Citi Trends Announces First Quarter 2017 Results and Declares Quarterly Dividend
Thursday, May 18th, 2017
Citi Trends, Inc. reported results for the first quarter of fiscal 2017.
Financial Highlights - First quarter ended April 29, 2017
Total sales in the first quarter ended April 29, 2017 increased 3.2% to $200.0 million compared with $193.7 million in the first quarter ended April 30, 2016. Comparable store sales increased 1.0% in the quarter.
On a GAAP basis, the Company had net income of $8.9 million, or $10.0 million when adjusted for proxy contest-related expenses*, in the first quarter of 2017, compared with $8.7 million, in last year's first quarter. On a GAAP basis, earnings per diluted share in this year's first quarter were $0.60, or $0.68 when adjusted for proxy contest-related expenses*, compared with $0.60 per diluted share in the first quarter of 2016.
Bruce Smith, Acting Chief Executive Officer, commented, "Despite a challenging start to the quarter which was negatively impacted by later tax refund disbursements, we are pleased to have delivered positive comparable store sales and a 14% increase in net income adjusted for proxy contest expenses. The success in the quarter confirms that our strategic direction remains on track as we continue to diversify our offerings into complementary product lines, while maintaining a keen focus on delivering fashion-right and value-priced merchandise that resonates with our customer base. In particular, our non-apparel business, accessories and home, which now comprises 37% of our merchandise mix, continues to perform well. The accessories division has had comparable store sales increases in 28 of the last 31 quarters, while the home division increased for the 19th consecutive quarter. While adding significantly to the Company's sales, the non-apparel business consistently delivers gross margin above the Company-average, making our merchandise offering even more profitable."
During the first quarter, the Company opened six new stores, relocated or expanded two other stores and closed one store.
In addition, the Company announced that its Board of Directors has declared a quarterly dividend of $0.08 per common share, reflecting a 33% increase in the dividend rate as announced previously in connection with the Company's expanded capital return program. The dividend is payable on June 13, 2017, to shareholders of record as of the close of business on May 30, 2017.