Fourth quarter gross margin increased 300 bps to 42.7%

Fourth quarter operating margin expanded 410 bps to 9.4% compared to 5.3% in the prior year period

Expects to deliver full year 2021 total sales growth of 11.0% to 15.0%

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 reported results for the fourth quarter and full year ended January 30, 2021.

Financial Highlights – 13-week fourth quarter ended January 30, 2021

• Total sales increased 19.4% to $251.9 million compared to $211.0 million in the fourth quarter of 2019

• Comparable store sales increased 16.7%; the sixth consecutive quarter of positive growth including open-only stores for the first quarter of 2020

• Gross margin increased 300 bps to 42.7% compared to 39.7% in the fourth quarter of 2019, reflecting strong full-price selling and fewer markdowns, marking the third consecutive quarter of expansion

• As a percent of sales, selling, general and administrative expenses decreased 60 bps to 31.5% compared to the fourth quarter of last year

• Operating income was $23.7 million, an increase of 110.6% compared to $11.3 million in the fourth quarter of 2019, for an operating margin of 9.4% compared to 5.3% in the prior year

• Earnings per diluted share was $1.81 compared to $0.84 in the fourth quarter of 2019

• Total inventory decreased 24.9% and comparable store inventory decreased 40.3% compared to the end of 2019

• Repurchased approximately 395,000 shares of common stock at an aggregate cost of $16.7 million during the quarter, funded from cash on hand; $33.4 million remained available at the end of fiscal 2021 and $22.2 million remained available as of March 15, 2021 under the previously announced authorizations