Tuesday, November 27, 2007

Citi Trends Announces Third Quarter 2007 Results

Citi Trends, Inc. (NASDAQ:CTRN) today reported results for the third quarter ended November 3, 2007.

Financial Highlights - 13 weeks ended November 3, 2007


Total net sales increased 14.2% to $99.5 million compared with $87.1 million in the 13-week period ended October 28, 2006. Comparable store sales increased 1.9% on a comparable store, comparable weeks basis. Each quarter of fiscal 2007 starts one week later than the same quarter of 2006, due to the Company's 2006 fiscal year having 53 weeks versus the normal 52 weeks. This timing shift can have a significant impact on quarterly sales comparisons. The measurement of sales in comparable stores for comparable weeks above is based on sales during the 13 weeks ended November 3, 2007 in relation to the 13 weeks ended November 4, 2006. On a fiscal quarter basis, comparing the 13 weeks ended November 3, 2007 with the 13 weeks ended October 28, 2006, comparable store sales decreased 2.7%.

As a result of the negative comparable store sales on a fiscal basis and a related increase in clearance markdowns, the Company had a net loss of $513,000 in the third quarter of 2007, compared with net income of $2,809,000 in the prior-year quarter. Net loss per diluted share was $0.04, compared with net income per diluted share of $0.20 in last year's third quarter.

The Company opened six stores in the third quarter of 2007, reaching a total store count of 306 at the end of the quarter. For the remainder of the fiscal year, the Company plans to open an additional 13 stores bringing the end of year store count to 319.

Financial Highlights - 39 weeks ended November 3, 2007


Total net sales increased 18.7% to $302.9 million compared with $255.1 million in the 39-week period ended October 28, 2006. Comparable store sales increased 1.9% on a comparable store, comparable weeks basis and 0.7% on a fiscal basis. Net income decreased to $5,836,000 compared with $10,979,000 in the first 39 weeks of 2006. Net income per diluted share decreased to $0.41, including $0.04 of expenses related to a secondary stock offering, compared with $0.78 in the prior year period.

Fiscal 2007 Outlook


The Company is lowering its estimate of 2007 earnings to a range of $0.91 to $0.96 per diluted share. This guidance, which includes the secondary stock offering expenses of $0.04, is based upon an anticipated 2007 comparable store sales increase of approximately 1% to 2% on a comparable weeks basis and a comparable store sales decrease of approximately 1% to 2% on a fiscal basis. For the year, the Company expects to increase selling square footage by at least 20%, consistent with the Company's previously issued guidance.

The Company reminds investors of the complexity of accurately assessing future results given the difficulty in predicting fashion trends, consumer preferences and general economic conditions and the impact of other business variables. See "Forward-Looking Statements" below for more information regarding these uncertainties.

Investor Conference Call and Webcast

Citi Trends will host a conference call on November 26, 2007 at 5:00 p.m. ET. The number to call for the live interactive teleconference is (913) 981-4911. A replay of the conference call will be available until December 4, 2007, by dialing (719) 457-0820 and entering the passcode, 2886491. The live broadcast of Citi Trends' quarterly conference call will be available online at the Company's website, http://www.cititrends.com/, as well as http://ir.cititrends.com/medialist.cfm on November 26, 2007, beginning at 5:00 p.m. ET. The online replay will follow shortly after the call and continue through December 4, 2007.

During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends. The Company's responses to questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been disclosed previously.

About Citi Trends


Citi Trends, Inc. is a value-priced retailer of urban fashion apparel and accessories for the entire family. The Company currently operates 311 stores located in 19 states in the Southeast, Mid-Atlantic and Midwest regions and the state of Texas. Citi Trends' website address is http://www.cititrends.com/. CTRN-E

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