Value-priced retailer of urban fashion apparel and
Citi Trends Inc
), marked an improvement in its third quarter 2012 results as the
company reported loss per share of 25 cents, compared with a loss
per share of 41 cents reported in the year-ago quarter (excluding
the impact of severance expenses).
Moreover, the company's quarterly loss compared favorably with
the Zacks Consensus Estimate of a loss of 41 cents per share.
Turning to Numbers
During the quarter, Citi Trends recorded a 4.1% rise in net
sales to $149 million, compared to $143.1 million in the
comparable prior-year quarter. Moreover, total revenue came ahead
of the Zacks Consensus Estimate of $142 million. Comparable store
sales inched up 0.5% during the quarter.
Citi Trends' gross profit augmented 6.3% to $51.2 million from
$48.2 million in the year-ago quarter, whereas gross margin
expanded 70 basis points to 34.4%.
Selling, general and administrative expenses in the quarter
decreased 3.6% year over year to $51.1 million, while
depreciation and amortization expenses waned 7.5% to $6 million.
The company's loss from operations came in at $6.6 million
compared with $12.1 million in the year-ago period.
Citi Trends had no debt on its balance sheet at the end of the
quarter. Cash and cash equivalents were $36.2 million compared
with $33.2 million at the end of the third quarter of fiscal
2011. Shareholders' equity totaled $196 million compared with
$202.5 million in the prior-year period.
During the third quarter, Citi Trends slightly paced up its
stores with the opening of one new store and relocation of two.
This brought the company's total store count to 513 at the end of
the quarter. The company operates across 29 states in the
Southeast, Mid-Atlantic and Midwest regions as well as in the
states of Texas and California.
Citi Trends operates in a highly fragmented specialty retail
sector and faces intense competition from larger off-price rivals
The TJX Companies Inc.
Ross Stores Inc.
Citi Trends currently has a short-term Zacks #3 Rank, which
translates into a 'Hold' rating. Moreover, we retain our
long-term 'Neutral' recommendation on the shares.
CITI TRENDS INC (CTRN): Free Stock Analysis
ROSS STORES (ROST): Free Stock Analysis
TJX COS INC NEW (TJX): Free Stock Analysis
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