Safely reopened the majority of stores
across 33 states
Second quarter-to-date total sales increased
25% and comparable sales in reopened stores increased 53%,
exceeding expectations
Company forms CitiCARES™ Council to
support Black communities
Citi Trends, Inc. (NASDAQ:
CTRN), the leading value retailer of apparel, accessories and home
goods for way less spend primarily for African American families in
the United States, today provided a second quarter-to-date business
update and announced the formation of the CitiCARES™
Council.
Business Update
- Safely reopened 564 of its 574 stores closed due to COVID-19,
with the remaining stores expected to open by the end of July
- Brought back to work substantially all associates in stores,
distribution centers and corporate offices who had previously been
furloughed
- Total sales in the second quarter through June 27, 2020
increased 25% compared to the same period of the prior year,
exceeding expectations
- Comparable store sales for reopened stores from their
respective opening dates in the second quarter through June 27,
2020 increased 53%
David Makuen, Chief Executive Officer, said, “We are thrilled
with our strong second quarter-to-date total and comparable store
sales results as we continue to benefit from a combination of the
strength of our brand, our value proposition and the federal
government stimulus that began in early April. Our strong second
quarter-to-date performance was driven by growth in both
transactions and the average transaction size. Our buying team’s
elevated use of data-driven insights to leverage identified
patterns in customer behaviors has served us well as we capitalize
on opportunistic merchandise opportunities and successfully deliver
new and relevant product for our customers at healthy margins.”
Forms CitiCARESTM
Council
Operating stores predominantly
in Black communities, Citi Trends has a special interest in doing
its part to address the indelible racism in our communities across
the country and advance the cause of justice and racial equality.
The Company has a long-standing commitment to provide a safe and
welcoming space for customers and associates where their
differences and diversities are respected and celebrated. It prides
itself on being a good neighbor. Now more than ever, the Company
recognizes that it is the time to speak up for our neighbors and
stand together with others to support the fight against
racism.
Effective June 2020, Citi
Trends has formed the “CitiCARES™ Council” made up of a diverse set
of individuals that will create and oversee initiatives of change.
This council will define how Citi Trends will move forward,
together with communities across the country, to contribute to
elevating humanity to a place of peace and inclusion so that
families of color experience equality wherever they may walk, work,
shop and carry out their lives.
Mr. Makuen continued, “Over
the decades, Citi Trends has become an integral part of the
neighborhoods in which we proudly serve, neighborhoods that have
disproportionately experienced the effects of racism and
discrimination. As we face such inexcusable inequality, it is time
to speak up and stand together to fight for racial equality and
justice. It is our collective responsibility to work every day to
support this vision and we will do our part. CitiCARES will be our
pillar for implementing actions that really matter to the families
we serve each and every day.”
Guidance
Based on the Company’s quarter-to-date performance, the Company
is estimating fiscal 2020 second quarter total sales to increase in
the mid-teens, with meaningful margin expansion and leverage in
expenses, and improvement in earnings per share compared to the
second quarter of the prior year. This estimate is subject to
potential consumer and marketplace volatility during the current
stages of the COVID-19 pandemic and therefore may change as the
quarter continues to progress.
Reiterates Long-Term Strategic
Plan
As the Company navigates the
current times and returns to a version of normal, its vision
remains the same – Citi Trends aspires to be a leader in the value
retailing space, one of few multi-category, value-priced retailers
focused primarily on the African American market. The Company
provides a differentiated assortment of basics, fashion, trends and
sought-after brands at compelling prices.
The Company is continuing to
make meaningful progress on its long-term strategic plan,
including:
- Maximizing real estate opportunities, including the opening of
four new stores thus far in the second quarter of fiscal 2020;
- Making improvements in supply chain, including reductions in
freight cost and four-wall efficiencies;
- Reducing inventories, increasing margins and increasing turns
of an appealing assortment of always-fresh merchandise; and
- Addressing select technology enhancements to improve
efficiencies and productivity.
The Company anticipates that as the country normalizes and
assuming no further complications from the COVID-19 pandemic, that
it will return to executing on the plan that increases earnings per
share at a compounded annual growth rate of 20% to 25%.
About Citi Trends
Citi Trends, Inc. is a
value-priced retailer of fashion apparel, accessories and home
goods for the entire family. The Company operates 577 stores
located in 33 states. Citi Trends’ website address is
www.cititrends.com. CTRN-G
Forward-Looking
Statements
All statements other than
historical facts contained in this news release, including
statements regarding the Company’s future financial results and
position, business policy and plans, objectives of management for
future operations and our intentions and ability to pay dividends
and complete any share repurchase authorizations, are
forward-looking statements that are subject to material risks and
uncertainties. The words "believe," "may," "could," "plans,"
"estimate," "continue," "anticipate," "intend," "expect,"
“upcoming,” “trend” and similar expressions, as they relate to the
Company, are intended to identify forward-looking statements,
although not all forward-looking statements contain such language.
Statements with respect to earnings, sales or new store guidance
are forward-looking statements. Investors are cautioned that any
such forward-looking statements are subject to the finalization of
the Company’s quarter-end financial and accounting procedures, are
not guarantees of future performance or results and are inherently
subject to risks and uncertainties, some of which cannot be
predicted or quantified. Actual results or developments may differ
materially from those included in the forward-looking statements as
a result of various factors which are discussed in our Annual
Reports and Quarterly Reports on Forms 10-K and 10-Q, respectively,
and any amendments thereto, filed with the Securities and Exchange
Commission. These risks and uncertainties include, but are not
limited to, uncertainties relating to general economic conditions,
including any deterioration whether caused by acts of war,
terrorism, political or social unrest (including any resulting
store closures, damage or loss of inventory), the ongoing COVID-19
(coronavirus) pandemic and associated containment and remediation
efforts, the potential negative impacts of COVID-19 on the global
economy and foreign sourcing, the impacts of COVID-19 on the
Company's financial condition, business operation and liquidity,
including the reopening of the Company’s retail stores and
distribution centers, growth risks, consumer spending patterns,
competition within the industry, competition in our markets and the
ability to anticipate and respond to fashion trends. Any
forward-looking statements by the Company, with respect to
guidance, the Company’s intention to declare and pay dividends, the
repurchase of shares pursuant to a share repurchase program, or
otherwise, are intended to speak only as of the date such
statements are made. Except as required by applicable law,
including the securities laws of the United States and the rules
and regulations of the Securities and Exchange Commission, the
Company does not undertake to publicly update any forward-looking
statements in this news release or with respect to matters
described herein, whether as a result of any new information,
future events or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200630005229/en/
Investor Contact: ICR, Inc. Tom Filandro, 646-277-1235
Tom.Filandro@icrinc.com
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