UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): May 22, 2013

 

Citi Trends, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware

 

000-51315

 

52-2150697

(State or other jurisdiction of incorporation)

 

(Commission File Number)

 

(IRS Employer Identification No.)

 

104 Coleman Boulevard, Savannah, Georgia

 

31408

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code: (912) 236-1561

 

Former name or former address, if changed since last report: Not applicable

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2 below):

 

o           Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o           Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o           Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o           Pre- commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 



 

Item 2.02. Results of Operations and Financial Condition.

 

On May 22, 2013, Citi Trends, Inc. (the “Company”) issued a press release reporting its financial results for its first quarter ended May 4, 2013 (the “Earnings Release”). A copy of the Earnings Release is attached to this Current Report on Form 8-K (“Current Report”) as Exhibit 99.1 and the contents of which are incorporated herein solely for purposes of this Item 2.02 disclosure.

 

The information in this Item 2.02, including the Earnings Release attached to this Current Report, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section. The information in this Item 2.02, including the Earnings Release, shall not be incorporated by reference into any filings under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit No.

 

Description

 

 

 

99.1

 

Earnings Release dated May 22, 2013

 

2



 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

CITI TRENDS, INC.

 

 

Date: May 22, 2013

 

 

 

By:

/s/ Bruce D. Smith

 

 

Name:

Bruce D. Smith

 

 

Title:

Chief Financial Officer

 

3



 

Exhibit Index

 

Exhibit No.

 

Description

 

 

 

99.1

 

Earnings Release dated May 22, 2013

 

4


Exhibit 99.1

 

CITI TRENDS ANNOUNCES FIRST QUARTER 2013 RESULTS

 

First quarter 2013 earnings per share of $0.42 compared with $0.69 last year

 

SAVANNAH, GA (May 22, 2013) — Citi Trends, Inc. (NASDAQ: CTRN) today reported results for the first quarter of fiscal 2013.

 

Financial Highlights — First quarter ended May 4, 2013

 

Total sales in the first quarter ended May 4, 2013 decreased 8.0% to $181.8 million compared with $197.7 million in the first quarter ended April 28, 2012.  Comparable store sales decreased 4.1% in the first quarter on a comparable weeks basis.  Net income was $6.2 million, or $0.42 per diluted share, in the first quarter of 2013, compared with $10.1 million, or $0.69 per diluted share, in last year’s first quarter.

 

Ed Anderson, Chairman and Chief Executive Officer, commented, “Our first quarter began slowly, but sales started to improve once the weather turned warm after Easter.  Comparable store sales on a comparable weeks basis were down 7% in February and 8% in March, before increasing 9% in April.  In addition, comparable store sales are up 2% in the first two weeks of the second quarter.”

 

Each year, the Company’s stores are closed on Easter Sunday, and with the shift in the timing of Easter this year to fiscal March from April last year, comparable store sales were negatively affected in March by approximately 2% and positively affected in April by approximately 3%.

 

The Company opened one store and closed six stores in the first quarter of 2013, resulting in a total store count of 508 at the end of the quarter.

 

Investor Conference Call and Webcast

 

Citi Trends will host a conference call today at 9:00 a.m. ET.  The number to call for the live interactive teleconference is (212) 231-2921.  A replay of the conference call will be available until May 29, 2013, by dialing (402) 977-9140 and entering the passcode, 21645978.  The live broadcast of Citi Trends’ quarterly conference call will be available online beginning today at 9:00 a.m. ET at the Company’s website, www.cititrends.com, as well as at http://ir.cititrends.com/events.cfm.  The online replay will follow shortly after the call and continue through May 29, 2013.

 

 



 

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.  After closing two stores since the end of the first quarter, the Company currently operates 506 stores located in 29 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.

 

Contact:

Bruce Smith

Ed Anderson

 

Chief Financial Officer

Chief Executive Officer

 

(912) 443-2075

(912) 443-3705

 



 

CITI TRENDS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

(in thousands, except per share data)

 

 

 

Thirteen Weeks Ended

 

Thirteen Weeks Ended

 

 

 

May 4, 2013

 

April 28, 2012

 

 

 

(unaudited)

 

(unaudited)

 

Net sales

 

$

181,828

 

$

197,694

 

Cost of sales

 

114,505

 

123,028

 

Gross profit

 

67,323

 

74,666

 

Selling, general and administrative expenses

 

51,908

 

52,669

 

Depreciation and amortization

 

5,595

 

6,145

 

Asset impairment

 

27

 

 

Income from operations

 

9,793

 

15,852

 

Interest income

 

68

 

62

 

Interest expense

 

(47

)

(49

)

Income before income taxes

 

9,814

 

15,865

 

Income tax expense

 

3,650

 

5,761

 

Net income

 

$

6,164

 

$

10,104

 

 

 

 

 

 

 

Basic net income per common share

 

$

0.42

 

$

0.69

 

Diluted net income per common share

 

$

0.42

 

$

0.69

 

 

 

 

 

 

 

Weighted average shares used to compute basic net income per share

 

14,752

 

14,636

 

Weighted average shares used to compute diluted net income per share

 

14,753

 

14,637

 

 

CITI TRENDS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(in thousands)

 

 

 

May 4, 2013

 

April 28, 2012

 

 

 

(unaudited)

 

(unaudited)

 

Assets:

 

 

 

 

 

Cash and cash equivalents

 

$

64,065

 

$

63,964

 

Short-term investment securities

 

16,249

 

1,637

 

Inventory

 

108,509

 

115,008

 

Prepaid and other current assets

 

17,269

 

17,749

 

Property and equipment, net

 

69,202

 

85,622

 

Long-term investment securities

 

1,769

 

18,088

 

Other noncurrent assets

 

4,575

 

3,022

 

Total assets

 

$

281,638

 

$

305,090

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity:

 

 

 

 

 

Accounts payable

 

$

40,498

 

$

59,996

 

Accrued liabilities

 

26,325

 

24,628

 

Other current liabilities

 

3,101

 

1,975

 

Noncurrent liabilities

 

9,513

 

12,218

 

Total liabilities

 

79,437

 

98,817

 

 

 

 

 

 

 

Total stockholders’ equity

 

202,201

 

206,273

 

Total liabilities and stockholders’ equity

 

$

281,638

 

$

305,090

 

 

3