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
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.
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