Benzinga -
- Citi Trends Inc (NASDAQ: CTRN) reported a third-quarter FY22 sales decline of 15.6% year-on-year to $192.32 million, beating the consensus of $185.47 million.
- Comparable store sales decreased 18.3% versus last year.
- Gross margin of 39.8% fell 50 basis points Y/Y and expanded 240 basis points against Q3 FY19.
- The operating margin was 16.4%, and operating income for the quarter rose 172% to $31.6 million.
- The company held $77.8 million in cash and equivalents as of October 29, 2022.
- Quarter-end total inventory increased 1.3% versus last year.
- Adjusted EPS of $0.24 beat the analyst estimate of $(0.06).
- CEO David Makuen said, "As we look to the final quarter of the year, our stores are ready for the holiday season and are excited to help our customers Gift Big and Spend Less. With a successful Black Friday weekend in our rearview mirror, we look forward to many big selling days ahead as we close out this dynamic year."
- Outlook: Citi Trends reiterated its guidance for the second half of 2022. It expects a low single digit increase in second-half total sales compared to first-half sales.
- The company sees H2 gross margin to remain in the high 30s to low 40s range.
- Price Action: CTRN shares are trading higher by 16.34% at $26.99 on the last check Tuesday.
- Photo Via Wikimedia Commons