Citi Trends, Inc. reported results for the second quarter of fiscal 2017.

Financial Highlights - Second quarter ended July 29, 2017

Total sales in the second quarter ended July 29, 2017 increased 7.0% to $166.2 million compared with $155.3 million in the second quarter ended July 30, 2016. Comparable store sales increased 4.6% in the quarter.

The Company had a net loss of $(0.2) million, or net income of $0.4 million when adjusted for proxy contest-related expenses*, in the second quarter of 2017, compared with a net loss of $(0.1) million in last year's second quarter. Loss per diluted share in this year's second quarter was $(0.01), while earnings per diluted share were $0.03 when adjusted for proxy contest-related expenses*, compared with a loss per diluted share of $(0.01) in the second quarter of 2016.

During the second quarter, the Company opened seven new stores and relocated or expanded five other stores.

Financial Highlights - First half ended July 29, 2017

Total sales in the first half of fiscal 2017 increased 4.9% to $366.2 million compared with $348.9 million in the first half of fiscal 2016. Comparable store sales increased 2.6% in the first half of this year.

The Company had net income of $8.7 million, or $10.4 million when adjusted for proxy contest-related expenses*, in the first half of 2017, compared with $8.6 million in last year's first half. Earnings per diluted share in the first half of 2017 were $0.59, or $0.71 when adjusted for proxy contest-related expenses*, compared with $0.59 in the first half of 2016.

Bruce Smith, Acting Chief Executive Officer, commented, "We were very pleased with the second quarter results, particularly the 4.6% increase in comparable store sales which was an acceleration from the first quarter and included positive contributions from all five of our major merchandise categories. The 21% increase in adjusted net income* during the first half of 2017 reflects strong execution by the Citi Trends' team and confirms that our strategic direction remains on track."

Capital Return Program

In connection with an expanded capital return program announced in April 2017, nearly all of the $25 million of share repurchases authorized by the Company's Board of Directors were completed during the second quarter of 2017. In addition, the Company announced that its Board of Directors has declared a quarterly cash dividend of $0.08 per common share, payable on September 12, 2017, to shareholders of record as of the close of business on August 29, 2017. The $0.08 quarterly dividend represents a 33.3% increase from the dividend rate paid in 2016, as prescribed by the expanded capital return program.