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March 21, 2007 at 12:00 AM EDT

Citi Trends Announces Fourth Quarter and Fiscal 2006 Results

SAVANNAH, Ga., March 21, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Citi Trends, Inc. (Nasdaq: CTRN) today reported results for the 14-week and 53-week periods ended February 3, 2007.

Financial Highlights - 14 weeks ended February 3, 2007

Net sales increased 30.9% to $126.8 million compared with $96.8 million for the 13-week period ended January 28, 2006. Comparable store sales, on a comparable weeks basis, increased 1.3% compared with a 22.8% increase in the prior year. Relocated and expanded stores are included in the comparable store sales results. Net income increased 30.9% to $10.4 million compared with $7.9 million for the prior-year quarter. Earnings per diluted share increased 32.7% to $0.73 compared with $0.55 in the prior year quarter. The Company's 2006 Fiscal Year, ending February 3, 2007, contains 53 weeks versus the normal 52 weeks, with the extra week falling in the fourth quarter. The 53rd week of 2006 contributed $10.1 million of sales and approximately $0.10 per share to the fourth quarter and year.

Financial Highlights - 53 weeks ended February 3, 2007

Net sales increased 31.8% to $381.9 million compared with $289.8 million for the 52-week period ended January 28, 2006. Comparable store sales, on a comparable weeks basis, increased 8.2% compared with a 16.7% increase in the prior year. Net income increased 50.4% to $21.4 million compared with $14.2 million for the prior year. Earnings per diluted share increased 39.8% to $1.51 compared with $1.08 in the prior year.

Fiscal 2007 Outlook

The Company reiterates its prior estimate for Fiscal 2007 earnings of between $1.73 and $1.77 per diluted share. This estimate is based upon a fiscal 2007 comparable store sales increase of low single digits, 14.3 million diluted shares outstanding, and the opening of 46 to 48 new stores. The new store openings in fiscal 2007 are expected to increase selling square footage by approximately 20%.

First Quarter 2007 Outlook

The Company estimates First Quarter 2007 earnings of $0.44 to $0.49 per diluted share. The Company generated a comparable store sales increase of 21 percent during last year's First Quarter, making comparisons difficult for the year. Further, the 13-week first quarter of 2007 starts and ends one week later than last year's first quarter. This calendar shift has the potential effect of reducing comparable store sales by up to 4%. As a result of last year's high comparable sales increase and the calendar shift, the Company expects some pressure on gross margin and de-leveraging of SG&A in the first quarter compared with last year.

The Company reminds investors of the complexity of accurately assessing future growth given the difficulty in predicting fashion trends, consumer preferences and general economic conditions and the impact of other business variables.

Investor Conference Call and Webcast

Citi Trends will host a conference call on March 21, 2007, at 5:00 p.m. EDT. The number to call for the live interactive teleconference is (913) 981- 5591. A replay of the conference call will be available until March 28, 2007, by dialing (719) 457-0820 and entering the passcode, 8484686.

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/medialist.cfm on March 21, 2007, beginning at 5:00 p.m. EDT. The online replay will follow shortly after the call and continue through March 28, 2007.

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 277 stores located in 16 states in the South, Southeast, Midwest and Mid-Atlantic regions, and our 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 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," "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, and that actual results or developments may differ materially from those 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 and expansion 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 $000's, except share and per share data)

                                              14 Weeks          13 Weeks
                                            Feb. 3, 2007     Jan. 28, 2006
                                            (unaudited)       (unaudited)
    Net sales                                     $126,788           $96,844
      Cost of sales                                 78,104            59,916
    Gross profit                                    48,684            36,928
    Selling, general and administrative
     expenses                                       33,736            25,365
    Income from operations                          14,948            11,563
      Interest income                                  585               393
      Interest expense                                (191)              (42)
    Net income before taxes                         15,342            11,914
      Provision for income taxes                     4,970             3,992
    Net income                                     $10,372            $7,922

    Net income per share, basic                      $0.75             $0.61
    Net income per share, diluted                    $0.73             $0.55

    Weighted average shares used to
     compute net income per share, basic        13,739,277        12,941,959
    Weighted average shares used to
     compute net income per share,
     diluted                                    14,199,753        14,405,559



                                CITI TRENDS, INC.
                         CONDENSED STATEMENTS OF INCOME
                                   (unaudited)
                  (in $000's, except share and per share data)

                                              53 Weeks          52 Weeks
                                            Feb. 3, 2007     Jan. 28, 2006
                                            (unaudited)       (unaudited)
    Net sales                                     $381,918          $289,804
      Cost of sales                                235,744           178,953
    Gross profit                                   146,174           110,851
    Selling, general and administrative
     expenses                                      115,861            89,646
    Income from operations                          30,313            21,205
      Interest income                                2,014               891
      Interest expense                                (359)             (345)
    Net income before taxes                         31,968            21,751
      Provision for income taxes                    10,617             7,551
    Net income                                     $21,351           $14,200

    Net income per share, basic                      $1.57             $1.21
    Net income per share, diluted                    $1.51             $1.08

    Weighted average shares used to
     compute net income per share, basic        13,574,718        11,746,866
    Weighted average shares used to
     compute net income per share,
     diluted                                    14,138,063        13,148,602



                                CITI TRENDS, INC.
                            CONDENSED BALANCE SHEETS
                                   (in $000's)
                                   (unaudited)

                                            Feb. 3, 2007     Jan. 28, 2006
                                            (unaudited)       (unaudited)
    Assets
    Cash and cash equivalents                      $11,702            $9,079
    Marketable securities                           65,956            54,458
    Inventory                                       73,360            54,021
    Other assets                                    10,330             6,306
    Property and equipment, net                     34,753            23,426
      Total assets                                $196,101          $147,290

    Liabilities and Stockholders' Equity
    Accounts payable and accrued
     liabilities                                   $66,476           $57,667
    Other liabilities                               11,416             5,874
    Total stockholders' equity                     118,209            83,749
      Total liabilities and stockholders'
       equity                                     $196,101          $147,290

SOURCE Citi Trends, Inc.

Ed Anderson, Chairman and CEO of Citi Trends, Inc., +1-912-443-3705, or Tripp
Sullivan, Senior Vice President of Corporate Communications, Inc., +1-615-254-3376,
for Citi Trends, Inc.
http://www.cititrends.com

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