US' Citi Trends posts net sales growth of 14.5%; raises outlook

The gross margin of the company also rose by 40.3 per cent with 290 bps growth as compared to 37.4 per cent in corresponding period of 2019 while the net income increased $2 million to $9 million in the third quarter of current year compared to $7 million in the third quarter of 2020.

“We are thrilled to report strong third quarter results building on the positive momentum from the first half of the year. I’m especially pleased with our 13 per cent comp sales increase for the quarter on top of a 6 per cent comp sales increase for the same period in 2020. We are in the early innings of our transformation and are confident that our continued discipline and focus on the execution of our strategic priorities enables us to capture additional sales and leverage expenses to sustain our top and bottom line growth.” David Makuen, chief executive officer of the company, said in a press release.

“Looking ahead to fiscal 2022, we are excited to continue our transformation and remain confident in the trajectory of the business. We plan to open approximately 40 new stores next year, coupled with remodeling approximately 40 stores, all reflecting our elevated CTx store experience upgrade. At a high level, we believe we are positioned to deliver low-to-mid single digit total sales growth coupled with at least low double digit EPS growth. We look forward to sharing a more detailed view of our revised long-range Citi Master Plan at the ICR conference in early January.” Makuen concluded.

In the third quarter, the company repurchased approximately 521,000 shares of its common stock at an aggregate cost of $42.8 million.

Based on the quarter’s performance, the company expects an increase in comparable store sales in the high teens in the fourth quarter of 2021 compared to the fourth quarter of 2019. It is raising its full year 2021 total sales outlook to a range of $1 billion to $1.015 billion and raising its EPS guidance to a range of $6.95 to $7.10 compared to its prior range of $6.30 to $6.50.

Fibre2Fashion News Desk (DD)