Citi Trends Slide on Numbers

Citi Trends Inc (NASDAQ:CTRN) saw its shares go slightly downhill Tuesday on last fiscal year’s statistics.

The company reported third-quarter FY21 sales growth of 14.5% year-on-year, to $227.96 million, beating the analyst consensus of $220.67 million. EPS of $1.03 beat the analyst consensus of $0.45.

The comparable store sales increased 13.1% versus last year. The gross margin of 40.3% fell 150 basis points Y/Y and expanded 290 basis points against Q3 FY19.

The operating margin was 5.1%, and operating income for the quarter rose 23.9% to $11.6 million.
The company held $47.5 million in cash and equivalents as of October 30, 2021.

Quarter-end total inventory increased 10.9% versus last year.

In addition, the company’s board authorized a $30.0 million share repurchase program.

“Looking ahead to fiscal 2022, we are excited to continue our transformation and remain confident in the trajectory of the business,” said CEO David Makuen.

At the end of the third quarter, $8.1 million remained available under the Company’s existing share repurchase authorization. In addition, the Company’s board of directors today announced the authorization of another $30.0 million share repurchase program.

Looking to the future, Citi Trends raised FY21 sales outlook to $1.0 billion – $1.05 billion (prior view $990 million – $1.01 billion) versus the consensus of $1.0 billion.

The company also raised FY21 EPS guidance to $6.95 – $7.10 (previously $6.30 – $6.50), above the consensus of $6.54.

CTRN shares are trading lower by 75 cents, or nearly 1%, at $77.50 in early Tuesday.