Citi Trends Announces Strong Second Quarter 2021 Results
Citi Trends (CTRN) reported strong Q2 2021 results with total sales of $237.3 million, marking a 29.8% increase over Q2 2019. Comparable store sales rose 25.6%, and gross margin improved to 40.8%, up 350 bps. Operating income reached $16.4 million (operating margin 6.9%), while net income was $12.5 million with earnings per share at $1.36. The company authorized a new $30 million share repurchase program and raised its full-year sales outlook to approximately $1 billion, projecting diluted EPS of $6.30 to $6.50.
- Total sales increased 29.8% to $237.3 million compared to Q2 2019.
- Comparable store sales rose 25.6% over Q2 2019.
- Gross margin improved by 350 bps to 40.8%.
- Operating income surged to $16.4 million from $0.2 million in Q2 2019.
- Net income increased to $12.5 million from $0.4 million in Q2 2019.
- Earnings per diluted share reached $1.36, up from $0.03 in Q2 2019.
- Anticipated total sales for FY 2021 now projected between $990 million to $1.01 billion, a 27%-29% increase from FY 2019.
- None.
Total sales were
Comparable store sales increased
Gross margin increased 350 bps to
Operating margin of
Earnings per diluted share of
Authorized a new
Expects to deliver full year 2021 total sales of approximately
Raising full year 2021 guidance for diluted EPS to a range of
Financial Highlights – 13 week second quarter ended
The Company is reporting operating results for Q2 2021 relative to Q2 2019 to provide a more normalized comparison of performance since Q2 2020 included significant favorable one-time expense reductions related to COVID-19 such as furloughs, reduced store hours and closures, abated rents and other COVID-19 cost credits.
-
Total sales increased
29.8% to$237.3 million $182.8 million -
Comparable store sales increased
25.6% over Q2 2019 -
Gross margin increased 350 bps to
40.8% compared to Q2 2019 gross margin of37.3% - As a percent of sales, selling, general and administrative expenses improved 270 bps compared to Q2 2019
-
Operating income was
$16.4 million $0.2 million -
Operating margin was
6.9% compared to0.1% in Q2 2019 -
Net income was
$12.5 million $0.4 million -
Earnings per diluted share was
$1.36 $0.03 -
Quarter-end inventory decreased
14.3% compared to the end of Q2 2019 - The Company opened 5 new stores during Q2 2021
Financial Highlights – 26 week first half ended
In the first half of 2021, total sales were
Chief Executive Officer Comments
Makuen continued, “Our top line and bottom line results were once again broad-based with particular strength in our ‘CITIs’ for Men’s, Ladies’ and Beauty/Accessories. Most importantly, we lapped our second quarter 2020 comparable store sales of +
“Based on our strong first half performance and confidence in our ability to capitalize on the opportunities that lie ahead, including an amazing holiday assortment to drive fourth quarter sales and our plan to open 20+ stores over the remainder of the year, we have increased our full year total sales and EPS outlook. Our revised outlook now calls for midpoint total sales of
Capital Return Program Update
In the second quarter, the Company repurchased approximately 215,000 shares of its common stock at an aggregate cost of
At the end of the second quarter,
Guidance
Following the Company’s strong performance during the first half of the fiscal year, the Company is raising its full year 2021 guidance and expects to generate total sales of
Investor Conference Call and Webcast
The live broadcast of
During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends that have occurred after quarter-end. 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
Forward-Looking Statements
All statements other than historical facts contained in this news release, including statements regarding the Company’s future financial results and position, business policy and plans, objectives and expectations of management for future operations and capital allocation expectations, are forward-looking statements that are subject to material risks and uncertainties. The words "believe," "may," "could," "plans," "estimate," "continue," "anticipate," "intend," "expect," “upcoming,” “trend” and similar expressions, as they relate to the Company, are intended to identify forward-looking statements, although not all forward-looking statements contain such language. Statements with respect to earnings, sales or new store guidance are forward-looking statements. Investors are cautioned that any such forward-looking statements are subject to the finalization of the Company’s quarter-end financial and accounting procedures, are not guarantees of future performance or results and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Actual results or developments may differ materially from those included in the forward-looking statements as a result of various factors which are discussed in our Annual Reports and Quarterly Reports on Forms 10-K and 10-Q, respectively, and any amendments thereto, filed with the
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | |||||||||||||
| (in thousands, except per share data) | |||||||||||||
| Thirteen Weeks Ended | Thirteen Weeks Ended | Thirteen Weeks Ended | |||||||||||
| (unaudited) | (unaudited) | (unaudited) | |||||||||||
| Net sales | $ |
237,281 |
|
$ |
216,151 |
|
$ |
182,830 |
|
||||
| Cost of sales (exclusive of depreciation shown separately below) |
|
(140,542 |
) |
|
(127,147 |
) |
|
(114,612 |
) |
||||
| Selling, general and administrative expenses |
|
(75,383 |
) |
|
(57,623 |
) |
|
(62,989 |
) |
||||
| Depreciation |
|
(4,994 |
) |
|
(4,933 |
) |
|
(4,607 |
) |
||||
| Income from operations |
|
16,362 |
|
|
26,448 |
|
|
150 |
|
||||
| Interest income |
|
2 |
|
|
14 |
|
|
414 |
|
||||
| Interest expense |
|
(77 |
) |
|
(377 |
) |
|
(40 |
) |
||||
| Income (loss) before income taxes |
|
16,287 |
|
|
26,085 |
|
|
524 |
|
||||
| Income tax (expense) benefit |
|
(3,797 |
) |
|
(6,218 |
) |
|
(147 |
) |
||||
| Net income (loss) | $ |
12,490 |
|
$ |
19,867 |
|
$ |
377 |
|
||||
| Basic net income (loss) per common share | $ |
1.37 |
|
$ |
1.90 |
|
$ |
0.03 |
|
||||
| Diluted net income (loss) per common share | $ |
1.36 |
|
$ |
1.90 |
|
$ |
0.03 |
|
||||
| Weighted average number of shares outstanding | |||||||||||||
| Basic |
|
9,088 |
|
|
10,451 |
|
|
11,882 |
|
||||
| Diluted |
|
9,178 |
|
|
10,458 |
|
|
11,882 |
|
||||
| Twenty-Six Weeks Ended | Twenty-Six Weeks Ended | Twenty-Six Weeks Ended | |||||||||||
| (unaudited) | (unaudited) | (unaudited) | |||||||||||
| Net sales | $ |
522,662 |
|
$ |
332,275 |
|
$ |
387,862 |
|
||||
| Cost of sales (exclusive of depreciation shown separately below) |
|
(304,333 |
) |
|
(211,517 |
) |
|
(242,850 |
) |
||||
| Selling, general and administrative expenses |
|
(153,275 |
) |
|
(111,699 |
) |
|
(126,436 |
) |
||||
| Depreciation |
|
(9,691 |
) |
|
(9,879 |
) |
|
(9,221 |
) |
||||
| Asset impairment |
|
- |
|
|
(286 |
) |
|
(472 |
) |
||||
| Income from operations |
|
55,363 |
|
|
(1,106 |
) |
|
8,883 |
|
||||
| Interest income |
|
6 |
|
|
231 |
|
|
793 |
|
||||
| Interest expense |
|
(124 |
) |
|
(540 |
) |
|
(78 |
) |
||||
| Income before income taxes |
|
55,245 |
|
|
(1,415 |
) |
|
9,598 |
|
||||
| Income tax expense |
|
(11,858 |
) |
|
390 |
|
|
(1,433 |
) |
||||
| Net income loss | $ |
43,387 |
|
$ |
(1,025 |
) |
$ |
8,165 |
|
||||
| Basic net income per common share | $ |
4.68 |
|
$ |
(0.10 |
) |
$ |
0.68 |
|
||||
| Diluted net income per common share | $ |
4.63 |
|
$ |
(0.10 |
) |
$ |
0.68 |
|
||||
| Weighted average number of shares outstanding | |||||||||||||
| Basic |
|
9,269 |
|
|
10,447 |
|
|
11,929 |
|
||||
| Diluted |
|
9,374 |
|
|
10,447 |
|
|
11,944 |
|
||||
| CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | |||||||
| (in thousands) | |||||||
| (unaudited) | (unaudited) | ||||||
| Assets: | |||||||
| Cash and cash equivalents | $ |
76,751 |
$ |
146,741 |
|||
| Short-term investment securities |
|
24,603 |
|
5 |
|||
| Inventory |
|
113,186 |
|
94,545 |
|||
| Prepaid and other current assets |
|
19,144 |
|
17,902 |
|||
| Property and equipment, net |
|
66,524 |
|
61,923 |
|||
| Operating lease right of use assets |
|
190,503 |
|
171,711 |
|||
| Other noncurrent assets |
|
5,500 |
|
7,997 |
|||
| Total assets | $ |
496,211 |
$ |
500,824 |
|||
| Liabilities and Stockholders' Equity: | |||||||
| Accounts payable | $ |
99,177 |
$ |
77,679 |
|||
| Accrued liabilities |
|
43,799 |
|
28,938 |
|||
| Current operating lease liabilities |
|
47,145 |
|
46,777 |
|||
| Income tax payable |
|
3,642 |
|
- |
|||
| Other current liabilities |
|
1,133 |
|
724 |
|||
| Revolving credit facility |
|
- |
|
41,600 |
|||
| Noncurrent operating lease liabilities |
|
156,592 |
|
139,877 |
|||
| Other noncurrent liabilities |
|
2,349 |
|
1,772 |
|||
| Total liabilities |
|
353,837 |
|
337,367 |
|||
| Total stockholders' equity |
|
142,374 |
|
163,457 |
|||
| Total liabilities and stockholders' equity | $ |
496,211 |
$ |
500,824 |
|||
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investorweb@cititrends.com
(646) 277-1235
Source:
FAQ
What were Citi Trends' total sales in Q2 2021?
How much did comparable store sales increase for Citi Trends in Q2 2021?
What is the earnings per diluted share for Citi Trends in Q2 2021?
What is Citi Trends' new share repurchase program?
What is the full-year sales guidance for Citi Trends in 2021?
