Citi Trends(CTRN) - 2025 Q2 - Quarterly Results

Financial Performance - Total sales increased by 1.7% to $176.6 million in Q2 2024 compared to Q2 2023, while comparable store sales decreased by 1.7$9.4 million in markdowns and $4.0 million in shrink[2] - Net loss for Q2 2024 was$18.4 million, compared to a net loss of $5.0 million in Q2 2023[2] - Adjusted EBITDA loss was$17.2 million in Q2 2024, including $13.4 million of transition expenses, compared to a loss of$3.1 million in Q2 2023[2] - Net sales for the quarter ended August 3, 2024, were $362,841 thousand, an increase from$353,242 thousand for the same period last year, representing a growth of approximately 4.5%[14] - Gross profit margin decreased to 35.0% in Q2 2024 from 37.5% in Q2 2023, indicating a decline in profitability[21] - The net loss for the quarter was $21,840 thousand, compared to a net loss of$11,667 thousand in the same quarter last year, reflecting a worsening of approximately 87.5%[14] - Adjusted net loss for the quarter was $16,202 thousand, compared to$4,916 thousand in the prior year, indicating a significant increase in losses[17] - Basic and diluted net loss per share for the quarter was $(2.63), compared to$(1.42) in the same quarter last year, showing a decline of approximately 85.4%[14] Store Operations - The company opened 1 new store, closed 3 stores, and remodeled 15 stores, ending the quarter with 597 locations[2] - The company plans to close 10 to 15 underperforming stores in fiscal 2024, expecting to end the year with approximately 590 stores[8] Future Outlook - The outlook for the second half of fiscal 2024 includes expectations for comparable store sales to be flat to up low-single digits, with total sales expected to decline mid-single digits[8] - Second half gross margin is expected to be approximately 39%, with EBITDA projected to be positive in the range of $0.5 million to$2.5 million[8] - Cash balance at year-end is expected to be between $60 million and$70 million, with capital expenditures reduced by 35% to approximately $13 million[8] Asset and Liability Management - Total assets decreased to$506,731 thousand as of August 3, 2024, down from $526,507 thousand as of July 29, 2023, a reduction of about 3.7$370,141 thousand compared to $370,554 thousand in the previous quarter[15] - Cash and cash equivalents decreased to$59,302 thousand from $65,820 thousand in the previous quarter, a decline of approximately 8.5$1,261 thousand related to a cyber incident during the quarter[17] - Cyber incident expenses amounted to $36 million, down from$1,723 million in the previous quarter[23] - Other non-recurring expenses totaled $3,009 million, with no expenses reported in the prior quarter[23] Interest and Tax Expenses - Interest income decreased to$(1,460) million from $(1,910) million[23] - Interest expense slightly increased to$158 million from $152 million[23] - Income tax benefit expense was$(8,724) million, compared to $(3,957) million in the previous quarter[23] Depreciation and Impairment - Depreciation increased to$9,576 million, compared to $9,389 million in the prior quarter[23] - Asset impairment charges were$1,261 million, with no charges reported in the previous quarter[23]