Citi Trends(US:CTRN)2024-12-11 20:34Financial Performance - Total net sales for the thirteen weeks ended November 2, 2024, were $179,066,000, a slight decrease of 0.3% compared to $179,520,000 for the same period last year[11]. - The company reported a net loss of $7,152,000 for the thirteen weeks ended November 2, 2024, compared to a net loss of $3,863,000 for the same period last year, representing an increase in loss of 85.5%[11]. - Basic net loss per common share was $(0.86) for the current quarter, compared to $(0.47) for the same quarter last year[11]. - The company experienced a loss from operations of $8,826,000 for the thirteen weeks ended November 2, 2024, compared to a loss of $6,003,000 for the same period last year, indicating a worsening operational performance[11]. - Net loss was $7.2 million in Q3 2024 compared to a net loss of $3.9 million in Q3 2023[75]. - Net loss was $29.0 million in the first thirty-nine weeks of 2024 compared to a net loss of $15.5 million in the same period in 2023[81]. Assets and Liabilities - Total current assets decreased to $183,112,000 as of November 2, 2024, down from $225,099,000 as of February 3, 2024, a decline of 18.7%[8]. - Total liabilities decreased to $336,806,000 as of November 2, 2024, from $361,015,000 as of February 3, 2024, a reduction of 6.7%[8]. - Total stockholders' equity decreased to $130,270,000 as of November 2, 2024, down from $157,706,000 as of February 3, 2024, a decline of 17.3%[8]. - Cash and cash equivalents decreased significantly to $38,872,000 as of November 2, 2024, from $79,706,000 as of February 3, 2024, a decline of 51.2%[8]. - The quarter-end cash and cash equivalents balance was $38.9 million, down from $59.7 million at the end of the third quarter last year[82]. Operational Metrics - Inventory levels were reported at $127,514,000 as of November 2, 2024, a decrease from $130,432,000 as of February 3, 2024, reflecting a reduction of 2.2%[8]. - The company operated 593 stores across 33 states as of November 2, 2024[19]. - The company's revenue from contracts with customers is disaggregated by major merchandise categories, with Ladies accounting for 27% and Home & Lifestyle for 10% of net sales in Q3 2024[44]. - For the first thirty-nine weeks of 2024, net sales increased by $9.1 million, or 1.7%, to $541.9 million compared to the same period in 2023[76]. Expenses - Cost of sales (exclusive of depreciation) decreased by $3.1 million, or 2.7%, to $107.8 million in Q3 2024, with cost of sales as a percentage of sales decreasing to 60.2%[70]. - Selling, general and administrative expenses increased by $5.1 million, or 7.3%, to $74.7 million in Q3 2024, resulting in an increase in expenses as a percentage of sales to 41.7%[71]. - Cost of sales (exclusive of depreciation) increased by $11.9 million, or 3.6%, to $343.7 million in the first thirty-nine weeks of 2024, with cost of sales as a percentage of sales increasing to 63.4%[77]. - Selling, general and administrative expenses increased by $12.7 million, or 6.1%, to $222.7 million in the first thirty-nine weeks of 2024, with expenses as a percentage of sales rising to 41.1%[78]. Cash Flow and Financing - The company reported a net cash used in operating activities of $32,348,000 for the thirty-nine weeks ended November 2, 2024, compared to $32,868,000 for the same period last year, indicating a slight improvement[16]. - The company had no borrowings under its $75 million credit facility as of November 2, 2024[28]. - Cash paid for operating leases in the first thirty-nine weeks of 2024 was $46.7 million, compared to $52.7 million in the same period of 2023[50]. - The company continues to meet its cash requirements through cash flow from operations and short-term trade credit[93]. Legal and Regulatory - The company is involved in various legal proceedings but does not expect any to have a material adverse effect on its financial condition[103]. - The company has established appropriate reserves for legal proceedings when costs become probable and can be reasonably estimated[103]. - The evaluation of disclosure controls and procedures concluded that they are effective as of November 2, 2024, providing reasonable assurance for timely reporting[98]. - There were no changes in internal control over financial reporting that materially affected the company during the fiscal quarter ended November 2, 2024[100]. Accounting and Standards - The company’s financial statements are prepared in accordance with U.S. GAAP and are unaudited[20]. - The company is currently evaluating the impact of new accounting standards issued by the FASB regarding segment reporting and income tax disclosures[51][52]. - There have been no material changes to the critical accounting policies since the last annual report[96]. - There have been no material changes to the risk factors described in the annual report for the fiscal year ended February 3, 2024[104].