Citi Trends, Inc. (NASDAQ: CTRN) today reported results for the first quarter of fiscal 2011.
Financial Highlights – First quarter ended April 30, 2011
Total sales in the first quarter ended April 30, 2011 increased 4.3% to $189.2 million compared with $181.4 million in the first quarter ended May 1, 2010. Comparable store sales decreased 6.9%, after increasing 9.6% in last year’s first quarter. Net income was $12.1 million, or $0.83 per diluted share, in the first quarter of 2011, compared with $12.4 million, or $0.86 per diluted share, in last year’s first quarter.
The Company opened 15 stores, relocated or expanded 5 others, and closed 3 stores in the first quarter of 2011, reaching a total store count of 473 at the end of the quarter.
Fiscal 2011 Outlook
The Company estimates that 2011 earnings will be in a range of approximately $1.25 to $1.35 per diluted share. This estimate assumes that comparable store sales will be down 1% to 2% for the full year, including a 1% to 2% increase in the last three quarters of the year. Additionally, in 2011 the Company expects to increase selling square footage by at least 15% and expects its effective tax rate to be in a range of 34% to 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) 231-2913. A replay of the conference call will be available until May 25, 2011, by dialing (402) 977-9140 and entering the passcode, 21520634. 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 25, 2011.
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 operated 473 stores located in 27 states as of the end of the first quarter of fiscal 2011. Citi Trends’ website address is www.cititrends.com. CTRN-E
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|
|(in thousands, except per share data)|
|Thirteen Weeks Ended||Thirteen Weeks Ended|
|April 30, 2011||May 1, 2010|
|Cost of sales||114,099||109,016|
|Selling, general and administrative expenses||51,072||48,450|
|Depreciation and amortization||5,584||4,750|
|Income from operations||18,413||19,190|
|Income before income tax expense||18,463||19,241|
|Income tax expense||6,370||6,792|
|Basic net income per common share||$||0.83||$||0.86|
|Diluted net income per common share||$||0.83||$||0.86|
|Weighted average shares used to compute basic net income per share||14,554||14,458|
|Weighted average shares used to compute diluted net income per share||14,567||14,489|
|CITI TRENDS, INC.|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|April 30, 2011||May 1, 2010|
|Cash and cash equivalents||$||76,847||$||83,390|
|Short-term investment securities||-||30,025|
|Prepaid and other current assets||15,828||14,131|
|Property and equipment, net||91,175||64,300|
|Long-term investment securities||16,824||-|
|Other noncurrent assets||3,132||4,060|
|Liabilities and Stockholders' Equity:|
|Other current liabilities||6,223||5,886|
|Total stockholders' equity||217,827||195,313|
|Total liabilities and stockholders' equity||$||317,186||$||291,591|