SAVANNAH, Ga. - Citi Trends, Inc. (NASDAQ: CTRN), a prominent specialty value retailer, announced its quarter-to-date holiday sales figures on Monday, revealing a slight dip in comparable store sales but overall performance that met the company's high expectations. The retailer, which caters to African American and multicultural families, reported sales of $179.5M for the period ending January 6, 2024, closely aligning with the $181.9M from the same period the previous year.
Despite a minor decrease of -0.3% in comparable store sales compared to Fiscal 2022, the company highlighted this as a notable improvement, marking a 600 basis points increase from the prior quarter's performance. David Makuen, CEO of Citi Trends, expressed satisfaction with the holiday results, attributing the steady sales to the company's strategic inventory investments and strong gross margin, which were driven by the success of their Ready. Set. GIFT! Campaign.
Looking ahead, Citi Trends is optimistic about the upcoming spring season and plans to leverage its new ERP system, integrate marketing strategies, and commence store remodels to enhance customer experience. The company reaffirmed its fiscal 2023 guidance, expecting a year-end cash balance between $80M and $90M. Full year total sales are anticipated to be down mid-single digits compared to fiscal 2022, with gross margin projected in the high thirties and EBITDA ranging from $1M to $7M.
For the fourth quarter, Citi Trends forecasts total sales to be approximately flat or up by low-single digits compared to the same quarter in 2022. Comp store sales are expected to range from down low-single digits to flat, with Q4 EBITDA predicted to be between $9M and $15M.
Citi Trends operates 603 stores across 33 states and is known for offering apparel, accessories, and home trends at reduced prices. The company's financial outlook is based on a press release statement and is subject to change due to various market conditions and risks, as outlined in their filings with the Securities and Exchange Commission.
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