Citi Trends Announces Record Q1, raises 2021 guidance, and focuses on accelerating new store growth
Tuesday, May 25, 2021
Citi Trends, Inc. (NASDAQ: CTRN), today reported results for the first quarter ended May 1, 2021.
David Makuen, Chief Executive Officer, commented, “We had a very strong start to our fiscal year, with record first quarter results for total sales, gross margin and operating margin, building on our momentum from last year despite the backdrop of the continued pandemic. Our robust, broad-based topline performance is attributed to our differentiated business model that continues to meet the needs of our customers through our highly curated merchandise across our six “CITIs,” combined with a unique and compelling shopping experience that we look to amplify even further.”
First quarter total sales increased 145.8% vs Q1 2020 and 39.2% vs Q1 2019
First quarter gross margin increased 1,530 bps to 42.6%
First quarter operating margin of 13.7% compared to (23.7%) in Q1 2020
Earnings per diluted share of $3.23 compared to ($2.00) in Q1 2020
The Company is encouraged by its second quarter to-date sales performance, which is above its internal expectations. On the heels of a record first quarter, for the full year 2021, the Company is raising its guidance and expects to generate total sales of $970 to $990 million, an increase of approximately 24% to 27% as compared to fiscal years 2020 and 2019. This would result in expected earnings per diluted share in a range of $4.55 to $4.75, an increase of 96% to 105% compared to 2020 and an increase of 223% to 237% compared to 2019.
Earlier this year, Citi Trends announced their goal to invest in physical infrastructure – remodeling 150 stores and growing their footprint with at least 100 new stores. The initiatives will be part of a bigger-picture, three-year plan. The plans include additional efforts to invest in infrastructure improvements, and to increase their top-line sales and operating income.
Makuen continued, “Looking ahead, we feel very good about our overall positioning for the rest of fiscal 2021 and beyond. As we continue to enhance the Citi Trends experience for our customers and execute against our strategic priorities, we are well ahead of our previously shared long-term plan and expect to achieve our growth target of $1 billion in sales sooner than originally planned. As such, our board of directors and leadership team are exploring new capital allocation strategies designed to accelerate our new store growth. We are confident that our growth strategies and the advantages of our business model will continue to fuel market share gains and drive long-term sustainable growth.”
Source: Citi Trends IR 2021-05-25
Photo Credit: Unsplash
About Citi Trends
Citi Trends, Inc. is a growing specialty value retailer of apparel, accessories and home trends for way less spend primarily for African American and Latinx families in the United States. The Company operates 584 stores located in 33 states. Citi Trends’ website address is www.cititrends.com.