Press release
Citi Trends Announces CEO Appointment and Q3 Comparable Store Sales Above Guidance
Appoints Ken Seipel as Chief Executive Officer Reports Preliminary Third Quarter Results above prior outlook Q3 2024 Preliminary Total Sales of $179.1
About this update from Citi Trends, Inc.
[{"type":"text","content":"\nAppoints Ken Seipel as Chief Executive Officer\n\n\nReports Preliminary Third Quarter Results above prior outlook\n\n\nQ3 2024 Preliminary Total Sales of $179.1 million, comparable store sales increase of 5.7%\n\n\n SAVANNAH, Ga.--(BUSINESS WIRE)--\nCiti Trends Inc. (NASDAQ: CTRN) today announced the Board of Directors has appointed Kenneth (Ken) Seipel as Chief Executive Officer, effective November 18, 2024. Mr. Seipel has been serving as the Interim CEO of Citi Trends since June 1, 2024, and on the Board of Directors since 2019. Concurrently, the Board appointed Peter Sachse, the current Executive Chairman of the Board, as Chairman of the Board.\n\n\nIn addition, the Company is announcing preliminary Q3 2024 results with sales of $179.1 million and comparable store sales growth of 5.7% vs. Q3 2023. Q3 sales results are expected to be above the Company’s previous outlook of second half comparable store sales results flat to up low single digits compared to prior year. Gross margin for Q3 2024 is expected to be 39.8%, an increase of 160 basis points compared to Q3 2023. Sales and gross margin results are due to improved product, better allocation methods and increased customer traffic. Q3 2024 Adjusted EBITDA* is expected to be a loss of $3.3 million, which includes strategic costs for in-depth customer and market research and costs to improve operational processes. More details will be provided with the Company’s Q3 earnings release on December 3, 2024.\n\n\nThe Company’s Chairman of the Board, Peter Sachse, commented, “We are pleased with our sales and gross margin performance in Q3 2024 and are excited to appoint Ken to the permanent role of CEO. In a short period of time, Ken has improved the Company’s business performance and is laying the groundwork for long term shareholder value creation. Ken’s deep retail experience and his strong track record of leading significant value creation as CEO in past companies gives us confidence that he will develop and execute Citi Trends’ long term strategic plan to more than triple our company value.”\n\n\nKen Seipel commented, “Citi Trends is an exciting growth opportunity. The Company is uniquely positioned with nearly 600 stores serving our core African American customers in their neighborhoods, creating a defensible moat against competition. We are fortunate to have a loyal and fre...