UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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| Item 8.01. | Other Events |
On January 14, 2023, Citi Trends, Inc. (the “Company”) experienced a disruption of its back office and distribution center IT systems, which was due to what is known as Hive ransomware. On January 26, 2023, the U.S. Department of Justice, acting with the FBI, announced the successful disruption of the Hive network. Soon thereafter, the FBI provided tools that the Company began using to restore its affected systems. The Company’s stores and financial system of record were unaffected and remained fully operational. Upon discovering the disruption, the Company immediately activated its incident response and business continuity plan to support the restoration of affected systems. The Company can confirm that sensitive customer data is not retained on its systems.
At this time, the Company’s Information Technology team and its incident response partners have restored affected critical operating systems. The Company is working to minimize the effect on operations and financial results as the flow of merchandise to stores began to normalize during the third week of February 2023. The impact of this disruption was not material to the Company’s fourth quarter fiscal 2022 financial results and, while the Company’s investigation and remediation efforts remain ongoing, it is not expected to be material to the Company’s full year fiscal 2023 financial results.
Forward-Looking Statements
This Current Report on Form 8-K includes statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties, and assumptions as to future events that may not prove to be accurate. These statements include, but are not limited to, express or implied forward-looking statements relating to our expectations regarding the disruption and the impact of the disruption on our business, operations and financial results. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied include the ongoing assessment of the disruption, legal, reputational and financial risks resulting from such disruption, the effectiveness of business continuity plans during the disruption, and the other factors discussed in our most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable law.
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: February 23, 2023 | By: | /s/ Heather L. Plutino |
| Name: | Heather L. Plutino | |
| Title: | Chief Financial Officer | |