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March 25, 2009 at 12:00 AM EDT

Citi Trends Announces Fourth Quarter and Fiscal 2008 Results

SAVANNAH, Ga., Mar 25, 2009 (BUSINESS WIRE) -- Citi Trends, Inc. (NASDAQ: CTRN) today reported results for the fourth quarter and fiscal year ended January 31, 2009.

Financial Highlights - Fourth quarter ended January 31, 2009

Total sales in the fourth quarter ended January 31, 2009 increased 8.9% to $146.6 million compared with $134.6 million in the quarter ended February 2, 2008. Comparable store sales decreased 1.9% in the fourth quarter.

Net income in the fourth quarter of 2008 increased 20.0% to $10.1 million compared with $8.4 million in last year's fourth quarter. Earnings per diluted share increased to $0.70 in the fourth quarter of 2008 compared with $0.59 in the fourth quarter of 2007. Strong control of inventory levels resulted in a significant reduction in merchandise markdowns in this year's fourth quarter, more than offsetting the negative comparable store sales.

The Company opened 16 stores in the fourth quarter of 2008, reaching a total store count of 357 at the end of the year.

Financial Highlights - Fiscal year ended January 31, 2009

Total sales in the fiscal year ended January 31, 2009 increased 11.6% to $488.2 million compared with $437.5 million in fiscal 2007. Comparable store sales were flat for the full year.

Net income increased 22.3% to $17.4 million in 2008 compared with $14.2 million in 2007. Earnings per diluted share increased to $1.22 in 2008 compared with $1.00 in the prior year.

The Company opened 39 stores, relocated or expanded 9 others, and closed 1 store in fiscal 2008.

Fiscal 2009 Outlook

The Company estimates 2009 earnings of approximately $1.30 per diluted share. This guidance includes an anticipated 2009 comparable store sales increase of approximately 3%. For the year, the Company expects to increase selling square footage by at least 15%. Tax-free interest income is expected to decline based on existing market rates.

The Company reminds investors of the complexity of accurately assessing future results given the difficulty in predicting fashion trends, consumer preferences and general economic conditions and the impact of other business variables. See "Forward-Looking Statements" below for more information regarding these uncertainties.

Investor Conference Call and Webcast

Citi Trends will host a conference call today at 5:00 p.m. ET. The number to call for the live interactive teleconference is (303) 228-2960. A replay of the conference call will be available until April 1, 2009, by dialing (303) 590-3000 and entering the passcode, 11124062#. The live broadcast of Citi Trends' quarterly conference call will be available online at the Company's website, www.cititrends.com, as well as http://ir.cititrends.com/events.cfm, beginning today at 5:00 p.m. ET. The online replay will follow shortly after the call and continue until April 1, 2009.

During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends. The Company's responses to questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been disclosed previously.

About Citi Trends

Citi Trends, Inc. is a value-priced retailer of urban fashion apparel and accessories for the entire family. The Company currently operates 361 stores located in 22 states in the Southeast, Mid-Atlantic and Midwest regions and the state of Texas. Citi Trends' website address is www.cititrends.com. CTRN-E

Forward-Looking Statements

All statements other than historical facts contained in this news release, including statements regarding our future financial results and position, business policy and plans and objectives of management for future operations, 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 Citi Trends, are intended to identify forward-looking statements.Statements with respect to earnings guidance are forward-looking statements.Investors are cautioned that any such forward-looking statements are subject to the finalization of the Company's year-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 Citi Trends, Inc. filings with the Securities and Exchange Commission.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.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, Citi Trends 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.

CITI TRENDS, INC.
CONDENSED STATEMENTS OF INCOME
(unaudited)
(in thousands, except per share data)
Thirteen Weeks EndedThirteen Weeks Ended
January 31, 2009February 2, 2008
(unaudited) (unaudited)
Net sales $ 146,603 $ 134,571
Cost of sales 90,695 87,145
Gross profit 55,908 47,426
Selling, general and administrative expenses 37,409 32,892
Depreciation and amortization 4,346 3,488
Income from operations 14,153 11,046
Interest income 280 680
Interest expense (51 ) (97 )
Income before income tax expense 14,382 11,629
Income tax expense 4,326 3,251
Net income $ 10,056 $ 8,378
Basic net income per common share $ 0.71 $ 0.60
Diluted net income per common share $ 0.70 $ 0.59
Weighted average number of shares outstanding
Basic 14,241 14,034
Diluted 14,290 14,188
CITI TRENDS, INC.
CONDENSED STATEMENTS OF INCOME
(unaudited)
(in thousands, except per share data)
Fifty-Two Weeks EndedFifty-Two Weeks Ended
January 31, 2009February 2, 2008
(unaudited) (unaudited)
Net sales $ 488,202 $ 437,515
Cost of sales 301,867 278,783
Gross profit 186,335 158,732
Selling, general and administrative expenses 147,009 127,470
Depreciation and amortization 16,261 12,583
Income from operations 23,065 18,679
Interest income 2,495 2,383
Interest expense (307 ) (469 )
Income before income tax expense 25,253 20,593
Income tax expense 7,870 6,379
Net income $ 17,383 $ 14,214
Basic net income per common share $ 1.23 $ 1.02
Diluted net income per common share $ 1.22 $ 1.00
Weighted average number of shares outstanding
Basic 14,131 13,946
Diluted 14,269 14,223
CITI TRENDS, INC.
CONDENSED BALANCE SHEETS
(unaudited)
(in thousands)
January 31, 2009February 2, 2008
(unaudited) (unaudited)
Assets:
Cash and cash equivalents $ 33,516 $ 6,203
Investment securities - current --- 56,165
Inventory 86,259 82,420
Other current assets 14,072 8,726
Property and equipment, net 58,861 52,207
Investment securities - noncurrent 43,825 ---
Other noncurrent assets 4,256 4,456
Total assets $ 240,789 $ 210,177
Liabilities and Stockholders' Equity:
Accounts payable $ 52,295 $ 43,566
Accrued liabilities 18,992 17,089
Other current liabilities 2,649 3,370
Noncurrent liabilities 8,646 8,005
Total liabilities 82,582 72,030
Total stockholders' equity 158,207 138,147
Total liabilities and stockholders' equity $ 240,789 $ 210,177

SOURCE: Citi Trends, Inc.

Citi Trends, Inc.
Bruce Smith, 912-443-2075
Chief Financial Officer
or
Ed Anderson, 912-443-3705
Chairman and Chief Executive Officer

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