| Over a week ago | ||||
Citi Trends lowers FY23… Citi Trends lowers FY23 revenue growth view to negative mid single-digits to negative low single-digits, had previously seen growth down in low single-digits to up in low single-digits, consensus $775.3M. Lowers FY23 EBITDA view to $5M-$20M from $20M-$30M. The company now plans to open 5 stores from previous guidance of 5 to 10 new stores, and to remodel 10 to 20 stores from previous view of 25 to 30 stores. Full year capital expenditures are now expected to be $15M-$20M, down from $20M-$25M. | ||||
Reports Q1 revenue… Reports Q1 revenue $179.69M, consensus $180.25M. David Makuen, CEO, commented, "Against what remained a challenging macro backdrop for the low-income families that we serve, our first quarter results were in line with our previously stated guidance. During the quarter, we made progress rebuilding inventory in key areas of the business, which we believe will position us to recoup market share. Although we are seeing good response to our spring and early summer merchandise, our customers are being selective about what they put in their basket. That said, we continue to see strong shopper conversion, a clear signal that our assortments are resonating and the Citi Trends brand position remains healthy. With a macro environment that remains uncertain, we are prudently adjusting our outlook for the fiscal year, incorporating the impact of continued headwinds on our customers' spending through the first half with modest improvement in the second half. Importantly, we remain laser focused on controlling what we can control, including tight expense and capital management. Looking forward, we'll leverage our strong financial position to procure a fresh assortment of exciting products at amazing values that will set us up for successful back-to-school and holiday selling seasons." | ||||
| Over a month ago | ||||
Craig-Hallum lowered the… Craig-Hallum lowered the firm's price target on Citi Trends to $20 from $29 and keeps a Hold rating on the shares. Citi Trends delivered in-line Q4 results but offered Q1 and 2023 guidance well below consensus as inflationary pressures continue to hurt their core customer, the firm notes. | ||||
Sees FY23 revenue growth… Sees FY23 revenue growth down in low single-digits to up in low single-digits, consensus $794.4M. Sees FY23 gross margin to remain in the high thirties driven by continued inventory control and freight management, EBITDA of $20M-$30M with the company striving to meet or exceed its prior year result. The company plans to open 5 to 10 new stores, remodel 25 to 30 stores and close 10 to 15 underperforming stores as part of its ongoing fleet optimization; expecting to end FY23 with approximately 600 stores. Full year capital expenditures are expected to be $20M-$25M. Expects combined Q2 through Q4 improvements driven by operational efficiencies, tight SG&A control and a focus on trend development with liquidity to refine assortments | ||||
Consensus for Q1 revenue… Consensus for Q1 revenue is $212.05M. Sees Q1 operating loss, consensus for EPS is 90c. | ||||
Reports Q4 revenue… Reports Q4 revenue $209.5M, consensus $208.75M. CEO David Makuen commented, "I am pleased to report that we delivered on every aspect of our stated guidance for Q4 and the second half of 2022. During a highly challenging economic environment, especially for low income families, our annual sales were above 2019 levels at a healthy gross margin of 39.1%, and we successfully reduced operating expenses by 9% versus last year...Our customers are expected to remain under pressure through the first half of 2023, impacted by ongoing inflationary factors, in addition to the reduction in SNAP benefits and lower tax refunds. As a result, our first quarter is off to a slow start. However, we remain cautiously optimistic that our customers will experience relief from economic pressures over the course of the year and we are playing offense to drive comp store productivity, our highest priority. We are sharpening our focus on trend development and refining assortments to fuel incremental sales. We are planning the second half to deliver meaningfully improved results thanks to controlling what we can control and leveraging our strong balance sheet and healthy inventory position. I remain extremely confident in the power of our brand, our operating model and our team's ability to execute our plan." | ||||
| Over a quarter ago | ||||
EPS for the second half… EPS for the second half of Fiscal 2022 expected to be in the range of $3.80 to $3.88, or $1.02 to $1.10 as adjusted, compared to 73c in the second half of Fiscal 2019, or 77c as adjusted. The company now expects year-end cash balance of approximately $95 million to $105 million. Citi Trends: Expects low single digit increase in second half total sales compared to first half total sales; Expects gross margin to remain in the high 30s to low 40s range for the second half; Expects significantly less SG&A expense deleverage in the second half vs. the same period in the prior year as a result of swift expense reduction actions net of incremental lease expense from the sale-leaseback transactions; Expects second half operating income to be approximately in line with the second half of 2019. | ||||
Total sales for the… Total sales for the nine-week period ending December 31, 2022 of $171.9 million compared to $204.8 million in the same period in 2021 and $170.5 million in the same period in 2019, a decrease of 16.1% and an increase of 0.8%, respectively. Comparable store sales for the nine-week period ending December 31, 2022 decreased 17.5% versus the same period in 2021. David Makuen, CEO, said, "We are pleased with our holiday season performance, particularly in light of the continued inflationary pressure our customers experienced. Our sales were in line with our expectations thanks to our curated, on-trend gift assortment and amazing values, which resonated with our customers. In addition, we continued to deliver strong gross margin, driven by well managed inventory levels." | ||||
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Expects low single digit… Expects low single digit increase in second half total sales compared to first half total sales, gross margin to remain in the high 30s to low 40s range for the second half, significantly less SG&A expense deleverage in the second half vs. the same period in the prior year as a result of swift expense reduction actions net of incremental lease expense from the sale-leaseback transactions, second half operating income to be approximately in line with the second half of 2019. Expects year-end cash balance of $85M-$100M. Consensus for FY23 revenue is $791.17M. | ||||
