Total sales increased 2.9% to $640.8 million for the full fiscal
year
Comparable store sales decreased 6.2% in the fourth quarter and
8.3% for the year
Fourth quarter net loss expected to approximate $0.40 per diluted
share
SAVANNAH, Ga.--(BUSINESS WIRE)--
Citi Trends, Inc. (NASDAQ: CTRN) today reported unaudited sales results
for the fourth quarter and fiscal year ended January 28, 2012.
Total sales in the 13-week period ended January 28, 2012 increased 3.7%
to $178.4 million compared with $172.0 million in the 13-week period
ended January 29, 2011. Comparable store sales decreased 6.2% in the
fourth quarter. By month, comparable store sales were down 10.7% in
November, down 2.3% in December and down 11.2% in January. Comparable
store sales in January were up more than 3% until the last two days of
the month, which were both down 40% due to a delay of one to two weeks
for income tax refunds, as announced by the Internal Revenue Service.
For the year, total sales increased 2.9% to $640.8 million compared with
$622.5 million in fiscal 2010. Comparable store sales decreased 8.3% for
the full year.
The Company stated that, although the year-end closing process has just
begun, based on the negative fourth quarter comparable store sales
results and a significantly lower gross margin, it expects to report a
net loss of approximately $0.40 per diluted share for the fourth
quarter. Included in the estimated quarterly loss is the adverse impact
of non-cash impairment expense totaling approximately $0.20 per diluted
share.
Ed Anderson, Chairman and Chief Executive Officer, commented, "While we
are disappointed to report a loss for the fourth quarter, there are
positives to report. Our sales trends improved significantly as we moved
through the quarter, except for the impact of the shift in income tax
refunds on the last two days of the quarter. We ended the year with the
cleanest, best-balanced inventory in some time, preparing us well for
the important first quarter. In addition, we continue to be strong
financially with an excellent balance sheet, over $60 million of cash
and investments, no debt and $50 million of unused capacity under our
revolving line of credit."
Regarding sales, Mr. Anderson stated, "Our company sells urban fashions,
which we believe are whatever our customers tell us they are. Currently,
our customers are telling us that price and fashion are important, while
brands are less important. Many of the urban brands that have been
important to us over the last few years do not resonate as well with our
customers as they once did. In response to this shift in customer
demand, we have taken some important actions. We have reduced our
everyday prices of branded and fashion (unbranded) merchandise. We have
marked down and reduced our ownership of significant amounts of branded
merchandise to better match inventory levels with sales. We have
re-balanced our inventory and increased our ratio of fashion merchandise
to the total."
In discussing gross margin for the quarter, Mr. Anderson stated, "The
reduction in gross margin was primarily the result of markdowns taken to
reduce pricing for competitive reasons and to reduce excess quantities
of branded merchandise. As mentioned before, we feel very good about the
levels and freshness of our inventory as we enter the very important
first quarter."
Looking ahead, Mr. Anderson concluded, "The economic issues that have
impacted our consumer and our performance continue to be a challenge,
but we have taken strong action on the things we can control. While we
have work left to do, I am very optimistic about what we can deliver in
2012."
The Company will report complete financial results for its fourth
quarter and fiscal 2011 before the market opens on March 9, 2012. Citi
Trends will host a conference call on the same day at 9:00 a.m. ET. The
number to call for the live interactive teleconference is
(212) 231-2906. A replay of the conference call will be available until
March 16, 2012, by dialing (402) 977-9140 and entering the passcode,
21575847.
The live broadcast of Citi Trends' quarterly conference call will be
available online at the Company's website, www.cititrends.com,
on March 9, 2012, beginning at 9:00 a.m. ET. The online replay will
follow shortly after the call and continue until March 16, 2012.
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
511 stores located in 29 states. 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 anticipated financial results and 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. Any forward-looking statements by
the Company, with respect to earnings guidance 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, 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.
Ed Anderson, 912-443-3705
Chief Executive
Officer
or
Bruce Smith
Chief Financial Officer,
912-443-2075
Source: Citi Trends, Inc.
News Provided by Acquire Media
