Citi Trends, Inc. (NASDAQ: CTRN), a leading specialty value retailer of apparel, accessories and home trends for way less spend primarily for African American and multicultural families in the United States, today reported results for the fourth quarter and full year ended February 3, 2024, both of which included an additional week as compared to the comparable prior year periods.

Financial Highlights – Fourth Quarter 2023

• Total sales of $215.2 million increased 2.7% vs. Q4 2022; the extra week contributed $11.2 million to total sales in the fourth quarter of fiscal 2023; comparable store sales, calculated on a 13-week to 13-week basis, decreased 1.5% compared to Q4 2022

• Gross margin of 39.1% vs. 39.5% in Q4 2022

• Operating income of $3.9 million, or $5.1 million as adjusted*, compared to $7.4 million in Q4 2022 or $7.5 million as adjusted*

• Net income of $3.6 million, $4.4 million as adjusted*, compared to $6.6 million in Q4 2022 or $6.8 million as adjusted*

• Adjusted EBITDA* of $10.0 million compared to $12.3 million in Q4 2022

• Diluted EPS of $0.42, or $0.53 as adjusted*, vs. diluted EPS of $0.81 in Q4 2022 or $0.83 as adjusted*

Financial Highlights – Full Year 2023

• Total sales of $747.9 million decreased 5.9% vs. 2022; comparable stores sales, calculated on a 52-week to 52-week basis, decreased 6.8% vs. 2022

• Gross margin of 38.1%, or 38.2% as adjusted*, vs. 39.1% in 2022

• Operating loss of $19.5 million, or $17.5 million as adjusted*, vs. operating income of $75.3 million in 2022, or $11.4 million as adjusted*

• Net loss of $12.0 million, or $10.5 million as adjusted*, compared to net income of $58.9 million in 2022, or $9.4 million as adjusted*

• Adjusted EBITDA* of $1.5 million vs. $32.0 million in 2022

• Net loss per share of $1.46, or $1.28 as adjusted*, vs. diluted EPS of $7.17 in 2022, or $1.14 as adjusted*

• Opened 5 new stores, remodeled 15 stores and closed 14 stores to end the year with 602 locations

• Cash of $79.7 million at year-end, with no debt and no borrowings under a $75 million credit facility

• Year-end inventory increased 23% vs. 2022, lapping insufficient levels last year, strategic category rebuilds and earlier receipts for tax refund season and an earlier Easter; exiting Q1 2024, inventory expected to be up low-single digits to Q1 2023