Press release
Citi Trends Announces First Quarter 2023 Results
Total sales of $179.7 million, in line with previously stated guidance Strong financial position with liquidity of approximately $164 million and no debt
About this update from Citi Trends, Inc.
[{"type":"text","content":"\nTotal sales of $179.7 million, in line with previously stated guidance\n\n\nStrong financial position with liquidity of approximately $164 million and no debt\n\n\nCompany updates fiscal year 2023 guidance\n\n\n SAVANNAH, Ga.--(BUSINESS WIRE)--\nCiti Trends, Inc. (NASDAQ: CTRN), a leading specialty value retailer of apparel, accessories and home trends for way less spend primarily for African American and multicultural families in the United States, today reported results for the first quarter ended April 29, 2023.\n\n\nFinancial Highlights – First Quarter 2023\n\n\n\nTotal sales decreased 13.7% vs. Q1 2022 in line with guidance; Comparable store sales decreased 14.1% compared to Q1 2022\n\n\n\nGross margin of 36.7%, or 37.0% as adjusted* vs. 39.0% in Q1 2022\n\n\n\nOperating loss was $9.5 million, or a loss of $7.9 million as adjusted*, compared to operating income of $39.7 million, or $4.7 million as adjusted* in Q1 2022\n\n\n\nNet loss per share was ($0.81), or adjusted net loss per share* of ($0.66), vs. diluted earnings per share of $3.59, or adjusted diluted earnings per share* of $0.42 in Q1 2022\n\n\n\nQuarter-end total dollar inventory decreased 11.9% compared to Q1 2022; average in-store inventory increased 8.1% compared to Q1 2022 reflecting work to rebuild inventory levels in targeted departments\n\n\n\nTotal liquidity of approximately $164 million at the end of the quarter, made up of $88.7 million of cash, no borrowings under a $75 million credit facility, and no debt\n\n\n\nChief Executive Officer Comments\n\n\nDavid Makuen, Chief Executive Officer, commented, “Against what remained a challenging macro backdrop for the low-income families that we serve, our first quarter results were in line with our previously stated guidance. During the quarter, we made progress rebuilding inventory in key areas of the business, which we believe will position us to recoup market share. Although we are seeing good response to our spring and early summer merchandise, our customers are being selective about what they put in their basket. That said, we continue to see strong shopper conversion, a clear signal that our assortments are resonating and the Citi Trends brand position remains healthy.”\n\n\nMr. Makuen continued, “With a macro environment that remains uncertain, we are prudently adjusting our outlook for the fiscal year,...