Citi Trends ( (CTRN) ) has released its Q3 earnings. Here is a breakdown of the information Citi Trends presented to its investors.
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Citi Trends, Inc., a specialty value retailer, primarily caters to African American and multicultural families in the United States, offering apparel, accessories, and home trends at affordable prices through its extensive network of nearly 600 stores.
Citi Trends has reported its third-quarter fiscal 2024 results, highlighting a notable increase in comparable store sales and an improved gross margin. This performance is attributed to strategic adjustments that have enhanced customer engagement and operational efficiency.
The company’s financial highlights for the third quarter include total sales of $179.1 million, a 5.7% increase in comparable store sales, and a gross margin expansion to 39.8%. Despite these gains, Citi Trends reported a net loss of $7.2 million, partly due to strategic one-time costs aimed at long-term growth. The retailer closed four stores, ending the quarter with 593 locations, and maintains a strong liquidity position with $114 million in cash and no debt.
Citi Trends is optimistic about its future prospects, raising its outlook for the second half of fiscal 2024. The company anticipates continued growth in comparable store sales and plans to resume its share repurchase program in the fourth quarter. With an ongoing focus on strategic improvements, Citi Trends aims to enhance shareholder value and achieve sustained growth.
