FX.co ★ Citi Trends Posts Narrower-than-expected Q1 Loss; Revises FY24 Comps View; To Close 10 To 15 Stores

Citi Trends, Inc. (CTRN), a value retailer specializing in fashion apparel, accessories, and home goods, announced on Tuesday that its first-quarter net loss decreased to $3.43 million, compared to a loss of $6.64 million in the same period last year.

The net loss per share stood at $0.42, an improvement from the $0.81 loss per share recorded a year ago. On an adjusted basis, the loss per share was $0.32, compared to $0.66 last year.

Net sales experienced a 3.7 percent increase, rising to $186.29 million from $179.69 million in the previous year.

Market analysts had anticipated the company to report a loss of $0.35 per share on revenues of $187.37 million, based on estimates compiled by Thomson Reuters. These forecasts typically exclude special items.

Comparable store sales, evaluated on a 13-week to 13-week comparable basis, saw a 3.1 percent uptick.

Citi Trends also updated its fiscal 2024 outlook, now projecting comparable store sales growth in the low to mid-single digits, a slight reduction from its earlier forecast.

The company expects its full-year gross margin to expand by approximately 75 to 100 basis points, aligning with its previous guidance.

The EBITDA forecast remains unchanged, anticipated to be between $4 million and $10 million.

As part of its fleet optimization strategy, Citi Trends plans to open up to five new stores, remodel approximately 40 locations, and close 10 to 15 underperforming stores.

The company projects it will conclude fiscal 2024 with around 595 stores.