Citi Trends Announces Third Quarter 2012 Results

  Citi Trends Announces Third Quarter 2012 Results

  Third quarter sales increased 4.1%; comparable store sales increased 0.5%

Third quarter 2012 loss per share of $0.25 compared with $0.46 loss last year

Business Wire

SAVANNAH, Ga. -- November 20, 2012

Citi Trends, Inc. (NASDAQ: CTRN) today reported results for the third quarter
of fiscal 2012.

Financial Highlights – Third quarter ended October 27, 2012

Total sales in the third quarter ended October 27, 2012 increased 4.1% to
$149.0 million compared with $143.1 million in the third quarter ended October
29, 2011. Comparable store sales increased 0.5%.

Net loss was $3.7 million, or $0.25 per diluted share, in the third quarter of
fiscal 2012, compared with a net loss of $6.8 million, or $0.46 per diluted
share, in the third quarter of fiscal 2011. Last year’s third quarter was
affected by severance costs of $1.2 million, incurred primarily in connection
with the elimination of 40 positions in the Company’s corporate offices,
distribution centers and store organization. The severance expense had an
adverse impact on loss per diluted share of $0.05 in the third quarter of
fiscal 2011.

The Company opened one store and relocated or expanded two others in the third
quarter of 2012, reaching a total store count of 513 at the end of the
quarter.

Financial Highlights – First three quarters ended October 27, 2012

Total sales in the first three quarters of fiscal 2012 increased 3.6% to
$479.0 million compared with $462.5 million in the same period of fiscal 2011.
Comparable store sales decreased 3.1%. Net loss was $1.5 million, or $0.10 per
diluted share, in the first three quarters of this year, compared with a net
loss of $4.7 million, or $0.32 per diluted share, in last year’s first three
quarters.

Investor Conference Call and Webcast

Citi Trends will host a conference call today at 9:00 a.m. ET. The number to
call for the live interactive teleconference is (212)231-2906. A replay of
the conference call will be available until November 27, 2012, by dialing
(402)977-9140 and entering the passcode, 21602893. The live broadcast of the
quarterly conference call will be available online at the Company’s website,
www.cititrends.com, as well as http://ir.cititrends.com/events.cfm, beginning
today at 9:00 a.m. ET. The online replay will follow shortly after the call
and continue through November 27, 2012.

During the conference call, the Company may discuss and answer questions
concerning business and financial developments and trends after quarter-end.
The Company’s responses to questions, as well as other matters discussed
during the conference call, may contain or constitute information that has not
been disclosed previously.

The Company’s next scheduled press release is scheduled for February 13, 2013
and will consist of a report on fourth quarter sales results.

About Citi Trends

Citi Trends, Inc. is a value-priced retailer of urban fashion apparel and
accessories for the entire family. The Company operates 513 stores located in
29 states. Citi Trends’ website address is www.cititrends.com. CTRN-E

Forward-Looking Statements

All statements other than historical facts contained in this news release,
including statements regarding our future financial results and position,
business policy and plans and objectives of management for future operations,
are forward-looking statements that are subject to material risks and
uncertainties. The words “believe,” “may,” “could,” “plans,” “estimate,”
“continue,” “anticipate,” “intend,” “expect” and similar expressions, as they
relate to Citi Trends, are intended to identify forward-looking statements.
Statements with respect to earnings guidance are forward-looking statements.
Investors are cautioned that any such forward-looking statements are subject
to the finalization of the Company’s quarterly financial and accounting
procedures, are not guarantees of future performance or results and are
inherently subject to risks and uncertainties, some of which cannot be
predicted or quantified. Actual results or developments may differ materially
from those included in the forward-looking statements as a result of various
factors which are discussed in Citi Trends, Inc. filings with the Securities
and Exchange Commission. These risks and uncertainties include, but are not
limited to, uncertainties relating to economic conditions, growth risks,
consumer spending patterns, competition within the industry, competition in
our markets and the ability to anticipate and respond to fashion trends. Any
forward-looking statements by the Company, with respect to earnings guidance
or otherwise, are intended to speak only as of the date such statements are
made. Except as required by applicable law, including the securities laws of
the United States and the rules and regulations of the Securities and Exchange
Commission, Citi Trends does not undertake to publicly update any
forward-looking statements in this news release or with respect to matters
described herein, whether as a result of any new information, future events or
otherwise.


CITI TRENDS, INC.
CONDENSED STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except per share data)

                             Thirteen Weeks Ended    Thirteen Weeks Ended
                               October 27, 2012          October 29, 2011
                               (unaudited)               (unaudited)
Net sales                      $     148,985             $     143,067
Cost of sales                       97,808                  94,909     
Gross profit                         51,177                    48,158
Selling, general and                 51,132                    53,059
administrative expenses
Depreciation and                     5,970                     6,454
amortization
Asset impairment                    660                     696        
Loss from operations                 (6,585     )              (12,051    )
Interest income                      66                        61
Interest expense                    (50        )             (17        )
Loss before income tax               (6,569     )              (12,007    )
benefit
Income tax benefit                  (2,869     )             (5,246     )
Net loss                       $     (3,700     )        $     (6,761     )
                                                         
Basic net loss per common      $     (0.25      )        $     (0.46      )
share
Diluted net loss per           $     (0.25      )        $     (0.46      )
common share
                                                         
                                                         
Weighted average shares
used to compute basic net           14,677                  14,602     
loss per share
Weighted average shares
used to compute diluted             14,677                  14,602     
net loss per share
                                                         
                                                         
                                                         
                                                         
                               Thirty-Nine Weeks         Thirty-Nine Weeks
                               Ended                     Ended
                               October 27, 2012          October 29, 2011
                               (unaudited)               (unaudited)
Net sales                      $     478,997             $     462,468
Cost of sales                       308,739                 295,789    
Gross profit                         170,258                   166,679
Selling, general and                 154,733                   154,819
administrative expenses
Depreciation and                     18,153                    18,389
amortization
Asset impairment                    660                     2,305      
Loss from operations                 (3,288     )              (8,834     )
Interest income                      194                       180
Interest expense                    (163       )             (27        )
Loss before income tax               (3,257     )              (8,681     )
benefit
Income tax benefit                  (1,736     )             (3,982     )
Net loss                       $     (1,521     )        $     (4,699     )
                                                         
Basic net loss per common      $     (0.10      )        $     (0.32      )
share
Diluted net loss per           $     (0.10      )        $     (0.32      )
common share
                                                         
                                                         
Weighted average shares
used to compute basic net           14,662                  14,584     
loss per share
Weighted average shares
used to compute diluted             14,662                  14,584     
net loss per share
                                                                          

                                                         
CITI TRENDS, INC.
CONDENSED BALANCE SHEETS (unaudited)
(in thousands)
                                                              
                                         October 27, 2012     October 29, 2011
                                         (unaudited)          (unaudited)
Assets:
Cash and cash equivalents                $     36,195         $     33,225
Short-term investment securities               4,734                -
Inventory                                      146,700              127,156
Prepaid and other current assets               20,023               27,836
Assets held for sale                           1,415                1,415
Property and equipment, net                    76,197               95,369
Long-term investment securities                14,957               19,760
Other noncurrent assets                       2,268               3,308
Total assets                             $     302,489        $     308,069
                                                              
Liabilities and Stockholders’
Equity:
Accounts payable                         $     67,098         $     64,120
Accrued liabilities                            25,691               25,126
Other current liabilities                      2,544                3,363
Noncurrent liabilities                        11,126              12,974
Total liabilities                              106,459              105,583
                                                              
Total stockholders’ equity                    196,030             202,486
Total liabilities and stockholders’      $     302,489        $     308,069
equity
                                                                    

Contact:

Citi Trends, Inc.
Bruce Smith, 912-443-2075
Chief Financial Officer
or
Ed Anderson, 912-443-3705
Chairman & Chief Executive Officer