Citi Trends Announces 2020 Holiday Sales Results and Updates Long-term Strategic Plan
Comparable sales increased 10.3% for the nine-week holiday period
Expects fourth quarter adjusted EPS between
Repurchased approximately 316,000 shares in the fourth quarter to-date
Investor presentation updated with information including a long-term strategic plan
Total sales for the nine-week period ended
Makuen continued, “Given our strong quarter-to-date results, we now expect positive comparable store sales in the low double-digit range for the fourth quarter. We enter 2021 in a strong position and are excited about the underlying momentum of our business. We are committed to the same merchandising and marketing strategies that have driven our recent success, and we believe we are well positioned to continue capitalizing on the demand for our brand and serving our loyal customer base.”
Guidance
Based on the quarter-to-date trends, the Company expects fourth quarter 2020 positive comparable store sales in the low double-digit range. For the full year 2020, the Company expects total sales to be only slightly below 2019 total sales, despite the fact that the Company’s stores were closed for approximately 16% of the total available store days in 2020 due primarily to the impact of COVID-19. The Company expects fourth quarter 2020 diluted earnings per share of
Capital Return Program Update
In the fourth quarter to-date, the Company has repurchased approximately 316,000 shares of its common stock at an aggregate cost of
Long-Term Strategic Plan Update
The Company has revised its investor presentation to include updates on the execution of its strategic initiatives as well as other updates based on the Company’s ongoing review of its three-year strategic plan. Such presentation includes the following information, among other things:
-
Increasing top-line sales to more than
$1 billion in fiscal 2023
- Comparable store sales growth of ~3% per year
- Growing the fleet with at least 100 new stores by the end of fiscal 2023
- Remodeling at least 150 stores by the end of fiscal 2023
- Investing in infrastructure improvements for merchandising, supply chain and stores
- Operating income growth at a compound annual growth rate of 20%+ per year
- Diluted earnings per share growth at a compound annual growth rate of 25%+ per year
The presentation is available online at www.cititrends.com, under the Investor Relations section. This presentation will be referenced by management at the
As previously announced, the Company will be participating in the virtual
About
*Non-GAAP Financial Measures
The historical non-GAAP financial measures discussed herein are reconciled to their corresponding GAAP measures at the end of this press release. The Company is unable to provide a full reconciliation of the forward-looking non-GAAP financial measures used in 2020 guidance without unreasonable effort because it is not possible to predict certain of its adjustment items with a reasonable degree of certainty. This information is dependent upon future events and may be outside of the Company’ control and its unavailability could have a significant impact on its financial results.
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
RECONCILIATION OF GAAP BASIS OPERATING RESULTS TO
ADJUSTED NON-GAAP OPERATING RESULTS
(unaudited)
(in thousands, except per share data)
The Company makes reference in this release to adjusted earnings per diluted share for the thirteen and fifty-two weeks ended
Fifty-Two Weeks Ended |
|||||||||||||||
As Reported | Adjustment (1) | Adjustment (2) | Adjustment (3) | As Adjusted | |||||||||||
(unaudited) | (unaudited) | (unaudited) | |||||||||||||
Net sales |
$ |
781,925 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
781,925 |
|
Cost of sales (exclusive of depreciation shown separately below) |
|
(484,740 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(484,740 |
) |
Selling, general and administrative expenses |
|
(259,629 |
) |
|
571 |
|
|
1,042 |
|
|
- |
|
|
(258,016 |
) |
Depreciation |
|
(18,535 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(18,535 |
) |
Asset impairment |
|
(472 |
) |
|
- |
|
|
- |
|
|
472 |
|
|
- |
|
Income from operations |
|
18,549 |
|
|
571 |
|
|
1,042 |
|
|
472 |
|
|
20,634 |
|
Interest income |
|
1,577 |
|
|
- |
|
|
- |
|
|
- |
|
|
1,577 |
|
Interest expense |
|
(158 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(158 |
) |
Income before income taxes |
|
19,968 |
|
|
571 |
|
|
1,042 |
|
|
472 |
|
|
22,053 |
|
Income tax expense |
|
(3,465 |
) |
|
(99 |
) |
|
(181 |
) |
|
(82 |
) |
|
(3,827 |
) |
Net income |
$ |
16,503 |
|
$ |
472 |
|
$ |
861 |
|
$ |
390 |
|
$ |
18,226 |
|
Basic net income per common share |
$ |
1.41 |
|
$ |
1.56 |
|
|||||||||
Diluted net income per common share |
$ |
1.41 |
|
$ |
1.56 |
|
|||||||||
Weighted average number of shares outstanding | |||||||||||||||
Basic |
|
11,674 |
|
|
11,674 |
||||||||||
Diluted |
|
11,699 |
|
|
11,699 |
|
|||||||||
(1) Interim CEO related expenses and related tax effects | |||||||||||||||
(2) Proxy contest expenses and related tax effects | |||||||||||||||
(3) Asset impairment expenses and related tax effects | |||||||||||||||
Thirteen Weeks Ended |
|||||||||
As Reported | Adjustment (1) | As Adjusted | |||||||
(unaudited) | (unaudited) | (unaudited) | |||||||
Net sales |
$ |
211,013 |
|
$ |
- |
|
$ |
211,013 |
|
Cost of sales (exclusive of depreciation shown separately below) |
|
(127,311 |
) |
|
- |
|
|
(127,311 |
) |
Selling, general and administrative expenses |
|
(67,654 |
) |
|
571 |
|
|
(67,083 |
) |
Depreciation |
|
(4,794 |
) |
|
- |
|
|
(4,794 |
) |
Asset impairment |
|
- |
|
|
- |
|
|
- |
|
Income from operations |
|
11,254 |
|
|
571 |
|
|
11,825 |
|
Interest income |
|
363 |
|
|
- |
|
|
363 |
|
Interest expense |
|
(41 |
) |
|
- |
|
|
(41 |
) |
Income before income taxes |
|
11,576 |
|
|
571 |
|
|
12,147 |
|
Income tax expense |
|
(2,154 |
) |
|
(106 |
) |
|
(2,260 |
) |
Net income |
$ |
9,422 |
|
$ |
465 |
|
$ |
9,887 |
|
Basic net income per common share |
$ |
0.84 |
|
$ |
0.88 |
|
|||
Diluted net income per common share |
$ |
0.84 |
|
$ |
0.88 |
|
|||
Weighted average number of shares outstanding | |||||||||
Basic |
|
11,202 |
|
|
11,202 |
|
|||
Diluted |
|
11,271 |
|
|
11,271 |
|
|||
(1) Interim CEO related expenses and related tax effects |
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