Press release
Citi Trends Announces Second Quarter Fiscal 2024 Results
Total sales growth of 1.7% to $176.6 million Significant actions taken to prepare for profitable growth Strong financial position with liquidity of
About this update from Citi Trends, Inc.
[{"type":"text","content":"\nTotal sales growth of 1.7% to $176.6 million\n\n\nSignificant actions taken to prepare for profitable growth\n\n\nStrong financial position with liquidity of approximately $134 million and no debt\n\n\nSingle digit comparable store sales increase Q3 to-date\n\n\nCompany provides Outlook for second half of Fiscal 2024\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 second quarter ended August 3, 2024.\n\n\nFinancial Highlights – Second Quarter 2024\n\n\n\nTotal sales of $176.6 million increased 1.7% vs. Q2 2023; comparable store sales, calculated on a shifted 13-week to 13-week basis, decreased 1.7% compared to Q2 2023\n\n\n\nGross margin of 31.1% including $9.4 million of markdowns from strategic inventory reset and $4.0 million of shrink from physical inventory results and accrual rate adjustment, vs. 38.2% in Q2 2023\n\n\n\nNet loss of ($18.4) million, or ($16.2) million as adjusted*, compared to net loss of ($5.0) million, or ($4.9) million as adjusted* in Q2 2023\n\n\n\nAdjusted EBITDA* loss of ($17.2) million, including $13.4 million of transition expenses, compared to adjusted EBITDA* loss of ($3.1) million in Q2 2023\n\n\n\nOpened 1 new store, closed 3 stores and remodeled 15 stores to end the quarter with 597 locations; 23% of the fleet in CTx format\n\n\n\nCash of $59.3 million at quarter-end, with no debt and no borrowings under a $75 million credit facility\n\n\n\nExited Q2 2024 with total inventory flat vs. Q2 2023\n\n\n\nSecond Quarter Actions\n\n\nDuring the second quarter, the Company took strategic and definitive action to reset its inventory composition, marking down slow-selling and aged inventory. This inventory reset sets the stage for the Company’s refined merchandise strategy to consistently offer fresher, more balanced assortments of good, better, and best products with a higher penetration of opening price point products and branded ‘treasure hunt’ goods at incredible value for our customers.\n\n\nThroughout the quarter, the Company continued taking action to control and mitigate shrink, including upgrading store talent, updating in-store theft prevention equipment as well as ...