Microvast Holdings announces departure of chief financial officer
SAVANNAH, Ga. - Citi Trends, Inc. (NASDAQ: CTRN) experienced an 8.7% decline in share price following the announcement of its first-quarter results, which revealed a wider loss than anticipated and revenue shortfall compared to analyst expectations.
The specialty value retailer reported an adjusted loss per share of -$0.32 for the quarter, falling short of the consensus estimate by $0.09. Revenue for the quarter was $186.3 million, also missing the analyst projection of $187.38 million.
Despite the shortfall, the company achieved a 3.7% increase in total sales compared to the first quarter of the previous year, with comparable store sales growing by 3.1%.
Gross margin improved to 38.7%, up from 36.7% as reported and 37.0% as adjusted in the first quarter of 2023. Interim CEO Ken Seipel attributed the performance improvements to targeted inventory rebuilds and the company's ability to deliver in-store experiences that resonate with their customers.
Citi Trends' balance sheet remains robust, with $58.2 million in cash and no debt at the end of the quarter. The company also continued its store optimization strategy, closing 3 stores and remodeling 20, with an additional 15 remodels since the end of the first quarter.
Looking ahead, Citi Trends reiterated its full-year 2024 EBITDA outlook, expecting it to be in the range of $4 million to $10 million. However, the company slightly lowered its forecast for comparable store sales growth to low to mid-single digits, which is below the previous outlook.
Gross margin is anticipated to expand by approximately 75 to 100 basis points, aligning with prior expectations, and SG&A expenses are projected to increase by about 1.5% to 2.5%, a slight improvement from earlier predictions. The company plans to open up to 5 new stores, remodel around 40 stores, and close 10 to 15 underperforming stores, aiming to end the fiscal year with approximately 595 stores.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.