[Executive Summary & Company Overview](index=1&type=section&id=Executive%20Summary%20%26%20Company%20Overview) Citi Trends announced its Q4 and full-year FY2023 results, with Q4 total sales of $215.2 million and diluted EPS of $0.42, ending FY2023 with $155 million in liquidity, including $80 million cash and no debt, and projecting mid-single-digit comparable store sales growth for FY2024 [Introduction and Key Highlights](index=1&type=section&id=Introduction%20and%20Key%20Highlights) Citi Trends reported its Q4 and full-year FY2023 financial results, highlighting total sales, diluted EPS, and a strong liquidity position with a positive outlook for FY2024 comparable store sales Key Financial Highlights | Metric | Amount (million USD) | | :--- | :--- | | **Q4 2023** | | | Total Sales | 215.2 | | Diluted EPS | 0.42 | | Adjusted Diluted EPS | 0.53 | | **FY 2023** | | | Total Sales | 747.9 | | Year-End Liquidity | 155 | | Year-End Cash | 80 | | **FY 2024 Outlook** | | | Comparable Store Sales Growth | Mid-single-digit | | Q1 2024 YTD Comparable Store Sales Trend | Consistent with Outlook | [About Citi Trends](index=3&type=section&id=About%20Citi%20Trends) Citi Trends is a leading specialty value retailer serving African American and multicultural families across 33 states with 602 stores - Citi Trends is a specialty value retailer primarily serving African American and multicultural families in the United States, offering apparel, accessories, and home trend merchandise[15](index=15&type=chunk) Operational Footprint | Metric | Value | | :--- | :--- | | Number of Operating Stores | 602 | | Number of States Covered | 33 | [Fiscal 2023 Financial Performance](index=1&type=section&id=Fiscal%202023%20Financial%20Performance) The company's FY2023 financial performance saw a decline in total sales and comparable store sales, resulting in operating and net losses, despite a strong liquidity position at year-end [Fourth Quarter 2023 Financial Highlights](index=1&type=section&id=Fourth%20Quarter%202023%20Financial%20Highlights) Q4 2023 total sales increased by 2.7% to $215.2 million, including an extra week's contribution, while comparable store sales declined, and both operating and net income decreased year-over-year Q4 2023 Financial Summary | Metric | Q4 2023 (million USD) | Q4 2022 (million USD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Sales | 215.2 | 209.5 | +2.7% | | Extra Week Sales Contribution | 11.2 | - | - | | Comparable Store Sales (13 Weeks) | -1.5% (YoY) | - | - | | Gross Margin | 39.1% | 39.5% | -0.4 pp | | Operating Income | 3.9 | 7.4 | -47.2% | | Adjusted Operating Income | 5.1 | 7.5 | -31.9% | | Net Income | 3.6 | 6.6 | -45.5% | | Adjusted Net Income | 4.4 | 6.8 | -35.2% | | Diluted EPS | 0.42 | 0.81 | -48.1% | | Adjusted Diluted EPS | 0.53 | 0.83 | -36.1% | | Adjusted EBITDA | 10.0 | 12.3 | -18.7% | [Full Year 2023 Financial Highlights](index=1&type=section&id=Full%20Year%202023%20Financial%20Highlights) Full-year FY2023 total sales decreased by 5.9% to $747.9 million, with a 6.8% decline in comparable store sales, leading to an operating loss and net loss, while year-end cash stood at $79.7 million with no debt FY 2023 Financial Summary | Metric | FY 2023 (million USD) | FY 2022 (million USD) | Change (%) | | :--- | :--- | :--- | :--- | | Total Sales | 747.9 | 795.0 | -5.9% | | Comparable Store Sales (52 Weeks) | -6.8% (YoY) | - | - | | Gross Margin | 38.1% | 39.1% | -1.0 pp | | Adjusted Gross Margin | 38.2% | 39.1% | -0.9 pp | | Operating Loss | (19.5) | 75.3 | N/A | | Adjusted Operating Loss | (17.5) | 11.4 | N/A | | Net Loss | (12.0) | 58.9 | N/A | | Adjusted Net Loss | (10.5) | 9.4 | N/A | | Diluted EPS | (1.46) | 7.17 | N/A | | Adjusted Diluted EPS | (1.28) | 1.14 | N/A | | Adjusted EBITDA | 1.5 | 32.0 | -95.3% | - In FY2023, the company opened **5 new stores**, remodeled **15 stores**, and closed **14 stores**, ending the year with **602 stores**[7](index=7&type=chunk) - Year-end cash was **$79.7 million**, with **no debt** and an **undrawn $75 million credit facility**[7](index=7&type=chunk) - Year-end inventory increased by **23%** year-over-year, primarily due to prior year under-inventory, strategic category rebuilding, and early receipts for tax refund season and an earlier Easter, with Q1 2024 end-of-quarter inventory expected to show low single-digit growth compared to Q1 2023[7](index=7&type=chunk) [CEO Commentary on Performance](index=1&type=section&id=CEO%20Commentary%20on%20Performance) CEO David Makuen noted that Q4 and full-year results met guidance, driven by strong holiday performance and strategic inventory rebuilding, positioning the company with robust liquidity for FY2024 and positive Q1 comparable store sales trends - Fourth quarter and full-year results were in line with company guidance, with a positive response to the holiday “Ready. Set. Gift!” campaign[6](index=6&type=chunk) - Comparable store sales improved in targeted product categories through inventory rebuilding efforts[6](index=6&type=chunk) - The company entered 2024 with a strong financial position, boasting **$155 million in total liquidity**, including approximately **$80 million in year-end cash**[8](index=8&type=chunk) - Mid-quarter Q1 comparable store sales showed positive growth and continuous improvement from prior quarters, driven by increased traffic and conversion rates[8](index=8&type=chunk) [Capital Management & Liquidity](index=1&type=section&id=Capital%20Management%20%26%20Liquidity) The company maintained a strong liquidity position at the end of FY2023 with significant cash reserves and no debt, while also having remaining authorization for its share repurchase program [Capital Return Program Update](index=2&type=section&id=Capital%20Return%20Program%20Update) No common stock was repurchased during Q4 FY2023, leaving $50 million available under the company's share repurchase program at year-end - No common stock was repurchased during the fourth quarter of fiscal 2023[9](index=9&type=chunk) Share Repurchase Program Status | Metric | Amount (million USD) | | :--- | :--- | | Remaining Available for Share Repurchase Program | 50.0 | [Liquidity Position](index=1&type=section&id=Liquidity%20Position) At the end of FY2023, the company reported a robust liquidity position of $155 million, comprising approximately $80 million in cash and no outstanding debt or borrowings under its $75 million credit facility Year-End Liquidity Summary | Metric | Amount (million USD) | | :--- | :--- | | FY 2023 Year-End Total Liquidity | 155 | | FY 2023 Year-End Cash | 80 | | Debt Status | No Debt | | Credit Facility Utilization | No Borrowings ($75 million credit facility) | [Fiscal 2024 Outlook & Strategic Initiatives](index=1&type=section&id=Fiscal%202024%20Outlook%20%26%20Strategic%20Initiatives) The company projects mid-single-digit comparable store sales growth for FY2024, with anticipated gross margin expansion and strategic store network optimization initiatives [Fiscal 2024 Outlook](index=2&type=section&id=Fiscal%202024%20Outlook) For FY2024, the company anticipates mid-single-digit comparable store sales growth, gross margin expansion of 75 to 100 basis points, and SG&A expense growth of 2.5% to 3.0%, with EBITDA projected between $4 million and $10 million FY 2024 Financial Projections | Metric | FY 2024 Outlook | | :--- | :--- | | Comparable Store Sales Growth | Mid-single-digit | | Gross Margin Expansion | Approximately 75 to 100 basis points | | SG&A Expense Growth | Approximately 2.5% to 3.0% | | EBITDA* | $4 million to $10 million | [Operational & Strategic Initiatives](index=2&type=section&id=Operational%20%26%20Strategic%20Initiatives) In FY2024, the company plans to open up to 5 new stores, remodel approximately 40, and close 10 to 15 underperforming locations to optimize its store network, with capital expenditures estimated at $20 million - The company plans to open up to **5 new stores**, remodel approximately **40 stores**, and close **10 to 15 underperforming stores** as part of ongoing store optimization[14](index=14&type=chunk) FY 2024 Operational Plans | Metric | FY 2024 Plan | | :--- | :--- | | New Store Openings | Up to 5 stores | | Store Remodels | Approximately 40 stores | | Store Closures | 10 to 15 stores | | Projected Year-End Store Count | Approximately 595 stores | | Full-Year Capital Expenditures | Approximately $20 million | [Q1 2024 YTD Performance](index=1&type=section&id=Q1%202024%20YTD%20Performance) As of mid-Q1, comparable store sales show positive growth and continuous improvement, driven by increased traffic and conversion rates, aligning with the company's FY2024 outlook - Comparable store sales trends for Q1 2024 year-to-date are consistent with the full-year outlook[2](index=2&type=chunk) - Mid-quarter Q1 comparable store sales showed positive growth and continuous improvement from prior quarters, primarily due to increased traffic and conversion rates[8](index=8&type=chunk) [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including statements of operations and balance sheets, for the specified periods, detailing key financial performance and position metrics [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section provides unaudited condensed consolidated statements of operations for Q4 and full-year FY2023, detailing net sales, cost of sales, SG&A, depreciation, asset impairment, operating (loss) income, interest income/expense, and net (loss) income Q4 2023 Condensed Consolidated Statements of Operations (Unaudited) | Metric (thousand USD) | February 3, 2024 | January 28, 2023 | | :--- | :--- | :--- | | Net Sales | 215,179 | 209,461 | | Cost of Sales | (130,997) | (126,681) | | Selling, General and Administrative Expenses | (74,527) | (70,578) | | Depreciation | (4,850) | (4,802) | | Asset Impairment | (873) | — | | Operating Income | 3,931 | 7,400 | | Interest Income | 1,070 | 830 | | Interest Expense | (78) | (76) | | Net Income | 3,551 | 6,637 | | Diluted EPS | 0.42 | 0.81 | FY 2023 Condensed Consolidated Statements of Operations (Unaudited) | Metric (thousand USD) | February 3, 2024 | January 28, 2023 | | :--- | :--- | :--- | | Net Sales | 747,941 | 795,011 | | Cost of Sales | (462,824) | (484,022) | | Selling, General and Administrative Expenses | (284,529) | (279,177) | | Depreciation | (18,990) | (20,595) | | Asset Impairment | (1,051) | — | | Gain on Sale-Leaseback | — | 64,088 | | Operating (Loss) Income | (19,454) | 75,305 | | Interest Income | 3,874 | 1,034 | | Interest Expense | (306) | (306) | | Net (Loss) Income | (11,979) | 58,892 | | Diluted (Loss) EPS | (1.46) | 7.17 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the unaudited condensed consolidated balance sheets as of February 3, 2024, and January 28, 2023, outlining cash, inventory, property and equipment, operating lease right-of-use assets, total assets, total liabilities, and total stockholders' equity Condensed Consolidated Balance Sheets (Unaudited) | Metric (thousand USD) | February 3, 2024 | January 28, 2023 | | :--- | :--- | :--- | | Cash and Cash Equivalents | 79,706 | 103,495 | | Inventory | 130,432 | 105,794 | | Prepaid and Other Current Assets | 10,838 | 12,976 | | Property and Equipment, Net | 56,231 | 60,106 | | Operating Lease Right-of-Use Assets | 231,281 | 257,195 | | Deferred Tax Assets | 5,105 | 2,893 | | Other Non-Current Assets | 5,128 | 1,797 | | **Total Assets** | **518,721** | **544,257** | | Accounts Payable | 100,366 | 80,670 | | Accrued Liabilities | 23,312 | 26,876 | | Current Operating Lease Liabilities | 45,842 | 52,661 | | Other Current Liabilities | 384 | 344 | | Non-Current Operating Lease Liabilities | 188,810 | 214,939 | | Other Non-Current Liabilities | 2,301 | 2,322 | | **Total Liabilities** | **361,015** | **377,812** | | **Total Stockholders' Equity** | **157,706** | **166,445** | | **Total Liabilities and Stockholders' Equity** | **518,721** | **544,257** | [Non-GAAP Financial Measures Reconciliation](index=2&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section provides reconciliations of GAAP to non-GAAP financial measures, including adjusted gross margin, operating income, net income, EPS, and EBITDA, which are used to better reflect ongoing operational performance [Explanation of Non-GAAP Measures](index=2&type=section&id=Explanation%20of%20Non-GAAP%20Measures) The company utilizes non-GAAP financial measures like adjusted gross margin, operating income, net income, EPS, and EBITDA to provide a clearer view of ongoing operational performance and enhance comparability, though a full reconciliation for forward-looking non-GAAP guidance is not feasible - The company uses non-GAAP measures such as adjusted gross margin, operating income, net income, EPS, and EBITDA to reflect ongoing operational performance and improve comparability[22](index=22&type=chunk) - A complete reconciliation for forward-looking non-GAAP financial measures used in the 2024 guidance cannot be provided without unreasonable effort due to the difficulty in predicting certain adjustment items[13](index=13&type=chunk) [Fourth Quarter 2023 Non-GAAP Reconciliation](index=6&type=section&id=Fourth%20Quarter%202023%20Non-GAAP%20Reconciliation) This section details the reconciliation of Q4 2023 GAAP financial measures to adjusted non-GAAP measures, including operating income, net income, diluted EPS, and EBITDA, with adjustments primarily for asset impairment, cyber incident expenses, and other non-recurring items Q4 2023 Adjusted Operating (Loss) Income Reconciliation (thousand USD) | Metric | February 3, 2024 | January 28, 2023 | | :--- | :--- | :--- | | Operating (Loss) Income | 3,931 | 7,400 | | Asset Impairment | 873 | — | | Cyber Incident Expenses | — | 142 | | Other Non-Recurring Expenses | 334 | — | | **Adjusted Operating (Loss) Income** | **5,139** | **7,542** | Q4 2023 Adjusted Net (Loss) Income Reconciliation (thousand USD) | Metric | February 3, 2024 | January 28, 2023 | | :--- | :--- | :--- | | Net (Loss) Income | 3,551 | 6,637 | | Asset Impairment | 873 | — | | Cyber Incident Expenses | — | 142 | | Other Non-Recurring Expenses | 334 | — | | Tax Impact | (336) | (26) | | **Adjusted Net (Loss) Income** | **4,422** | **6,753** | Q4 2023 Adjusted Diluted (Loss) EPS Reconciliation | Metric | February 3, 2024 | January 28, 2023 | | :--- | :--- | :--- | | Diluted (Loss) EPS | 0.42 | 0.81 | | Asset Impairment | 0.10 | — | | Cyber Incident Expenses | — | 0.02 | | Other Non-Recurring Expenses | 0.04 | — | | Tax Impact | (0.04) | — | | **Adjusted Diluted (Loss) EPS** | **0.53** | **0.83** | Q4 2023 Adjusted EBITDA Reconciliation (thousand USD) | Metric | February 3, 2024 | January 28, 2023 | | :--- | :--- | :--- | | Net (Loss) Income | 3,551 | 6,637 | | Interest Income | (1,070) | (830) | | Interest Expense | 78 | 76 | | Income Tax (Benefit) Expense | 1,372 | 1,517 | | Depreciation | 4,850 | 4,802 | | Asset Impairment | 873 | — | | Cyber Incident Expenses | — | 142 | | Other Non-Recurring Expenses | 334 | — | | **Adjusted EBITDA** | **9,989** | **12,344** | [Fiscal Year 2023 Non-GAAP Reconciliation](index=7&type=section&id=Fiscal%20Year%202023%20Non-GAAP%20Reconciliation) This section provides a detailed reconciliation of full-year FY2023 GAAP financial measures to adjusted non-GAAP measures, including operating (loss) income, gross margin, net (loss) income, diluted (loss) EPS, and EBITDA, with adjustments for insurance proceeds, asset impairment, cyber incident expenses, other non-recurring items, and sale-leaseback gains FY 2023 Adjusted Operating (Loss) Income Reconciliation (thousand USD) | Metric | February 3, 2024 | January 28, 2023 | | :--- | :--- | :--- | | Operating (Loss) Income | (19,454) | 75,305 | | Insurance Proceeds | (1,188) | — | | Asset Impairment | 1,051 | — | | Cyber Incident Expenses | 1,723 | 142 | | Other Non-Recurring Expenses | 334 | — | | Gain on Sale-Leaseback | — | (64,088) | | **Adjusted Operating (Loss) Income** | **(17,533)** | **11,359** | FY 2023 Adjusted Gross Margin Reconciliation | Metric | February 3, 2024 | January 28, 2023 | | :--- | :--- | :--- | | Net Sales (thousand USD) | 747,941 | 795,011 | | Cost of Sales (thousand USD) | (462,824) | (484,022) | | Gross Profit (thousand USD) | 285,117 | 310,989 | | Gross Margin | 38.1% | 39.1% | | Cyber Incident Expenses (thousand USD) | 513 | — | | **Adjusted Gross Profit (thousand USD)** | **285,630** | **310,989** | | **Adjusted Gross Margin** | **38.2%** | **39.1%** | FY 2023 Adjusted Net (Loss) Income Reconciliation (thousand USD) | Metric | February 3, 2024 | January 28, 2023 | | :--- | :--- | :--- | | Net (Loss) Income | (11,979) | 58,892 | | Insurance Proceeds | (1,188) | — | | Asset Impairment | 1,051 | — | | Cyber Incident Expenses | 1,723 | 142 | | Other Non-Recurring Expenses | 334 | — | | Gain on Sale-Leaseback | — | (64,088) | | Tax Impact | (472) | 14,416 | | **Adjusted Net (Loss) Income** | **(10,530)** | **9,362** | FY 2023 Adjusted Diluted (Loss) EPS Reconciliation | Metric | February 3, 2024 | January 28, 2023 | | :--- | :--- | :--- | | Diluted (Loss) EPS | (1.46) | 7.17 | | Insurance Proceeds | (0.14) | — | | Asset Impairment | 0.13 | — | | Cyber Incident Expenses | 0.21 | 0.02 | | Other Non-Recurring Expenses | 0.04 | — | | Gain on Sale-Leaseback | — | (7.80) | | Tax Impact | (0.06) | 1.75 | | **Adjusted Diluted (Loss) EPS** | **(1.28)** | **1.14** | FY 2023 Adjusted EBITDA Reconciliation (thousand USD) | Metric | February 3, 2024 | January 28, 2023 | | :--- | :--- | :--- | | Net (Loss) Income | (11,979) | 58,892 | | Interest Income | (3,874) | (1,034) | | Interest Expense | 306 | 306 | | Income Tax (Benefit) Expense | (3,907) | 17,141 | | Depreciation | 18,990 | 20,595 | | Insurance Proceeds | (1,188) | — | | Asset Impairment | 1,051 | — | | Cyber Incident Expenses | 1,723 | 142 | | Other Non-Recurring Expenses | 334 | — | | Gain on Sale-Leaseback | — | (64,088) | | **Adjusted EBITDA** | **1,457** | **31,954** | [Additional Information](index=2&type=section&id=Additional%20Information) This section includes important disclosures regarding forward-looking statements, details on the investor conference call and webcast, and contact information for investor relations [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) All non-historical statements in this press release are forward-looking and subject to significant risks and uncertainties, as actual results may differ materially due to various factors including economic conditions, market rates, natural disasters, pandemics, supply chain disruptions, and cybersecurity risks - All statements in this press release that are not historical facts are forward-looking statements, subject to significant risks and uncertainties[16](index=16&type=chunk) - Forward-looking statements are not guarantees of future performance, and actual results may differ materially due to various factors[16](index=16&type=chunk) - Risks and uncertainties include, but are not limited to: general economic conditions (inflation, energy costs, unemployment), changes in market interest rates, natural disasters, pandemic impacts, transportation and distribution delays, freight cost changes, ability to attract and retain employees, merchandise inventory risks, fashion trend changes, consumer confidence, industry competition, cyber disruptions, and litigation[16](index=16&type=chunk) [Investor Conference Call and Webcast](index=2&type=section&id=Investor%20Conference%20Call%20and%20Webcast) Citi Trends hosted a conference call on March 19, 2024, at 9:00 AM ET to discuss its results, with a live webcast available on the company's investor relations website and an archived replay for one year - Citi Trends held a conference call on **March 19, 2024, at 9:00 AM ET**[10](index=10&type=chunk) - A live webcast of the conference call is available on the investor relations section of the company's website, cititrends.com, with a replay accessible for one year[11](index=11&type=chunk) [Contact Information](index=3&type=section&id=Contact%20Information) Investor relations contact information is provided by Tom Filandro and Rachel Schacter of ICR, Inc - Investor Relations contacts: Tom Filandro/Rachel Schacter (ICR, Inc.)[17](index=17&type=chunk) - Contact email: CitiTrendsIR@icrinc.com[17](index=17&type=chunk)

Buffett Loads Up on This Stock Again, Plus CEO Insider Buying frender / iStock via Getty Images In the wake of a media giant’s quarterly report, the Oracle of Omaha is again bolstering his stake in the tracking stocks with some huge insider purchases. Plus, chief executive officers and an activist investor also scooped up some shares in the following companies.A well-known adage reminds us that corporate insiders and 10% owners really only buy shares of a company because they believe the stock price will ...

SAVANNAH, Ga.--(BUSINESS WIRE)--Citi Trends, Inc. (NASDAQ: CTRN) today announced plans to release its earnings for the fourth quarter and full year 2023 before the market opens on Tuesday, March 19, 2024. Citi Trends will host a conference call on the same day at 9:00 a.m. ET. The number to call for the live interactive teleconference is (212) 231-2921. A telephonic replay of the conference call will be available until March 28, 2023, by dialing (800) 633-8284 and entering the passcode, 22029021. The live ...

SAVANNAH, Ga.--(BUSINESS WIRE)--Citi Trends, Inc. (NASDAQ: CTRN) (“Citi Trends” or the “Company”), a leading specialty value retailer of apparel, accessories and home trends for way less spend primarily for African American and multicultural families in the United States, today announced that it will nominate three new independent directors—David Heath, Charles Liu and Michael Kvitko—for election to the Company’s Board of Directors (the “Board”) at the 2024 Annual Meeting of Stockholders (the “2024 Annual M ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 28, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 000-51315 CITI TRENDS, INC. (Exact name of registrant as specified in its charter) Delaware 52-2150697 (State or other jurisdiction of (I.R.S. Employer inco ...

Citi Trends, Inc. (NASDAQ:CTRN) Q3 2023 Results Conference Call November 28, 2023 9:00 AM ET Company Participants Nitza McKee - Senior Associate David Makuen - Chief Executive Officer Heather Plutino - Chief Financial Officer Conference Call Participants Jeremy Hamblin - Craig-Hallum Capital Group Mike Baker - D.A. Davidson Chuck Grom - Gordon Haskett John Lawrence - Benchmark Operator Greetings, and welcome to the Citi Trends Third Quarter 2023 Earnings Conference Call [Operator Instructions]. As a reminde ...

We expect that our operations in the short-term will continue to be influenced by general economic conditions, including the recent inflationary pressures, which are particularly impactful to the communities we serve. Given the macroeconomic environment, we expect low-income families to remain under pressure through the majority of fiscal 2023. In addition, we continue to monitor the impacts on our business of unemployment levels, wage inflation, interest rates, inflation rates, housing costs, energy costs, ...

Financial Data and Key Metrics Changes - Total sales for Q2 2023 were $173.6 million, a decrease of 6.2% compared to Q2 2022, but an 880 basis point acceleration from Q1 2023 [50][26] - Gross margin improved to 38.2%, which is above last year and 150 basis points better than Q1 2023 [17][93] - Operating loss was $7.9 million for the quarter, compared to an operating loss of $3.3 million in Q2 2022 [52] Business Line Data and Key Metrics Changes - Comp store sales decreased by 5.3% compared to last year, but showed significant improvement from Q1 [26] - Notable outperformers included footwear, ladies and men's apparel, and beauty merchandise, benefiting from inventory rebuild efforts [43] Market Data and Key Metrics Changes - The customer base primarily consists of families earning $50,000 or less annually, with many living on $25,000 per year, indicating ongoing inflationary pressures [7] - Improved traffic levels and strong conversion rates were observed, signaling positive customer response to product assortment [6][9] Company Strategy and Development Direction - The company is focused on driving comp store productivity and managing inventory to maximize margins [10][29] - Strategic initiatives include rebuilding inventory in key areas and offering a balanced assortment of price styles to appeal to value-based customers [6][8] - The upgraded ERP system is expected to enhance planning and allocation, driving long-term productivity [24][47] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the second half of the year, anticipating modest improvement for customers despite ongoing economic pressures [40][68] - The company reiterated its guidance for the year, expecting total sales to be in the range of negative mid-single digits to negative low single digits compared to fiscal 2022 [29][53] Other Important Information - The company ended Q2 with liquidity of approximately $141 million, including $65 million in cash and no debt [8][25] - Five new stores were opened, including the first store in L.A. County, with early results being encouraging [51] Q&A Session Summary Question: How is the core customer feeling about managing inflationary pressures? - Management noted that while inflation remains a challenge, there are signs of gradual improvement in customer sentiment, particularly in apparel and footwear categories [34][60] Question: When can benefits from the ERP system be expected? - Management indicated that the ERP system will have a more significant impact in 2024, with some benefits potentially seen in Q4 2023 [36][64] Question: What is the outlook for the second half of the year given economic pressures? - Management acknowledged the impact of rising gas prices and rent but emphasized their focus on controlling internal factors to drive improvement [81] Question: How is the basket trending and what is the breakdown between AURs and units? - The basket has improved in Q2, primarily driven by an increase in units per transaction, indicating positive customer response to lower price points [82] Question: How are remodels performing compared to prior history? - The remodel program is performing well, with a mid- to high single-digit lift in sales observed post-remodel [88]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 29, 2023 OR Commission File Number 000-51315 Delaware 52-2150697 (State or other jurisdiction of (I.R.S. Employer incorpor ...

Citi Trends, Inc. (NASDAQ:CTRN) Q1 2023 Earnings Conference Call May 23, 2023 9:00 AM ET Company Participants David Makuen - Chief Executive Officer Heather Plutino - Chief Financial Officer Nitza McKee - Senior Associate, ICR IR Conference Call Participants Jeremy Hamblin - Craig-Hallum Capital Group Dana Telsey - Telsey Advisory Group John Lawrence - The Benchmark Company Operator Greetings, and welcome to the Citi Trends First Quarter 2023 Earnings Conference Call. During the presentation, all participan ...