Citi Trends Provides Business Update
Fully repaid outstanding borrowings under revolving credit facility
Reaffirms prior third quarter 2020 guidance
The Company today announced that it has fully repaid the
$41.6 millionof borrowings that were outstanding under its revolving credit facility. The draw down on the revolving credit facility in March 2020was a proactive measure to enhance the Company’s liquidity position in response to the novel coronavirus (“COVID-19”) pandemic.
The Company today announced the reinstatement of its previously authorized
$30 millionshare repurchase program. Repurchases under this program were temporarily suspended in March 2020due to the economic uncertainty stemming from the COVID-19 pandemic. The Company expects to fund the share repurchase program from cash on hand.
Chief Executive Officer Comments
Makuen concluded, “As we exited the traditional back-to-school selling season, we are encouraged by more normalized trends and we are now turning our focus to readying our fleet for the important holiday selling season with an emphasis on extreme value gifts for Christmas and Kwanzaa.”
The Company reaffirms its previously announced financial guidance for fiscal 2020 third quarter of estimating a comparable store sales range of negative mid-single digits to flat with continued gross margin expansion building on momentum from the second quarter. This estimate continues to be subject to potential consumer and marketplace volatility due to the COVID-19 pandemic and therefore may change as the quarter progresses.
The Company today announced that representatives of the Company will host one-on-one investor meetings at the 3rd Annual
All statements other than historical facts contained in this news release, including statements regarding the Company’s future financial results and position, business policy and plans, objectives of management for future operations and our intentions and ability to pay dividends and complete any share repurchase authorizations, are forward-looking statements that are subject to material risks and uncertainties. The words "believe," "may," "could," "plans," "estimate," "continue," "anticipate," "intend," "expect," “upcoming,” “trend” and similar expressions, as they relate to the Company, are intended to identify forward-looking statements, although not all forward-looking statements contain such language. Statements with respect to earnings, sales or new store guidance are forward-looking statements. Investors are cautioned that any such forward-looking statements are subject to the finalization of the Company’s quarter-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 our Annual Reports and Quarterly Reports on Forms 10-K and 10-Q, respectively, and any amendments thereto, filed with the