SAVANNAH, Ga.--(BUSINESS WIRE)--
Citi Trends, Inc. (NASDAQ: CTRN) today reported unaudited sales results
for the fourth quarter and fiscal year ended February 1, 2014.
The Company's 2013 fiscal year contained 52 weeks, while the 2012 fiscal
year contained 53 weeks. Accordingly, the comparison of total sales
between fiscal years is affected by the extra week of sales at the
beginning of fiscal 2012. Total sales in fiscal 2013 decreased 5.0% to
$622.2 million compared with $654.7 million in fiscal 2012, with the
extra week at the beginning of last year contributing approximately $21
million. For comparable store sales, the Company is reporting on a
comparable weeks basis (i.e. the 52 weeks ended February 1, 2014
compared to the 52 weeks ended February 2, 2013). Comparable store sales
on a comparable weeks basis decreased 1.6% for the year.
The Company's 2013 fiscal fourth quarter contained 13 weeks, while the
2012 fiscal fourth quarter contained 14 weeks. Accordingly, the
comparison of total sales between quarters is affected by an extra week
of sales at the beginning of the fourth quarter of fiscal 2012. Total
sales in fiscal 2013's fourth quarter decreased 10.5% to $157.2 million
compared with $175.7 million in last year's fourth quarter, with the
extra week at the beginning of fiscal 2012's fourth quarter contributing
approximately $12 million to total sales. For comparable store sales,
the Company is reporting on a comparable weeks basis (i.e. the 13 weeks
ended February 1, 2014 compared to the 13 weeks ended February 2, 2013).
Comparable store sales on a comparable weeks basis decreased 3.5% for
the quarter. By month, comparable store sales on a comparable weeks
basis increased 0.4% in November and decreased 4.6% and 6.5% in December
and January, respectively.
Ed Anderson, Chairman and Chief Executive Officer, commented, "We are
disappointed with the 3.5% comparable store sales decrease in the fourth
quarter. We had expected more sales due to the positive momentum from
the previous two quarters as well as a slight sales increase in November.
The hanging apparel businesses - ladies, men's and kids - all decreased
in the fourth quarter. Our strategy for cold weather product,
particularly in ladies apparel, proved to be too conservative and we
missed sales as a result. In addition, winter storms caused a large part
of the January sales decrease.
There were several positives in the quarter. The accessories, including
footwear, and home businesses continued to deliver sales increases. Cost
of sales as a percentage of sales improved approximately 400 basis
points due to better inventory management, which resulted in fewer
clearance markdowns. Also, despite sales being below expectations, we
ended the quarter with 10% less inventory than a year ago.
We believe we are positioned for a successful Spring selling season, and
we continue to feel very good about our progress at Citi Trends."
Investor Conference Call and Webcast
The Company will report complete financial results for its fourth
quarter and fiscal 2013 before the market opens on March 14, 2014. Citi
Trends will host a conference call on the same day at 9:00 a.m. ET. The
number to call for the live interactive teleconference is
(212) 231-2908. A replay of the conference call will be available until
March 21, 2014, by dialing (402) 977-9140 and entering the passcode,
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/events.cfm,
on March 14, 2014 beginning at 9:00 a.m. ET. The online replay will
follow shortly after the call and will be available for replay for one
During the conference call, the Company may discuss and answer questions
concerning business and financial developments and trends after
quarter-end. 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. The Company operates 505 stores
located in 29 states. Citi Trends' website address is www.cititrends.com.
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. Any
forward-looking statements by the Company, with respect to earnings
guidance or otherwise, are intended to speak only as of the date such
statements are made. 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.
Bruce Smith, 912-443-2075
Ed Anderson, 912-443-3705
Chairman & Chief
Source: Citi Trends, Inc.
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