forward momentum for the Company.”
“As we look to the future, we see opportunity to leverage our
strong balance sheet and loyal customer base as we innovate with
new merchandising, marketing and distribution strategies,” Mr.
Carney said. “Citi Trends is focused on improving its merchandising
strategies and execution, expanding its non-apparel offerings,
executing its cost cutting initiatives, and exploring new markets,
including testing new stores in predominantly Hispanic areas. We
are committed to making the changes necessary to thrive and grow to
the benefit of our customers, employees and shareholders.”
About Citi Trends
Citi Trends, Inc. is a value-priced retailer of urban
fashion apparel and accessories for the entire family. The Company
operates 561 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 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" 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 or sales 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 the Company’s filings
with the Securities and Exchange Commission, including those
set forth under the heading “Item 1A. Risk Factors” in the
Company’s Form 10-K for the fiscal year ended February 3,
2018.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, 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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Bruce SmithPresident and Chief Executive Officer(912)
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