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

Financial Highlights - Third quarter ended October 28, 2017

Total sales in the third quarter ended October 28, 2017 increased 10.1% to $176.9 million compared with $160.7 million in the third quarter ended October 29, 2016. Comparable store sales increased 7.4% in the quarter.

The Company had net income of $0.6 million, or $0.05 per diluted share, in the third quarter of 2017, compared with a net loss of $(0.8) million, or $(0.06) per diluted share, in last year's third quarter.

During the third quarter, the Company opened five new stores, relocated or expanded two stores, and closed one store.

Financial Highlights - First three quarters ended October 28, 2017

Total sales in the first three quarters of fiscal 2017 increased 6.6% to $543.1 million compared with $509.7 million in the same period of fiscal 2016. Comparable store sales increased 4.1% in the first three quarters of this year.

The Company had net income of $9.3 million, or $11.1 million when adjusted for proxy contest-related expenses*, in the first three quarters of 2017, compared with $7.8 million in the same period last year. Earnings per diluted share in the first three quarters of 2017 were $0.65, or $0.77 when adjusted for proxy contest-related expenses*, compared with $0.53 in the first three quarters of 2016.

Bruce Smith, Acting Chief Executive Officer, commented, "We are extremely pleased to report strong sales and operating results for the third quarter. The momentum that we saw in recent quarters continued at an accelerated pace in the third quarter and is being driven by our delivery of fashion-right, value-priced merchandise to our customers. Comparable store sales growth was consistently strong throughout the quarter, with a 7% increase in August and 8% increases in both September and October. Importantly, all five of our major merchandise categories once again contributed to the sales increases.

"In addition to 10% total sales growth in the third quarter, we were pleased with an improvement in gross margin and significant expense leverage, all of which led to operating margin expansion of 140 basis points and a $1.4 million increase in net income.

"We believe that we have entered the fourth quarter in a high-quality, liquid inventory position. Early reads on the holiday season have been positive, as comparable store sales for the first three weeks of November have been up 7% on top of a 6% increase in the same three weeks last year."