Citi Trends Announces Fourth Quarter and Fiscal 2013 Sales
SAVANNAH, Ga. -- February 12, 2014
Citi Trends, Inc. (NASDAQ: CTRN) today reported unaudited sales results for
the fourth quarter and fiscal year ended February 1, 2014.
The Company’s 2013 fiscal year contained 52 weeks, while the 2012 fiscal year
contained 53 weeks. Accordingly, the comparison of total sales between fiscal
years is affected by the extra week of sales at the beginning of fiscal 2012.
Total sales in fiscal 2013 decreased 5.0% to $622.2 million compared with
$654.7 million in fiscal 2012, with the extra week at the beginning of last
year contributing approximately $21 million. For comparable store sales, the
Company is reporting on a comparable weeks basis (i.e. the 52 weeks ended
February 1, 2014 compared to the 52 weeks ended February 2, 2013). Comparable
store sales on a comparable weeks basis decreased 1.6% for the year.
The Company’s 2013 fiscal fourth quarter contained 13 weeks, while the 2012
fiscal fourth quarter contained 14 weeks. Accordingly, the comparison of total
sales between quarters is affected by an extra week of sales at the beginning
of the fourth quarter of fiscal 2012. Total sales in fiscal 2013’s fourth
quarter decreased 10.5% to $157.2 million compared with $175.7 million in last
year’s fourth quarter, with the extra week at the beginning of fiscal 2012’s
fourth quarter contributing approximately $12 million to total sales. For
comparable store sales, the Company is reporting on a comparable weeks basis
(i.e. the 13 weeks ended February 1, 2014 compared to the 13 weeks ended
February 2, 2013). Comparable store sales on a comparable weeks basis
decreased 3.5% for the quarter. By month, comparable store sales on a
comparable weeks basis increased 0.4% in November and decreased 4.6% and 6.5%
in December and January, respectively.
Ed Anderson, Chairman and Chief Executive Officer, commented, “We are
disappointed with the 3.5% comparable store sales decrease in the fourth
quarter. We had expected more sales due to the positive momentum from the
previous two quarters as well as a slight sales increase in November.
The hanging apparel businesses - ladies, men’s and kids - all decreased in the
fourth quarter. Our strategy for cold weather product, particularly in ladies
apparel, proved to be too conservative and we missed sales as a result. In
addition, winter storms caused a large part of the January sales decrease.
There were several positives in the quarter. The accessories, including
footwear, and home businesses continued to deliver sales increases. Cost of
sales as a percentage of sales improved approximately 400 basis points due to
better inventory management, which resulted in fewer clearance markdowns.
Also, despite sales being below expectations, we ended the quarter with 10%
less inventory than a year ago.
We believe we are positioned for a successful Spring selling season, and we
continue to feel very good about our progress at Citi Trends.”
Investor Conference Call and Webcast
The Company will report complete financial results for its fourth quarter and
fiscal 2013 before the market opens on March 14, 2014. Citi Trends will host a
conference call on the same day at 9:00 a.m. ET. The number to call for the
live interactive teleconference is (212)231-2908. A replay of the conference
call will be available until March 21, 2014, by dialing (402)977-9140 and
entering the passcode, 21705725.
The live broadcast of Citi Trends’ quarterly conference call will be available
online at the Company's website, www.cititrends.com, as well as
http://ir.cititrends.com/events.cfm, on March 14, 2014 beginning at 9:00 a.m.
ET. The online replay will follow shortly after the call and will be available
for replay for one year.
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.
About Citi Trends
Citi Trends, Inc. is a value-priced retailer of urban fashion apparel and
accessories for the entire family. The Company operates 505 stores located in
29 states. Citi Trends’ website address is www.cititrends.com. CTRN-E
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 year-end 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
Citi Trends, Inc.
Bruce Smith, 912-443-2075
Chief Financial Officer
Ed Anderson, 912-443-3705
Chairman & Chief Executive Officer
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