Citi Trends(US:CTRN)2025-12-10 20:47Financial Performance - Net sales for the thirteen weeks ended November 1, 2025, increased to $197,091,000, up from $179,066,000 for the same period in 2024, representing a growth of 10.3%[10] - For the thirty-nine weeks ended November 1, 2025, net sales reached $589,569,000, compared to $541,907,000 in 2024, marking an increase of 8.8%[12] - The company reported a net loss of $6,894,000 for the thirteen weeks ended November 1, 2025, slightly improved from a net loss of $7,152,000 in the same period last year[10] - The net income for the third quarter of 2025 was $871,000, compared to a net loss of $3.426 million in the same quarter of 2024[16] - The company’s net loss for the thirty-nine weeks ended November 1, 2025, was $2.2 million, a significant improvement compared to a net loss of $29.0 million for the same period in 2024[50] Operational Metrics - The loss from operations for the thirty-nine weeks ended November 1, 2025, was $3,338,000, significantly better than the loss of $40,690,000 reported in the same period of 2024[12] - Selling, general and administrative expenses for the thirteen weeks ended November 1, 2025, were $79,346,000, an increase from $74,730,000 in the same period last year[10] - Cost of sales (exclusive of depreciation) rose by $12.7 million, or 11.7%, to $120.5 million in Q3 2025, with cost of sales as a percentage of sales increasing to 61.1%[65] - Selling, general and administrative expenses increased by $4.6 million, or 6.2%, to $79.3 million in Q3 2025, with expenses as a percentage of sales decreasing to 40.3%[66] Cash and Liquidity - Cash and cash equivalents decreased to $51,098,000 as of November 1, 2025, down from $61,085,000 at the beginning of the period[8] - The company has a $75 million revolving credit facility, with no borrowings as of November 1, 2025, and $2.2 million in letters of credit outstanding[27] - Cash provided by operating activities was $1.5 million in the first thirty-nine weeks of 2025, compared to cash used of $32.3 million in the same period of 2024[82] Inventory and Assets - Inventory levels rose slightly to $123,536,000 as of November 1, 2025, from $122,640,000 as of February 1, 2025[8] - The quarter-end inventory balance was $123.5 million, down 3.1% from $127.5 million at the end of the third quarter last year[78] Store Operations - As of November 1, 2025, the company operated 593 stores across 33 states, focusing on off-price value retail for apparel and home trends[17] - The company operated 593 stores across 33 states as of November 1, 2025[56] Shareholder Returns - The company returned $6.3 million to stockholders through share repurchases in the first thirty-nine weeks of fiscal 2025[80] - The company has $40.0 million remaining under its stock repurchase authorization as of November 1, 2025[36] - The company did not repurchase any shares in the third quarter of 2025; $40.0 million remains under stock repurchase authorization[96] Tax and Legal Matters - The company expects to benefit from new tax legislation effective in 2025, which includes immediate expensing of domestic R&D expenditures and reinstatement of 100% bonus depreciation[32] - The company maintains a valuation allowance for deferred tax assets due to insufficient positive evidence for realization[31] - The company has established reserves for legal proceedings once it becomes probable that costs will be incurred[33] - No material adverse legal proceedings are expected to affect the company's financial condition or results of operations[94] Future Commitments - The company’s total future minimum lease payments as of November 1, 2025, are projected to be $315.8 million[46] - The weighted average remaining lease term for operating leases was 6.95 years as of November 1, 2025[47] Other Financial Information - The company recorded a gain on the sale of a building amounting to $10,960,000 during the thirty-nine weeks ended November 1, 2025[12] - The company reported a non-cash impairment expense of $0.3 million related to underperforming stores in the first three quarters of 2025, compared to $1.8 million in the same period of 2024[28] - There have been no material changes to the Risk Factors since the last Annual Report[95] - No changes in internal control over financial reporting during the fiscal quarter ended November 1, 2025[92]