Press release
Citi Trends Announces First Quarter 2022 Results
Total sales of $208 million Comparable store sales decreased 29% vs. a 35% increase in Q1 2021 vs. Q1 2019 Gross margin of 39.0% Diluted EPS of $3.59;
About this update from Citi Trends, Inc.
[{"type":"text","content":"\nTotal sales of $208 million\n\nComparable store sales decreased 29% vs. a 35% increase in Q1 2021 vs. Q1 2019\n\nGross margin of 39.0%\n\nDiluted EPS of $3.59; adjusted diluted EPS* of $0.42 exceeding high end of guidance\n\nCompany completes sale-leaseback transaction for $46 million\n\n SAVANNAH, Ga.--(BUSINESS WIRE)--\nCiti Trends, Inc. (NASDAQ: CTRN), a growing specialty value retailer of apparel, accessories and home trends for way less spend primarily for African American and Latinx families in the United States, today reported results for the first quarter ended April 30, 2022.\n\nThe Company is reporting select operating results for the first quarter 2022 relative to the same period of 2019 due to the unique operating environment resulting from the COVID-19 pandemic and related government stimulus in 2020 and 2021.\n\nFinancial Highlights – First Quarter 2022\n\n\nTotal sales decreased 27.0% vs. Q1 2021; increased 1.6% vs. Q1 2019\n\n\nComparable store sales decreased 29.2% compared to Q1 2021 on top of a 35% increase in Q1 2021 vs. Q1 2019, representing a positive stack of 5.8% (computed as the sum of Q1 2022 comp vs. Q1 2021 plus Q1 2021 comp vs. Q1 2019)\n\n\nGross margin of 39.0% vs. 42.6% in Q1 2021; increased 150 bps vs. Q1 2019 of 37.5%\n\n\nOperating income of $39.7 million, or $4.7 million as adjusted* for the gain on the sale of a distribution center, compared to $39.0 million in Q1 2021 and $8.7 million in Q1 2019, or $9.8 million as adjusted*\n\n\nDiluted earnings per share of $3.59, or adjusted diluted earnings per share* of $0.42 vs. $3.23 in Q1 2021 and $0.65 in Q1 2019, or $0.72 as adjusted*\n\n\nQuarter-end total inventory compared to Q1 2019 decreased 1.2% (or a decrease of 13.9% excluding packaway inventory); average in-store inventory decreased 32.5% vs. Q1 2019\n\n\nCash of $61.7 million at the end of the quarter, with no debt and a $75 million credit facility\n\n\nChief Executive Officer Comments\n\nDavid Makuen, Chief Executive Officer, commented, “Our first quarter topline results were in line with expectations and our bottom line performance exceeded our guidance. Despite a very difficult inflationary environment, our team hunkered down and rigorously managed inventory and rationalized expenses to deliver solid operational metrics. Our core customers and associates are doing their best to get t...