Complete year-over-year gross sales progress of three.7% to $186.3 million
Comparable gross sales progress of three.1%; Gross margin at 38.7%
Steadiness sheet continues to have ample liquidity and no debt
Firm reiterates Fiscal 2024 EBITDA Outlook
SAVANNAH, Ga.–(BUSINESS WIRE)–Citi Traits, Inc. (NASDAQ: CTRN), a number one specialty worth retailer of attire, equipment and residential developments for means much less spend primarily for African American and multicultural households in america, at present reported outcomes for the primary quarter ended Could 4, 2024.
Monetary Highlights “ First Quarter 2024
- Complete gross sales of $186.3 million elevated 3.7% vs. Q1 2023; comparable retailer gross sales, calculated on a shifted 13-week to 13-week foundation, elevated 3.1% in comparison with Q1 2023
- Gross margin of 38.7% vs. 36.7% as reported and 37.0% as adjusted in Q1 2023
- Working lack of $7.0 million, or $5.6 million as adjusted, in comparison with an working lack of $9.5 million or $7.9 million as adjusted in Q1 2023
- Adjusted EBITDA lack of $0.8 million in comparison with an adjusted lack of $3.2 million in Q1 2023
- Web loss per share was ($0.42), or ($0.32) as adjusted, in comparison with ($0.81), or ($0.66) as adjusted in Q1 2023
- Closed 3 shops and reworked 20 shops to finish the quarter with 599 places; reworked a further 15 shops Q2 2024 thus far, leading to 21% of the fleet in CTx format
- Money of $58.2 million at quarter-end, with no debt and no borrowings below a $75 million credit score facility
- Exited Q1 2024 with a list improve of 4% vs. Q1 2023
Interim Chief Govt Officer Feedback
Ken Seipel, Interim Chief Govt Officer, commented, The board is inspired with our first quarter efficiency by which we registered an enchancment in topline pattern, delivering a comparable gross sales improve of three.1%. The quarter was additional highlighted by gross margin enlargement of 160 foundation factors in comparison with final yr. The enhancements in topline and gross margin had been helped by our rebuild of inventories in focused product classes. We additionally benefitted from our retailer groups’ delivering in-store experiences and bringing to life our Citi Traits’ worth proposition for your entire household.
Mr. Seipel continued, Our stability sheet has ample liquidity and no debt due to our monetary disciplines, which in flip permits us the pliability to fund enterprise alternatives with acceptable charges of returns. We’re aware of the difficult financial setting for the decrease revenue client, nonetheless, we are going to execute the enterprise initiatives inside our management that can place us to realize our EBITDA goal for the yr. We’re centered on driving worthwhile gross sales, sharpening our product assortment choices, streamlining prices, optimizing our provide chain, bettering stock returns and leveraging advantages from current expertise investments. I want to thank our complete group for his or her dedication to executing our initiatives and serving our clients on daily basis.
Mr. Seipel concluded, As introduced on Could 31, 2024, David Makuen has stepped down from his position as CEO. On behalf of the Board of Administrators and your entire Citi Traits Group, I want to thank David for his arduous work and management these previous 4 years. David formed and constructed our sturdy function pushed Citi Traits tradition whereas main the corporate via among the most difficult client environments in current historical past. Our greatest needs to David!
Capital Return Program Replace
Within the first quarter of fiscal 2024, the Firm didn’t repurchase any shares of its frequent inventory. On the finish of Q1 2024, $50.0 million remained out there below the Firm’s share repurchase program.
Fiscal 2024 Outlook
The Firm’s up to date fiscal 2024 outlook is as follows:
- Anticipating full yr comparable retailer gross sales progress of low to mid-single digits, a spread barely under our earlier outlook
- Full yr gross margin to broaden by roughly 75 to 100 foundation factors, in keeping with earlier outlook
- SG&A {dollars} anticipated to extend by roughly 1.5% to 2.5%, barely higher than earlier outlook from streamlined prices in a wide range of areas
- Full yr EBITDA deliberate to be within the vary of $4 million to $10 million, unchanged from earlier outlook
- The Firm continues to plan to speak in confidence to 5 new shops, rework roughly 40 shops and shut 10 to fifteen underperforming shops as a part of its ongoing fleet optimization; anticipating to finish fiscal 2024 with roughly 595 shops
- Full yr capital expenditures are nonetheless anticipated to be roughly $20 million
Investor Convention Name and Webcast
Citi Traits will host a convention name at present at 9:00 a.m. ET. The stay broadcast of Citi Traits’ convention name shall be out there on-line on the Firm’s web site, cititrends.com, below the Investor Relations part, starting at present at 9:00 a.m. ET. The net replay will comply with shortly after the decision and shall be out there for replay for one yr.
The stay convention name may also be accessed by dialing (877) 407-0779. A replay of the convention name shall be out there till June 11, 2024, by dialing (844) 512-2921 and getting into the passcode, 13746167.
Throughout the convention name, the Firm might talk about and reply questions regarding enterprise and monetary developments and developments which have occurred after quarter-end. The Firm’s responses to questions, in addition to different issues mentioned through the name, might comprise or represent info that has not been disclosed beforehand.
Non-GAAP Monetary Measures
The historic non-GAAP monetary measures mentioned herein are reconciled to their corresponding GAAP measures on the finish of this press launch. The Firm is unable to offer a full reconciliation of the forward-looking non-GAAP monetary measure utilized in 2024 steerage with out unreasonable effort as a result of it’s not potential to foretell sure of its adjustment objects with an affordable diploma of certainty. This info relies upon future occasions and could also be outdoors of the Firm’s management and its unavailability might have a big affect on its monetary outcomes.
About Citi Traits
Citi Traits, Inc. is a number one specialty worth retailer of attire, equipment and residential developments for means much less spend primarily for African American and multicultural households in america. The Firm operates 599 shops situated in 33 states. For extra info, go to cititrends.com or your native retailer.
Ahead-Wanting Statements
All statements aside from historic info contained on this information launch, together with statements concerning the Firm’s future monetary outcomes and place, enterprise coverage and plans, aims and expectations of administration for future operations and capital allocation expectations, are forward-looking statements which can be topic to materials dangers and uncertainties. The phrases “believe,” “may,” “could,” “plans,” “estimate,” expects, “continue,” “anticipate,” “intend,” “expect,” upcoming, pattern and comparable expressions, as they relate to the Firm, are supposed to determine forward-looking statements, though not all forward-looking statements comprise such language. Statements with respect to earnings, gross sales or new retailer steerage are forward-looking statements. Traders are cautioned that any such forward-looking statements are topic to the finalization of the Firm’s quarter-end monetary and accounting procedures, aren’t ensures of future efficiency or outcomes, and are inherently topic to dangers and uncertainties, a few of which can’t be predicted or quantified. Precise outcomes or developments might differ materially from these included within the forward-looking statements on account of numerous elements that are mentioned in our Annual Experiences and Quarterly Experiences on Types 10-Ok and 10-Q, respectively, and any amendments thereto, filed with the Securities and Alternate Fee. These dangers and uncertainties embody, however aren’t restricted to, uncertainties referring to common financial circumstances, together with inflation, power and gas prices, unemployment ranges, and any deterioration whether or not brought on by acts of conflict, terrorism, political or social unrest (together with any ensuing retailer closures, injury or lack of stock); or different elements; modifications in market rates of interest and market ranges of wages; impacts of pure disasters corresponding to hurricanes; uncertainty and financial affect of pandemics, epidemics or different public well being emergencies corresponding to the continued COVID-19 pandemic; transportation and distribution delays or interruptions; modifications in freight charges; the Firm’s capacity to draw and retain staff; the Firm’s capacity to barter successfully the associated fee and buy of merchandise stock dangers on account of shifts in market demand; the Firm’s capacity to gauge trend developments and altering client preferences; client confidence and modifications in client spending patterns; competitors inside the business; competitors in our markets; the period and extent of any financial stimulus packages; modifications in product combine; interruptions in suppliers’ companies; the affect of the cyber disruption we recognized on January 14, 2023, together with authorized, reputational, monetary and contractual dangers ensuing from the disruption, and different dangers associated to cybersecurity, information privateness and mental property; short-term modifications in demand on account of climate patterns; seasonality of the Firm’s enterprise; modifications in market rates of interest and market degree wages; the outcomes of pending or threatened litigation; delays related to constructing, transforming, opening and working new shops; and delays related to constructing, and opening or increasing new or present distribution facilities. Any forward-looking statements by the Firm, with respect to steerage, the repurchase of shares pursuant to a share repurchase program, or in any other case, are supposed to talk solely as of the date such statements are made. Besides as required by relevant legislation, together with the securities legal guidelines of america and the foundations and rules of the Securities and Alternate Fee, the Firm doesn’t undertake to publicly replace any forward-looking statements on this information launch or with respect to issues described herein, whether or not on account of any new info, future occasions or in any other case.
CITI TRENDS, INC. |
||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) |
||||||||||||
(in hundreds, besides per share information) |
||||||||||||
First Quarter |
||||||||||||
2024 |
2023 |
2022 |
||||||||||
Web gross sales |
$ |
186,289 |
|
$ |
179,688 |
|
$ |
208,215 |
|
|||
Price of gross sales (unique of depreciation proven individually under) |
|
(114,254 |
) |
|
(113,659 |
) |
|
(127,011 |
) |
|||
Promoting, common and administrative bills |
|
(74,211 |
) |
|
(70,807 |
) |
|
(71,026 |
) |
|||
Depreciation |
|
(4,793 |
) |
|
(4,681 |
) |
|
(5,445 |
) |
|||
Acquire on sale-leaseback |
|
– |
|
|
– |
|
|
34,920 |
|
|||
(Loss) Earnings from operations |
|
(6,969 |
) |
|
(9,460 |
) |
|
39,653 |
|
|||
Curiosity revenue |
|
849 |
|
|
1,023 |
|
|
– |
|
|||
Curiosity expense |
|
(79 |
) |
|
(75 |
) |
|
(76 |
) |
|||
(Loss) revenue earlier than revenue taxes |
|
(6,199 |
) |
|
(8,512 |
) |
|
39,577 |
|
|||
Earnings tax profit (expense) |
|
2,773 |
|
|
1,876 |
|
|
(9,374 |
) |
|||
Web (loss) revenue |
$ |
(3,426 |
) |
$ |
(6,635 |
) |
$ |
30,203 |
|
|||
Fundamental internet (loss) revenue per frequent share |
$ |
(0.42 |
) |
$ |
(0.81 |
) |
$ |
3.59 |
|
|||
Diluted internet (loss) revenue per frequent share |
$ |
(0.42 |
) |
$ |
(0.81 |
) |
$ |
3.59 |
|
|||
Weighted common variety of shares excellent | ||||||||||||
Fundamental |
|
8,253 |
|
|
8,182 |
|
|
8,407 |
|
|||
Diluted |
|
8,253 |
|
|
8,182 |
|
|
8,407 |
|
|||
CITI TRENDS, INC. |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) |
||||||||
(in hundreds) |
||||||||
Could 4, 2024 |
April 29, 2023 |
|||||||
Property: | ||||||||
Money and money equivalents |
$ |
58,169 |
$ |
88,707 |
||||
Stock |
|
119,014 |
|
114,322 |
||||
Pay as you go and different present belongings |
|
17,815 |
|
16,054 |
||||
Property and tools, internet |
|
53,352 |
|
57,383 |
||||
Working lease proper of use belongings |
|
226,918 |
|
252,435 |
||||
Different noncurrent belongings |
|
8,834 |
|
5,530 |
||||
Complete belongings |
$ |
484,102 |
$ |
534,430 |
||||
Liabilities and Stockholders’ Fairness: | ||||||||
Accounts payable |
$ |
72,269 |
$ |
90,029 |
||||
Accrued liabilities |
|
24,437 |
|
23,473 |
||||
Present working lease liabilities |
|
45,428 |
|
47,780 |
||||
Different present liabilities |
|
841 |
|
912 |
||||
Noncurrent working lease liabilities |
|
184,463 |
|
209,594 |
||||
Different noncurrent liabilities |
|
1,831 |
|
2,680 |
||||
Complete liabilities |
|
329,269 |
|
374,468 |
||||
Complete stockholders’ fairness |
|
154,832 |
|
159,962 |
||||
Complete liabilities and stockholders’ fairness |
$ |
484,101 |
$ |
534,430 |
||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited) |
||||||||||||
(in hundreds, besides per share information) |
||||||||||||
The Firm makes reference on this launch to adjusted gross margin, adjusted working revenue, adjusted internet revenue, adjusted earnings per share and adjusted EBITDA. The Firm believes these supplemental measures replicate working outcomes which can be extra indicative of the Firm’s ongoing working efficiency whereas bettering comparability to prior and future intervals, and as such, might present traders with an enhanced understanding of the Firm’s previous monetary efficiency and prospects for the long run. This info is just not supposed to be thought-about in isolation or as an alternative choice to internet revenue or earnings per diluted share ready in accordance with typically accepted accounting rules (GAAP). | ||||||||||||
First Quarter |
||||||||||||
Could 4, 2024 |
April 29, 2023 |
|||||||||||
Reconciliation of Adjusted Working (Loss) Earnings | ||||||||||||
Working loss |
$ |
(6,969 |
) |
$ |
(9,460 |
) |
||||||
Cyber incident bills |
|
” |
|
|
1,560 |
|
||||||
Different non-recurring bills |
|
1,380 |
|
|
” |
|
||||||
Adjusted working loss |
$ |
(5,589 |
) |
$ |
(7,900 |
) |
||||||
First Quarter |
||||||||||||
Could 4, 2024 |
April 29, 2023 |
|||||||||||
Reconciliation of Adjusted Diluted EPS | ||||||||||||
Diluted loss per share |
$ |
(0.42 |
) |
$ |
(0.81 |
) |
||||||
Cyber incident bills |
|
” |
|
|
0.19 |
|
||||||
Different non-recurring bills |
|
0.17 |
|
|
” |
|
||||||
Tax impact |
|
(0.07 |
) |
|
(0.04 |
) |
||||||
Adjusted diluted loss per share |
$ |
(0.32 |
) |
$ |
(0.66 |
) |
||||||
First Quarter |
||||||||||||
Could 4, 2024 |
April 29, 2023 |
|||||||||||
Reconciliation of Adjusted EBITDA | ||||||||||||
Web loss |
$ |
(3,426 |
) |
$ |
(6,635 |
) |
||||||
Curiosity revenue |
|
(849 |
) |
|
(1,023 |
) |
||||||
Curiosity expense |
|
79 |
|
|
75 |
|
||||||
Earnings tax profit |
|
(2,773 |
) |
|
(1,876 |
) |
||||||
Depreciation |
|
4,793 |
|
|
4,681 |
|
||||||
Cyber incident bills |
|
” |
|
|
1,560 |
|
||||||
Different non-recurring bills |
|
1,380 |
|
|
” |
|
||||||
Adjusted EBITDA |
$ |
(796 |
) |
$ |
(3,218 |
) |
||||||
First Quarter |
||||||||||||
Could 4, 2024 |
April 29, 2023 |
|||||||||||
Reconciliation of Adjusted Gross Margin | ||||||||||||
Web gross sales |
$ |
186,289 |
|
$ |
179,688 |
|
||||||
Price of gross sales |
|
(114,254 |
) |
|
(113,659 |
) |
||||||
Gross revenue |
$ |
72,035 |
|
$ |
66,029 |
|
||||||
Gross margin |
|
38.7 |
% |
|
36.7 |
% |
||||||
Cyber incident bills |
$ |
– |
|
$ |
513 |
|
||||||
Adjusted gross revenue |
$ |
72,035 |
|
$ |
66,542 |
|
||||||
Adjusted gross margin |
|
38.7 |
% |
|
37.0 |
% |
View supply model on businesswire.com: https://www.businesswire.com/information/dwelling/20240604021473/en/
Tom Filandro
ICR, Inc.
CitiTrendsIR@icrinc.com
Supply: Citi Traits, Inc.