Citi Trends Announces 2020 Holiday Sales Results and Updates Long-term Strategic Plan
Wednesday, January 13th, 2021
Citi Trends, Inc. (NASDAQ: CTRN), the leading value retailer of apparel, accessories and home trends for way less spend primarily for African American and Latinx families in the United States, today announced results for its holiday selling period.
Total sales for the nine-week period ended January 2, 2021 increased 12.9% to $192.5 million compared with $170.5 million in the same period of 2019 and comparable store sales increased 10.3% versus 3.6% in the same period last year.
Makuen continued, “Given our strong quarter-to-date results, we now expect positive comparable store sales in the low double-digit range for the fourth quarter. We enter 2021 in a strong position and are excited about the underlying momentum of our business. We are committed to the same merchandising and marketing strategies that have driven our recent success, and we believe we are well positioned to continue capitalizing on the demand for our brand and serving our loyal customer base.”
Based on the quarter-to-date trends, the Company expects fourth quarter 2020 positive comparable store sales in the low double-digit range. For the full year 2020, the Company expects total sales to be only slightly below 2019 total sales, despite the fact that the Company’s stores were closed for approximately 16% of the total available store days in 2020 due primarily to the impact of COVID-19. The Company expects fourth quarter 2020 diluted earnings per share of $1.22 to $1.32 on an adjusted basis* compared to $0.88 in the fourth quarter of 2019. The Company expects full year 2020 diluted earnings per share of $1.85 to $1.95 on an adjusted basis* compared to $1.56 in 2019.
Capital Return Program Update
In the fourth quarter to-date, the Company has repurchased approximately 316,000 shares of its common stock at an aggregate cost of $11.9 million. As of January 12, 2021, $38.2 million remains available under the Company’s existing share repurchase authorization.
Long-Term Strategic Plan Update
The Company has revised its investor presentation to include updates on the execution of its strategic initiatives as well as other updates based on the Company’s ongoing review of its three-year strategic plan. Such presentation includes the following information, among other things:
- Increasing top-line sales to more than $1 billion in fiscal 2023
- Comparable store sales growth of ~3% per year
- Growing the fleet with at least 100 new stores by the end of fiscal 2023
- Remodeling at least 150 stores by the end of fiscal 2023
- Investing in infrastructure improvements for merchandising, supply chain and stores
- Operating income growth at a compound annual growth rate of 20%+ per year
- Diluted earnings per share growth at a compound annual growth rate of 25%+ per year
The presentation is available online at www.cititrends.com, under the Investor Relations section. This presentation will be referenced by management at the ICR Conference as described below.
As previously announced, the Company will be participating in the virtual ICR Conference to be held on January 11-14, 2021. The Company is scheduled to present on Tuesday, January 12, 2021, at 1:30 p.m. Eastern Time. A live audio webcast of the Company’s presentation, in addition to an updated investor presentation, will be available online at www.cititrends.com, under the Investor Relations section. Participants should log in approximately 10 minutes prior to the start of the presentation. A replay will also be available for 90 days following the event.