SAVANNAH, Ga.--(BUSINESS WIRE)--
Citi Trends, Inc. (NASDAQ: CTRN) today announced that it expects to
report a net loss in a range of $0.60 to $0.70 per diluted share for the
second quarter ending July 30, 2011.
Citi Trends' sales have continued to be much lower than expected.
Comparable store sales were down 12% in both May and June and are
expected to be down approximately 11% for the full second quarter.
Additionally, the weakness in sales has necessitated higher clearance
markdowns, further contributing to the quarterly loss. In light of the
existing uncertain sales environment, the Company will not undertake to
estimate results for the full fiscal 2011 year at this time.
Commenting on the announcement, David Alexander, Citi Trends' President
and Chief Executive Officer, said, "To respond to the current economic
challenges faced by our customers, we have undertaken a number of
tactical changes in merchandising to attempt to drive sales. In
particular, we analyzed entry price points, price/value relationships
and the number of price points for every major category in every apparel
division. From this analysis, we have already taken steps to lower our
entry price points for a number of very significant, very visible items
such as ladies, girls and boys long denim. In addition, we are reducing
the number of price points in many categories which will allow for much
more impactful price point signage in our stores. For the Holiday
period, we have created a plan for a significant increase in our gift
offering and for the first time we will participate in the Friday after
Thanksgiving in a meaningful way. In addition to these steps, we should
benefit from the fact that the comparisons in the third and fourth
quarters are less challenging."
"Despite the difficult environment that we are currently in, we continue
to be very optimistic about the Company's future. We have a great niche,
a great customer relationship and a very strong balance sheet with
approximately $80 million of cash and investments and no debt. We do
believe, however, that our current sales trend dictates a more
conservative approach to operating costs and capital expenditures. As a
result, for the remainder of 2011 we plan to only open the new stores
for which we have already committed, reducing our projection from
approximately 65 to 70 new stores to 55 to 60 new stores," Mr. Alexander
concluded.
Citi Trends plans to release its complete second quarter results and
hold a conference call on August 17, 2011. The Company reminds investors
of the complexity of accurately assessing future results given the
difficulty in predicting fashion trends, consumer preferences and
general economic conditions and the impact of other business variables.
See "Forward-Looking Statements" below for more information regarding
these uncertainties.
About Citi Trends
Citi Trends, Inc. is a value-priced retailer of urban fashion apparel
and accessories for the entire family. The Company operates 481 stores
located in 27 states. Citi Trends' 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 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 quarterly 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
Chief Financial
Officer
or
David Alexander, 912-443-3924
President and
Chief Executive Officer
Source: Citi Trends, Inc.
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