Citi Trends reports Q3 EPS (86c), consensus (75c)

Reports Q3 revenue $179.1M, consensus $178.48M. CEO Ken Seipel commented, “Our Q3 performance of mid-single digit comparable store sales growth and a 160 basis point improvement in gross margin are early indicators that our customers are responding to our strategy adjustments. Comparable store sales increases grew sequentially each month in the quarter driven by increased transaction counts, with continuing momentum Q4 to-date…During the quarter, we incurred strategic costs, which I consider as one-time in nature, to drive long-term growth including an extensive customer and market research study which will help us refine our product assortment and serve as a basis for the company’s long range plan, costs to research and accelerate improved shrink results and the development of best practices to improve operational efficiency across the organization. These work streams and their related expenses are expected to be completed in Q4 and are instrumental in our goal to significantly increase shareholder value.”