US' Citi Trends registers sales of $173.6 million in Q2 FY23

The company has posted a gross margin of 38.2 per cent in the second quarter of fiscal 2023 as compared to 38.1 per cent in the second quarter of fiscal 2022; 150 bps increase to the first quarter of fiscal 2023.

Citi Trends has registered total liquidity of approximately $141 million at the end of the quarter, made up of $65.8 million of cash, no borrowings under a $75 million credit facility, and no debt. During the second quarter of fiscal 2023, the company opened five new stores, closed two underperforming locations and remodeled eight stores, ending the quarter with 611 stores.

“We are pleased with our second quarter results that reflect positive momentum for both the top line and gross margin, against a continued challenging macro backdrop. The quarter was highlighted by significant sequential comparable store sales acceleration from the first quarter, a strong gross margin of 38.2 per cent and well managed expenses. Importantly, we experienced improved traffic levels and strong conversion throughout the quarter, signaling that our product assortment, strengthened by our strategic inventory rebuild in key areas of the business, is resonating with our loyal customers,” David Makuen, chief executive officer, said.

“I am incredibly proud of how our team managed the business, while maintaining a laser focus on our strategic priorities and taking decisive actions that reflect our deep connection and understanding of our customers. While the discretionary landscape remains under pressure, we are reiterating our guidance for the fiscal year that incorporates our continued efforts to improve what we can control. We are excited about our back-to-school and early Fall assortments showcased in our unique in-store experience that positions Citi Trends as a one-stop solution for trends for the entire family in their local neighborhoods,” Makuen continued.

Full year total sales are expected to be in the range of negative mid single-digits to negative low single-digits as compared to fiscal 2022. Full year gross margin expected to be in the high thirties. The company plans to open 5 new stores, remodel 10 to 20 stores and close 10 to 15 underperforming stores in the year.

Fibre2Fashion News Desk (RR)