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August 24, 2005 at 4:05 PM EDT

Citi Trends, Inc. Announces Fiscal 2005 Second Quarter Results

SAVANNAH, Ga., Aug 24, 2005 /PRNewswire-FirstCall via COMTEX/ -- Citi Trends, Inc. (Nasdaq: CTRN) today reported results for the thirteen and twenty-six weeks ended July 30, 2005.

Quarter Ended July 30, 2005

Total net sales for the thirteen weeks ended July 30, 2005 increased by 38.2% to $59.4 million from $43.0 million reported in the prior year. Comparable store sales increased 11.5% for the thirteen weeks ended July 30, 2005 compared to 0.3% in the thirteen weeks ended July 31, 2004. Total net sales for the twenty-six weeks ended July 30, 2005 increased by 35.1% to $123.1 million from $91.1 million reported in the prior year. Comparable store sales increased 9.0% for the twenty-six weeks ended July 30, 2005 compared to 2.0% in the twenty-six weeks ended July 31, 2004. Relocated stores and expanded stores are included in the comparable store sales results.

The Company reported net income for the thirteen weeks ended July 30, 2005 of approximately $381,000, or $0.03 per diluted share, compared to net loss of approximately $41,000 or $0.00 per diluted share in the thirteen weeks ended July 31, 2004. The Company reported net income for the twenty-six weeks ended July 30, 2005 of $3.6 million, or $0.30 per diluted share, compared to net income of $2.2 million or $0.20 per diluted share in the twenty-six weeks ended July 31, 2004.

The Company paid a one-time fee in the second quarter of $1.2 million pre- tax, or $0.05 per diluted share, to Hampshire Equity Partners to terminate its management consulting agreement with the Company, as previously disclosed by the Company in the prospectus for its initial public offering. The fee is included in the net income results reported above.

For fiscal 2005, the Company plan was to open 40 new stores. In the twenty-six weeks ended July 30, 2005, the Company opened 21 new stores and is on plan for store openings for the remainder of the year.

Fiscal 2005 EPS Outlook

The Company anticipates full year diluted earnings per share of between $0.80 and $0.83 based on 13.4 million diluted shares outstanding. 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.

A one-hour conference call will be held on August 25, 2005 at 10:00 am EST to discuss second quarter results and answer questions. To access the conference call, listeners should dial 800-218-8862. International callers should dial 303-262-2211. For those unable to listen at that time, a replay of the call will be available through September 1, 2005 at 800-405-2236 for domestic callers or 303-590-3000 for international callers. The pass code for the replay is 11037385.

The call will be broadcast live over the Internet via http://ir.cititrends.com/medialist.cfm. For those who are unavailable to listen to the live broadcast, a replay will be available shortly after the call on the above web site for 60 days.

Citi Trends, Inc. is a value-priced retailer of urban fashion apparel and accessories for the entire family. The Company currently operates 221 stores located in 12 states in the South, Southeast and Mid-Atlantic region, and our website address is http://www.cititrends.com.

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.

CTRN - E

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

                                                     Thirteen Weeks Ended
                                                July 30, 2005   July 31, 2004
                                                   (unaudited)     (unaudited)
    Net sales                                          59,449          43,011
    Gross profit                                       21,767          14,916
    Selling, general and administrative expenses       21,271          14,806
    Income from operations                                496             110
    Net income                                            381             (41)

    Net income per share, basic                          0.03            0.00
    Net income per share, diluted                        0.03            0.00

    Weighted average shares used to compute net
     income per share, basic                       11,925,307       9,310,600
    Weighted average shares used to compute net
     income per share, diluted                     13,587,400      10,952,838

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

                                                     Twenty-six Weeks Ended
                                                July 30, 2005   July 31, 2004
                                                  (unaudited)      (unaudited)
    Net sales                                         123,066          91,080
    Gross profit                                       46,900          33,950
    Selling, general and administrative expenses       41,029          30,026
    Income from operations                              5,871           3,924
    Net income                                          3,646           2,198

    Net income per share, basic                          0.34            0.24
    Net income per share, diluted                        0.30            0.20

    Weighted average shares used to compute net
     income per share, basic                       10,610,154       9,308,000
    Weighted average shares used to compute net
     income per share, diluted                     12,230,180      10,928,216


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

                                              July 30, 2005    July 31, 2004
                                                (unaudited)      (unaudited)
    Assets
    Cash and cash equivalents                       30,760            5,894
    Marketable securities                           12,013               --
    Inventory                                       50,064           36,936
    Other assets                                     7,279            5,715
    Property and equipment, net                     20,129           15,276
        Total assets                               120,245           63,821
    Liabilities and stockholders' equity
    Borrowings under line of credit                     --            5,660
    Accounts payable and accrued liabilities        43,713           29,661
    Other liabilities                                7,414            9,769
    Total stockholders' equity                      69,118           18,731
    Total liabilities and stockholders' equity     120,245           63,821

SOURCE Citi Trends, Inc.

Tom Stoltz, Chief Financial Officer, +1-912-443-2075, tstoltz@cititrends.com, or Ed
Anderson, Chief Executive Officer, +1-912-443-3075, eanderson@cititrends.com, both of
Citi Trends, Inc.; or General: Marilynn Meek, +1-212-827-3773, or Analysts: Susan
Garland, +1-212-827-3775, both of Financial Relations Board for Citi Trends, Inc.
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