SAVANNAH, Ga.--(BUSINESS WIRE)--
Citi Trends, Inc. (NASDAQ: CTRN) today announced the elimination of 40
positions in its corporate offices, distribution centers and store
organization. The Company also announced that it would pull back on its
new store opening plans, only opening stores for which it has already
made commitments. This will result in approximately 55 new store
additions for 2011 and approximately five for 2012.
David Alexander, President and Chief Executive Officer of Citi Trends,
stated, "The decision to downsize was a very difficult one. The
individuals who are being affected today have made valuable
contributions to our company and they will be missed. We appreciate what
each one of them has done for Citi Trends and wish them the very best in
the future. Over the past few months we have undertaken many important
initiatives to turn around our business. We believe the two steps taken
today help ensure our success through a very challenging economy.
Despite the difficult environment in which we are currently operating,
we continue to be very optimistic about the Company's future. We have a
great niche, a great customer relationship and a very strong balance
sheet with approximately $70 million of cash and investments and no
The Company expects the staff reductions to result in approximately $3.5
million in annualized savings, while incurring an approximate $800,000
severance charge in the third quarter of fiscal 2011.
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. 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 Citi Trends, Inc. filings with the Securities and Exchange
Commission. Forward-looking statements contained herein speak
only as of the date of this press release. 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
About Citi Trends
Citi Trends, Inc. is a value-priced retailer of urban fashion apparel
and accessories for the entire family. The Company operates 495 stores
located in 28 states. Citi Trends' website address is www.cititrends.com.
Citi Trends, Inc.
Bruce Smith, 912-443-2075
David Alexander, 912-443-3924
Chief Executive Officer
Source: Citi Trends, Inc.
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