Citi Trends, Inc. reported unaudited sales for the first two months of the fourth quarter of fiscal 2018, in advance of its investor presentation at the ICR Conference on January 15, 2019.

Holiday Sales – November and December 2018

Total sales in the first two months of the fourth quarter of 2018 decreased 1.9% to $161.9 million compared with $165.1 million in the same period of 2017. Comparing the nine weeks ended January 5, 2019 with the nine weeks ended January 6, 2018, comparable store sales decreased 0.7% during the two-month period, following a 4.8% increase in last year’s fiscal November/December timeframe.

Total sales in the first 11 months of 2018 increased 3.1% to $730.2 million compared with $708.2 million in the same period of 2017. Comparable store sales increased 1.4% in the first 11 months of 2018, comparing the 48 weeks ended January 5, 2019 with the 48 weeks ended January 6, 2018.

Bruce Smith, President and Chief Executive Officer, commented, “Comparable store sales are up 1.4% for the 11 months year-to-date; however, similar in many respects to what we saw in the third quarter, fashion misses in November and December caused comparable store sales to decrease 0.7%. Importantly, we are on track to enter the spring season in a clean inventory position.”

Based on the November/December sales results and expectations for the remainder of the fourth quarter of fiscal 2018, the Company has revised its diluted earnings per share guidance downward and now expects it to be in a range of $0.54 to $0.58 which, at its midpoint, would reflect a 47% increase from the $0.38 earned in the fourth quarter of 2017. Full year fiscal 2018 guidance is in a range of $1.60 to $1.64 which, at its midpoint, represents a 57% increase from the $1.03 earned in the full year fiscal 2017.

Capital Return Program

As announced on November 30, 2018, the Company’s Board of Directors authorized another $25 million share repurchase program. Since that announcement, the Company has repurchased shares at a total cost of approximately $12 million, and since the beginning of 2018, the Company has returned approximately $41 million to its shareholders in the form of share repurchases and dividends.

Long-Term Strategic Planning

In connection with the Board of Directors’ ongoing review and update of the Company’s long-term strategic plan, the Company has updated its investor presentation to include additional information regarding growth opportunities, merchandising and operational initiatives and long-term goals. Such information includes, among other things:

• An update of the Company’s long-term goals - annual store square footage growth of 4% to 5%, including a test of the opportunity in Hispanic-dominated markets, and $4 of earnings per share within the next five years

• Systems initiatives, including store level merchandise planning and markdown optimization

• Projects to improve logistics and freight efficiencies

• Return of excess capital to shareholders