Citi Trends Announces Positive Holiday Sales Results for Quarter-to-Date Period

On January 13, 2025, Citi Trends, Inc. (NASDAQ: CTRN) revealed its unaudited sales results for the quarter-to-date period ending January 4, 2025, and reiterated its guidance for fiscal 2024. The company, known for its specialty value retailing of apparel, accessories, and home trends for African American and multicultural families in the United States, reported total holiday sales of $174.4 million for the period, which exceeded expectations.

For the quarter-to-date fiscal 2024, Citi Trends experienced a substantial comparable store sales growth of 7.1%, aligning with the enhanced top-line momentum observed in Q3 Fiscal 2024. CEO Ken Seipel remarked on the positive results, noting that the company’s revised product assortment and appealing off-price deals resonated well with its targeted customer base. The 7.1% increase in comparable store sales was attributed to enhancements in both foot traffic and average basket value.

Seipel expressed gratitude to the Citi Trends team for their commitment during the holiday season, emphasizing the collaborative effort across various departments to ensure customer satisfaction. The holiday sales performance has positioned the company to anticipate sales and EBITDA results for the second half of Fiscal 2024 to surpass initial projections, reflecting customers’ favorable response to the adjusted product value strategy and operational enhancements.

Looking ahead, the company reiterated its outlook for the second half of Fiscal 2024, with expectations set as follows:
– Second half comparable store sales predicted to be at the upper end of the low to mid-single digits range compared to the second half of fiscal 2023.
– Anticipated flat to slightly down low-single digits total sales due to factors such as the 53rd week last year and store closures.
– Second half gross margin estimated at around 39%.
– EBITDA for the second half expected to be on the high end of the range between $1.5 million to $4 million.
– Citi Trends plans to conclude fiscal 2024 with approximately 590 stores.
– Foreseen year-end cash balance in the range of $60 million to $65 million.
– Capital expenditures projected to be between $14 million to $18 million for the full year.

Additionally, Citi Trends provided insights on the outlook for the fourth quarter of Fiscal 2024, including expectations for comparable store sales and total sales performance. The company expects to provide further information during its presentation at the 2025 ICR Conference, with a live audio webcast accessible on the company’s website.

Citi Trends continues to navigate forward looking decisively while acknowledging potential risks and uncertainties, with a strategic focus on engaging with evolving consumer trends and optimizing its operational capabilities.

Contact:
Tom Filandro
ICR, Inc.
Email: [email protected]

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Citi Trends’s 8K filing here.

About Citi Trends

Citi Trends, Inc operates as a value retailer of fashion apparel, accessories, and home goods. The company offers apparel, such as fashion sportswear and footwear for men and ladies, as well as apparel for kids, including newborns, infants, toddlers, boys, and girls; sleepwear, lingerie, and scrubs for ladies; and kids uniforms and accessories.