Citi Trends, Inc. (NASDAQ: CTRN) today reported first quarter
sales and earnings that, in addition to being first quarter
records, were records for any quarter in the Company’s history.
Financial Highlights – First
quarter ended May 1, 2010
Total sales in the first quarter ended May 1, 2010 increased
26.8% to $181.4 million compared with $143.1 million in the first
quarter ended May 2, 2009. Comparable store sales increased 9.6% in
the first quarter of 2010 after a 7.4% increase in last year’s
first quarter. Net income was $12.4 million compared with $7.9
million in last year’s first quarter. Earnings per diluted share
increased 59.3% to $0.86 in the first quarter of 2010 compared with
$0.54 in the first quarter of 2009.
The Company opened 19 stores, relocated or expanded 5 others,
and closed 2 stores in the first quarter of 2010, reaching a total
store count of 420 at the end of the quarter.
Fiscal 2010
Outlook
The Company is raising its 2010 earnings estimate to a range of
approximately $1.75 to $1.80 per diluted share which includes an
anticipated 2010 comparable store sales increase of approximately
4% to 5%. For the year, the Company expects to increase selling
square footage by at least 15%. The effective tax rate for 2010 is
estimated to approximate 35%.
The Company reminds investors of the complexity of accurately
assessing future results given the difficulty in predicting fashion
trends, consumer preferences and general economic conditions and
the impact of other business variables. See “Forward-Looking
Statements” below for more information regarding these
uncertainties.
Investor Conference Call and
Webcast
Citi Trends will host a conference call today at 9:00 a.m. ET.
The number to call for the live interactive teleconference is
(212) 231-2900. A replay of the conference call will be
available until May 26, 2010, by dialing (402) 977-9140 and
entering the passcode, 21463731. The live broadcast of Citi Trends'
quarterly conference call will be available online at the Company's
website, www.cititrends.com, as well as
http://ir.cititrends.com/events.cfm, beginning today at 9:00 a.m.
ET. The online replay will follow shortly after the call and
continue through May 26, 2010.
During the conference call, the Company may discuss and answer
questions concerning business and financial developments and
trends. The Company’s responses to questions, as well as other
matters discussed during the conference call, may contain or
constitute information that has not been disclosed previously.
About Citi
Trends
Citi Trends, Inc. is a value-priced retailer of urban fashion
apparel and accessories for the entire family. The Company
currently operates 420 stores located in 24 states in the
Southeast, Mid-Atlantic and Midwest regions and the states of Texas
and California. Citi Trends’ website address is www.cititrends.com.
CTRN-E
Forward-Looking Statements
All statements other than historical facts contained in this
news release, including statements regarding our future financial
results and position, business policy and plans and objectives of
management for future operations, are forward-looking statements
that are subject to material risks and uncertainties. The words
"believe," "may," "could," "plans," "estimate," "continue,"
"anticipate," "intend," "expect" and similar expressions, as they
relate to Citi Trends, are intended to identify forward-looking
statements. Statements with respect to earnings guidance are
forward-looking statements. Investors are cautioned that any such
forward-looking statements are subject to the finalization of the
Company’s quarterly 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 Citi Trends,
Inc. filings with the Securities and Exchange Commission. These
risks and uncertainties include, but are not limited to,
uncertainties relating to economic conditions, growth risks,
consumer spending patterns, competition within the industry,
competition in our markets and the ability to anticipate and
respond to fashion trends. 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, Citi
Trends 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.
CITI TRENDS, INC. CONDENSED CONSOLIDATED
STATEMENTS OF INCOME (unaudited) (in thousands,
except per share data) Thirteen Weeks
Ended Thirteen Weeks Ended May 1, 2010 May 2,
2009 (unaudited) (unaudited) Net sales $ 181,406 $ 143,097 Cost
of sales 109,016 85,909 Gross profit
72,390 57,188 Selling, general and administrative expenses 48,450
40,133 Depreciation and amortization 4,750
4,373 Income from operations 19,190 12,682 Interest income
55 139 Interest expense (4 ) (41 ) Unrealized loss on investment
securities - (728 ) Income before income tax
expense 19,241 12,052 Income tax expense 6,792
4,123 Net income $ 12,449 $ 7,929 Basic
net income per common share $ 0.86 $ 0.54 Diluted net
income per common share $ 0.86 $ 0.54
Net income attributable to common stockholders (1) $ 12,449
$ 7,780 Weighted average shares used to
compute basic net income per share 14,458
14,318 Weighted average shares used to compute diluted net
income per share 14,489 14,339
(1) Net of income allocated to nonvested restricted stockholders
CITI TRENDS, INC. CONDENSED
CONSOLIDATED BALANCE SHEETS (unaudited) (in
thousands) May 1, 2010 May 2, 2009
(unaudited) (unaudited) Assets: Cash and cash equivalents $ 83,390
$ 44,672 Short-term investment securities 30,025 - Inventory 95,685
84,613 Prepaid and other current assets 14,131 12,227 Property and
equipment, net 64,300 58,413 Long-term investment securities -
43,097 Other noncurrent assets 4,060 4,768
Total assets $ 291,591 $ 247,790
Liabilities and Stockholders' Equity: Accounts payable $ 61,289 $
47,899 Accrued liabilities 19,079 17,339 Other current liabilities
5,886 6,568 Noncurrent liabilities 10,024
9,049 Total liabilities 96,278 80,855 Total
stockholders' equity 195,313 166,935
Total liabilities and stockholders' equity $ 291,591 $
247,790
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