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 ...

Financial Data and Key Metrics Changes - Total sales for Q3 2023 were $179.5 million, a decrease of 6.7% compared to Q3 2022 [14] - Comp sales decreased by 6.2% year-over-year, while gross margin remained strong at 38.2%, flat compared to the previous quarter but down 160 basis points year-over-year [12][14] - Operating loss was $6 million for the quarter, compared to operating income of $31.6 million in Q3 2022 [14] - Net loss per share was $0.47, compared to diluted earnings per share of $3.02 in the same quarter last year [14] Business Line Data and Key Metrics Changes - The Ladies business benefited from excellent preseason trend forecasting, resulting in one of the best assortments ever [28] - The Home, Men's, Big Men's, and Beauty categories saw positive customer reception due to improved inventory levels and better values [28] - The company closed five stores and remodeled seven, bringing the total store count to 606 [14] Market Data and Key Metrics Changes - The customer base primarily consists of low-income families, with many earning $45,000 or less annually, leading to more selective purchasing behavior [28] - The macroeconomic environment and unseasonably warm weather negatively impacted sales, particularly in the back-to-school and fall categories [28][30] Company Strategy and Development Direction - The company is focused on four strategic initiatives: driving comp store productivity, managing inventory and maximizing margin, controlling SG&A expenses, and executing technology enhancements [32] - A new ERP system was launched to improve analytics, product allocation, and assortment planning, which is expected to enhance inventory management and sales performance [34][61] - The company is optimistic about the holiday season, supported by a timely setup of the Ready. Set. GIFT! campaign and improved inventory quality [19][31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that customers are under pressure and are shopping closer to need, which is expected to continue through the fiscal year [3] - The company anticipates total sales for fiscal 2023 to be down mid-single digits compared to fiscal 2022, with Q4 sales expected to be flat to up low single digits [23][4] - Management expressed confidence in the strategic initiatives and the ability to navigate the current environment while focusing on long-term profitability and shareholder value [24] Other Important Information - The company ended the quarter with $135 million in liquidity, including approximately $60 million in cash and no debt [15] - The company is testing a more robust marketing strategy, which has shown promising early results and will be expanded to 20% of the fleet for the holiday season [32][49] Q&A Session Summary Question: What is the expectation for Q4 comp sales? - Management expects Q4 comp sales to be down mid-single digits to flat compared to last year, with improvements anticipated throughout the quarter [39][40] Question: How is the new marketing initiative performing? - Early results from the marketing tests indicate healthy lifts in traffic and conversion, leading to plans for broader implementation [49] Question: What impact did weather have on sales? - Management noted that unseasonably warm weather negatively affected sales, particularly in fall merchandise, but saw a bounce back when weather conditions improved [55][75] Question: What is the outlook for inventory management with the new ERP system? - The new ERP system is expected to enhance inventory allocation and management, allowing for more precise product distribution based on regional demand [61]

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 ...

| --- | --- | --- | --- | --- | |------------------------------------------------------------------------------|-------------------------|----------------------------|------------|---------------| | Cash paid for operating leases | 2022 \n$ 56,053 $ | Fiscal 2021 \n 56,932 | Year \n $ | 2020 \n47,075 | | Right of use assets obtained in exchange for new operating lease liabilities | $ 101,241 $ | 75,359 | $ | 60,144 | | | | | | | | Weighted average remaining lease term (years) - operating leases | 7.83 | 5.3 ...

Financial Data and Key Metrics Changes - For Q4 2022, total sales were $209.5 million, a decrease of 13.1% compared to Q4 2021 and a decrease of 0.7% compared to Q4 2019 [11] - Full-year sales for fiscal 2022 were $795 million, a decrease of 19.8% compared to the prior year but an increase of 1.7% compared to 2019 [12] - Gross margin for Q4 2022 was 39.5%, down from 40.4% in Q4 2021 and 39.7% in Q4 2019 [36] - Earnings per diluted share for Q4 2022 was $0.81, down from $1.16 in Q4 2021 [12] - The company ended the fiscal year with $104 million in cash and zero debt, indicating a strong balance sheet [5][8] Business Line Data and Key Metrics Changes - Comp sales for Q4 2022 decreased by 14.4% compared to Q4 2021, showing a sequential improvement from a 18.3% decline in Q3 [11] - Inventory at year-end decreased by 14.6% compared to 2021, with the company maintaining a disciplined approach to inventory management [13] Market Data and Key Metrics Changes - The company serves low-income African American families, with an average household income of $38,000, who are currently facing economic pressures due to inflation and reduced tax refunds [32] - The first quarter of fiscal 2023 is expected to be softer, with total sales anticipated to decline by low double digits to mid-teens compared to Q1 2022 [38] Company Strategy and Development Direction - The company plans to focus on driving comp store productivity, managing inventory, and enhancing the in-store customer experience [4][9] - Strategic priorities for 2023 include improving product assortments, controlling SG&A expenses, and executing technology enhancements [33] - The company aims to open 5 to 10 new stores and remodel 25 to 30 locations while closing underperforming stores [14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the second half of 2023, expecting relief for low-income customers as economic conditions improve [9][38] - The company anticipates a gradual recovery in consumer behavior, particularly in discretionary spending, as inflation eases [56] Other Important Information - The company repurchased approximately 331,000 shares at an aggregate cost of $10 million during the year, with $50 million remaining on the buyback program [13] - A ransomware incident temporarily disrupted operations but was resolved, allowing the company to restore critical systems [33] Q&A Session Summary Question: What markers are being looked at for improvement in the second half of the year? - Management indicated that driving comp store productivity and refining product assortments are key focuses, with expectations for improved trends in the second half [44] Question: Any updates on inventory levels and the CTx remodels? - Inventory levels are expected to improve, and CTx remodels are showing mid to high single-digit sales lifts compared to the base [46] Question: What is the expected contribution from the 53rd week in sales? - The growth contribution from the 53rd week is estimated to be about 150 basis points over the prior year, with negligible impact on profitability [47] Question: How has the reduction in SNAP benefits affected sales trends? - The reduction in SNAP benefits has led to lower discretionary spending among core customers, impacting sales more than the timing of tax refunds [48] Question: What is the profile of stores being closed? - Stores being closed typically do not meet sufficient sales volumes to ensure stable profitability, regardless of their location or structure [62]