US' Citi Trends posts $179.1 mn sales in Q3 2024

The company expects results for Q3 to be above the company’s previous outlook of second half comparable store sales results flat to up low single digits compared to prior year. The company’s gross margin for Q3 2024 is expected to be 39.8 per cent, an increase of 160 basis points compared to Q3 2023. Adjusted EBITDA for Q3 2024 is expected to be at a loss of $3.3 million, which includes strategic costs for in-depth customer and market research and costs to improve operational processes, Citi Trends said in a press release.

“We are pleased with our sales and gross margin performance in Q3 2024 and are excited to appoint Ken to the permanent role of chief executive officer (CEO). In a short period of time, Ken has improved the Company’s business performance and is laying the groundwork for long term shareholder value creation. Ken’s deep retail experience and his strong track record of leading significant value creation as CEO in past companies gives us confidence that he will develop and execute Citi Trends’ long term strategic plan to more than triple our company value,” said Peter Sachse, chairman of the board at Citi Trends.

“The Company is uniquely positioned with nearly 600 stores serving our core African American customers in their neighbourhoods, creating a defensible moat against competition. We are fortunate to have a loyal and frequent base of shoppers who have quickly responded to our improved product strategies, including exceptional prices on branded product. Working with our talented, highly engaged employees, I am confident we will significantly improve business performance and shareholder value,” said Ken Seipel, chief executive officer (CEO) of Citi Trends. “I am pleased to continue working with Peter and the entire board of directors on the future of Citi Trends. Further, as a shareholder, I would like to acknowledge the board of directors for creating a progressive compensation package that is aligned with shareholder interests with an incentive for significant share price appreciation”.

Along with the financial statement, the company in its press release stated that it appointed Kenneth (Ken) Seipel as CEO, effective November 18, 2024. Seipel has been serving as the interim CEO of Citi Trends since June 1, 2024, and on the board of directors since 2019. Concurrently, the board appointed Peter Sachse, the current executive chairman of the board, as chairman of the board.

Fibre2Fashion News Desk (SG)