Citi Trends, Inc. 102 Fahm Street Savannah, GA 31401 May 17, 2005 Ladies and Gentlemen: In fiscal 2004 Citi Trends, Inc. (the "Company") granted stock options at an exercise price below the deemed fair market value for such options. The excess value of these grants amounts to $188,095. The Company has deemed this compensation charge to be immaterial and therefore has passed on any adjustment to the financial statements. KPMG, our independent auditor, has conferred with our conclusion by consenting to the inclusion of their audit opinion in the filing of Amendment No. 4 to our Form S-1. Very truly yours, Citi Trends, Inc. /s/ R. Edward Anderson /s/ Tom Stoltz - ---------------------- -------------- R. Edward Anderson Tom Stoltz Chief Executive Officer Chief Financial Officer cc: Tracy Noll, Chairman, Audit Committee