Citi Trends, Inc. Announces Expanded Capital Return Program

Staff Report From Savannah CEO

Tuesday, April 11th, 2017

Citi Trends, Inc. announced that its Board of Directors has expanded its capital return program to include the following:

a 33.3% increase in its quarterly dividend, from $0.06 to $0.08,

a new share repurchase program of up to $25 million,

maintain a minimum cash balance of $80 million, and

commitment to return excess cash to the Company's stockholders through additional dividends and buybacks.

Ed Anderson, Executive Chairman, commented, "These actions demonstrate the Board's commitment to thoughtfully and appropriately returning excess capital to stockholders while maintaining the financial flexibility required to grow our business. Just as with the successful completion of a $15 million repurchase program and the institution of a regular quarterly dividend in 2015, these decisions have been informed by the Board's extensive stockholder engagement and in-depth evaluations of the Company's balance sheet and strategic initiatives. We remain committed to creating, enhancing and responsibly returning value to our stockholders."

This expanded capital return program is designed to return available cash to stockholders while maintaining a minimum cash balance of $80 million. Considering practices in our industry and the retail experience of the Company's Board and management, as well as the Company's capital needs for its current strategic initiatives, the Board believes that this balance will provide the appropriate financial strength and flexibility. Pursuant to this expanded capital return program, the Board will regularly evaluate the best way to return excess cash to the Company's stockholders, through regular dividends, stock buybacks, and/or special dividends.

The increase to the quarterly dividend will begin with the second quarter dividend to be paid to stockholders in June 2017, consistent with the Company's typical timing for its second quarter dividend, subject to Board approval. The repurchase program announced today has no time limit, and the Company expects to fund the share repurchases from cash on hand. The expanded capital return program will be subject to continuing Board review and based on a number of factors, including business and market conditions, the Company's future financial performance and other investment priorities.