Citi Trends, Inc. Logo

Print Print page   Email Email page   PDF Download PDF    Add to Briefcase
« Previous Release | Next Release »



Citi Trends Announces Fourth Quarter and Fiscal 2010 Results and Provides Earnings Guidance for Fiscal 2011


SAVANNAH, Ga.--(BUSINESS WIRE)-- Citi Trends, Inc. (NASDAQ: CTRN) today reported results for the fourth quarter and fiscal year ended January 29, 2011.

Financial Highlights — Fourth quarter ended January 29, 2011

Total sales in the fourth quarter ended January 29, 2011 increased 1.3% to $172.0 million compared with $169.8 million in the quarter ended January 30, 2010. Comparable store sales decreased 11.4% in the fourth quarter. Sales were particularly weak in December due largely to a delay in the government's distribution of extended unemployment benefits until just before Christmas, a significant shortfall in sales of long denim, and a heavy promotional environment that included going-out-of-business sale events by a major competitor. Sales in January were negatively impacted by a later income tax refund season due to a lack of refund anticipation loan availability for the Company's customers.

Net income in the fourth quarter of 2010 was $9.4 million compared with $11.3 million in last year's fourth quarter. Earnings per diluted share decreased to $0.64 in the fourth quarter of 2010 compared with $0.78 in the fourth quarter of 2009. Financial results for the fourth quarter of 2010 included an immaterial correction of an error related to an accounting policy. Prior to the fourth quarter, the Company's policy was to expense the cost of inbound freight associated with the delivery of inventory to the Company's distribution centers in the period incurred, rather than capitalizing such costs as a component of inventory and expensing them as the related inventory was sold. In the fourth quarter of 2010, the Company began to capitalize freight costs as a component of the cost of inventory. The impact of this adjustment in the fourth quarter was a non-recurring reduction in cost of sales of $2.7 million and a resulting increase in net income of $1.8 million, or $0.12 per diluted share.

The Company opened 3 stores in the fourth quarter of 2010, reaching a total store count of 461 at the end of the year. In addition, the Company converted 15 of its stores to its new Citi Lights prototype format in January 2011, and now has a total of 25 stores operating under the new format.

Financial Highlights — Fiscal year ended January 29, 2011

Total sales in the fiscal year ended January 29, 2011 increased 12.8% to $622.5 million compared with $551.9 million in the fiscal year ended January 30, 2010. Comparable store sales decreased 1.8% for the full year.

Net income was $20.9 million in 2010 compared with $19.7 million in the prior year. Earnings per diluted share increased to $1.44 in 2010 compared to $1.36 in 2009, with 2010 including the aforementioned benefit related to capitalized freight.

The Company opened 60 stores, relocated or expanded 13 others, and closed 2 stores in 2010.

Fiscal 2011 Outlook — Fiscal year ending January 28, 2012

The Company estimates fiscal 2011 earnings of approximately $1.40 to $1.50 per diluted share, including an anticipated comparable store sales increase of approximately 2% and an increase in selling square footage of at least 15%. Through the first five-plus weeks of the new fiscal year, comparable store sales are down 2%, versus an 11% increase during the same period of time last year.

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 9:00 a.m. ET. The number to call for the live interactive teleconference is (212) 231-2901. A replay of the conference call will be available until March 18, 2011, by dialing (402) 977-9140 and entering the passcode, 21510236. The live broadcast of Citi Trends' 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 9:00 a.m. ET. The online replay will follow shortly after the call and continue through March 18, 2011.

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. After opening three stores and closing one thus far in the first quarter of 2011, the Company currently operates 463 stores located in 27 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 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 Ended Thirteen Weeks Ended
January 29, 2011 January 30, 2010
(unaudited) (unaudited)
Net sales $ 172,043 $ 169,811
Cost of sales   105,184     104,258  
Gross profit 66,859 65,553
Selling, general and administrative expenses 47,112 44,050
Depreciation and amortization   5,692     4,752  
Income from operations 14,055 16,751
Interest income 34 75
Interest expense   (7 )   (6 )
Income before income tax expense 14,082 16,820
Income tax expense   4,718     5,569  
Net income $ 9,364   $ 11,251  
 
Basic net income per common share $ 0.64   $ 0.78  
Diluted net income per common share $ 0.64   $ 0.78  
 
Net income attributable to common shares (1):
Basic $ 9,364   $ 11,251  
Diluted $ 9,364   $ 11,251  
 
Weighted average shares used to compute basic net income per share   14,523     14,402  
Weighted average shares used to compute diluted net income per share   14,537     14,447  
 
 
Fifty-Two Weeks Ended Fifty-Two Weeks Ended
January 29, 2011 January 30, 2010
(unaudited) (unaudited)
Net sales $ 622,528 $ 551,869
Cost of sales   383,318     338,898  
Gross profit 239,210 212,971
Selling, general and administrative expenses 187,231 165,166
Depreciation and amortization   20,535     18,431  
Income from operations 31,444 29,374
Interest income 174 404
Interest expense   (24 )   (92 )
Income before income tax expense 31,594 29,686
Income tax expense   10,742     9,969  
Net income $ 20,852   $ 19,717  
 
Basic net income per common share $ 1.44   $ 1.36  
Diluted net income per common share $ 1.44   $ 1.36  
 
Net income attributable to common shares (1):
Basic $ 20,852   $ 19,540  
Diluted $ 20,852   $ 19,541  
 
Weighted average shares used to compute basic net income per share   14,503     14,364  
Weighted average shares used to compute diluted net income per share   14,523     14,396  
 
 
(1) Net of income allocated to nonvested restricted stockholders
 
 
 
CITI TRENDS, INC.
CONDENSED BALANCE SHEETS (unaudited)
(in thousands)
 
January 29, 2011 January 30, 2010
(unaudited) (unaudited)
Assets:
Cash and cash equivalents $ 69,231 $ 62,993
Short-term investment securities 586 33,025
Inventory 121,432 100,874
Other current assets 16,669 14,927
Property and equipment, net 85,299 63,791
Long-term investment securities 9,205 -
Other noncurrent assets   3,980     4,376  
Total assets $ 306,402   $ 279,986  
 
Liabilities and Stockholders' Equity:
Accounts payable $ 67,934 $ 62,706
Accrued liabilities 23,184 22,273
Other current liabilities 444 3,669
Noncurrent liabilities   10,036     9,995  
Total liabilities 101,598 98,643
 
Total stockholders' equity   204,804     181,343  
Total liabilities and stockholders' equity $ 306,402   $ 279,986  

Citi Trends, Inc.
Bruce Smith, 912-443-2075
Chief Financial Officer
or
David Alexander, 912-443-3924
President and Chief Executive Officer

Source: Citi Trends, Inc.

News Provided by Acquire Media

Close window | Back to top