Appoints David Makuen as Chief Executive
Officer
Interim CEO Peter Sachse to transition to
Executive Chairman
Fiscal 2019 full year EPS narrowed to upper
end of prior guidance
Citi Trends, Inc. (NASDAQ: CTRN) today announced that the
Company’s Board of Directors has appointed David Makuen as Chief
Executive Officer, effective March 9, 2020. Mr. Makuen will succeed
Peter Sachse, who has served as Interim CEO since December 9, 2019.
Mr. Makuen will assume the day-to-day leadership of the Company and
will also join Citi Trends’ Board of Directors. Peter Sachse has
been appointed by the Board of Directors as the Executive Chairman,
effective March 9, 2020, and will work alongside David as he
transitions into his new role as CEO. In addition, the Company has
narrowed its fiscal 2019 earnings per diluted share guidance to a
range of $1.47 to $1.49 when adjusted for proxy-contest and interim
CEO related expenses*, which is at the upper end of the Company’s
prior guidance. The Company is also reporting that it achieved a
3.1% comparable store sales increase for the fourth quarter.
CEO Appointment and
Transition
The Company’s Chairman of the Board, Brian Carney, commented,
“We are excited to have David join Citi Trends. David comes to us
with over 24 years of retail experience, most recently as Executive
Vice President of marketing, strategy, and ecommerce for Five
Below. David was a member of the leadership team that oversaw Five
Below’s explosive growth over the past 8 years. David’s proven
leadership experience along with his unique skillset gives us
confidence that he is the right leader to drive Citi Trends’
long-term strategic plan to reach sales of $1.0 billion by 2022 and
an earnings per share CAGR of 20-25%.”
Carney continued, “We are also thrilled to have Peter Sachse’s
continued involvement as he partners with David to drive Citi
Trends’ strategic objectives over both the near and longer terms.
Peter’s guidance over the last few months as Interim CEO and his
appointment to Executive Chairman will make for a smooth leadership
transition, enabling the team to leverage his extensive knowledge
and experience to maximize the strategic initiatives he has
spearheaded at Citi Trends.”
David Makuen commented, “I am incredibly excited about the
opportunity to join the Citi Trends team. Citi Trends’ unique value
proposition servicing the complete apparel, accessories and home
goods needs of African American consumers provides a significant
platform for growth. I look forward to working alongside Peter
Sachse and the talented team at Citi Trends as we set our sights on
growing into a $1.0 billion brand.”
Peter Sachse commented, “I am extremely excited to have David on
board as our CEO and I fully intend to remain actively involved in
the execution of the business. I am confident we have the right
leadership in place and firmly believe Citi Trends is poised to
achieve its 3-year strategic plan. It has been my distinct pleasure
and honor as Interim CEO to work alongside the talented and
dedicated Citi Trends team.”
Updates Fiscal 2019 Fourth Quarter
Guidance
The Company is updating its full year fiscal 2019 earnings per
diluted share guidance, to a range of $1.47 to $1.49 when adjusted
for proxy-contest and interim CEO related expenses*. The guidance
range incorporates a fourth quarter comparable store sales increase
of 3.1%.
In addition, as of today the Company has completed the $25
million share repurchase program that was announced in November
2019.
Management will provide further details on its fourth quarter
conference call on March 13, 2020 at 9:00 a.m. ET. The number to
call for the live interactive teleconference is (212) 231-2931. The
live broadcast of Citi Trends' conference call will be available
online at the Company's website, www.cititrends.com, under the
Investor Relations section.
About Citi Trends
Citi Trends, Inc. is a value-priced retailer of urban fashion
apparel, accessories and home goods for the entire family. The
Company operates 571 stores located in 33 states. Citi Trends’
website address is www.cititrends.com. CTRN-G
* Non-GAAP Financial
Measure
This is a forward-looking non-U.S. GAAP financial measure. The
Company has not provided a U.S. GAAP reconciliation of this measure
because the items impacting this measure cannot be reasonably
predicted or determined. As a result, such reconciliation is not
available without unreasonable efforts and the Company is unable to
determine the probable significance of the unavailable
information.
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 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 2, 2019. 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 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/20200221005012/en/
Peter R. Sachse Interim Chief
Executive Officer (912)
443-3110
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