On April 3, 2020, Citi Trends, Inc. (the
“Company”) announced that due to circumstances and uncertainty surrounding the effects of the outbreak of the coronavirus
(COVID-19) on the Company as described below, the Company has determined that it will delay the filing of its annual report on
Form 10-K for the fiscal year ended February 1, 2020 (the “Annual Report”) by up to 45 days in accordance with the
SEC’s March 25, 2020 Order (Release No. 34-88465) (the “Order”). The Order allows for the delay of certain filings
required under the Securities and Exchange Act of 1934, as amended.
The Company’s operations and business
have experienced disruptions due to the unprecedented conditions surrounding the spread of COVID-19 throughout the United States.
These disruptions include office closures and the availability of key Company personnel required to prepare the Annual Report due
to suggested, and mandated, social quarantining and work from home orders. Due to these disruptions, the Company is unable to timely
prepare and review the Annual Report. The Company anticipates that it will file its Annual Report by no later than May 29, 2020,
45 days after the original due date of its Annual Report.
In addition, the Company is supplementing
the risk factors previously disclosed in the Company’s Annual Report on Form 10-K for the year ended February 2, 2019 and
its subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, with the following risk factor:
“Our financial and operating performance may be materially
and adversely affected by the outbreak of the novel coronavirus (“COVID-19”).
The recent outbreak of COVID-19 in the U.S. has had an unfavorable
impact on our business operations. Mandatory closures of businesses imposed by the federal, state and local governments to control
the spread of the virus is disrupting the operations of our management, business and finance teams. In response to COVID-19, the
Company temporarily closed all of its retail stores and distribution facilities as of March 20, 2020. We cannot foresee whether
the outbreak of COVID-19 will be effectively contained, nor can we predict the severity and duration of its impact on our business
and our consolidated financial results. If the outbreak of COVID-19 is not effectively and timely controlled, our business operations,
financial condition and liquidity may be materially and adversely affected as a result of a prolonged closure of some or all of
our retail stores and distribution facilities, disruptions in our supply chain and with our transportation providers, slowdown
in consumer spending and other factors that we cannot foresee. The extent to which COVID-19 will impact our business and our consolidated
financial results will depend on future developments which are highly uncertain and cannot be predicted.”
Forward-Looking Statements
All statements other than historical facts contained in this
news release 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. Investors are cautioned
that any such forward-looking statements 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, potential risks and uncertainties relating to the ultimate geographic spread of the coronavirus (COVID-19), the severity of
the disease, the duration of the COVID-19 outbreak, actions that may be taken by governmental authorities to contain the COVID-19
outbreak or to treat its impact, the potential negative impacts of COVID-19 on the global economy and foreign sourcing and the
impacts of COVID-19 on the Company's financial condition and business operation. Any forward-looking statements by the Company
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.