Citi Trends Announces Strong Third Quarter 2021 Results
Citi Trends (CTRN) reported a strong third quarter for fiscal 2021, with total sales of $228 million, a 24.5% increase compared to Q3 2019. Comparable store sales rose 19.7%, and gross margin improved to 40.3%, up 290 bps. Earnings per diluted share reached $1.03, contrasting with a loss of ($0.09) in Q3 2019. The company raised its full-year earnings guidance to $6.95 to $7.10. Additionally, a new $30 million share repurchase program was approved. The outlook for Q4 anticipates high teens growth in comparable store sales compared to Q4 2019.
- Total sales increased by 24.5% to $228 million vs. Q3 2019.
- Comparable store sales grew by 19.7% compared to Q3 2019.
- Gross margin rose to 40.3%, an increase of 290 basis points vs. Q3 2019.
- Earnings per diluted share of $1.03 compared to a loss of ($0.09) in Q3 2019.
- New share repurchase program of $30 million approved.
- Gross margin decreased 1.5% from 41.8% in Q3 2020.
- Total inventory increased by 10.9% vs. Q3 2020.
Total sales of
Comparable store sales increased
Gross margin of
Operating margin of
Earnings per diluted share of
Raising full year 2021 guidance for diluted EPS to a range of
Board approves new share repurchase program of
Financial Highlights – 13 week third quarter ended
The Company is reporting operating results for the third quarter of 2021 relative to the third quarter of both 2020 and 2019 due to the uniquely challenging operating environment in the third quarter of 2020 resulting from the COVID-19 pandemic.
Third Quarter |
Third Quarter |
|||||||||||||
| (in thousands, except per share data) | FY21 |
FY20 |
FY19 |
FY21 vs. FY19 |
||||||||||
| Net sales | $ |
227,959 |
$ |
199,100 |
$ |
183,050 |
+ |
|||||||
| Comparable store sales | + |
+ |
+ |
+ |
||||||||||
| Gross margin |
|
|
|
|
|
|
+290 bps | |||||||
| Operating income (loss) | $ |
11,577 |
$ |
9,340 |
$ |
(1,588) |
||||||||
| Operating margin |
|
|
|
|
|
- |
+600 bps | |||||||
| Net income (loss) | $ |
9,014 |
$ |
6,965 |
$ |
(1,084) |
||||||||
| Diluted earnings (loss) per share | $ |
1.03 |
$ |
0.67 |
$ |
(0.09) |
||||||||
| Open stores - end of period |
|
600 |
|
585 |
|
566 |
+ |
|||||||
-
Total sales increased
14.5% vs. Q3 2020, on top of an8.8% increase in Q3 2020 vs. 2019 -
Comparable store sales increased
13.1% vs. Q3 2020, on top of a6.3% increase in Q3 2020 vs. 2019; represents the ninth consecutive quarter of positive open-only comparable store sales -
Gross margin increased 290 bps to
40.3% compared to37.4% in Q3 2019 -
Operating margin was
5.1% compared to (0.9% ) in Q3 2019 -
Earnings per diluted share was
$1.03 $0.09 -
Quarter-end total inventory increased
10.9% vs. Q3 2020, on top of a15.5% decrease in Q3 2020 vs. Q3 2019 - During Q3 2021, the Company opened 11 new stores and remodeled 3 stores that were damaged by Hurricane Ida; total store count of 600 stores at the end of Q3 2021 with plans to end the fiscal year with approximately 611 stores
Financial Highlights – 39 weeks ended
The Company is reporting operating results for the nine months ended
Chief Executive Officer Comments
Makuen continued, “Our holiday campaign of Give. Get. Gather. is off to a strong start, and we have adeptly managed supply chain headwinds to offer a deep assortment of amazing gifts and stocking stuffers across our six merchandise categories, or Citis, at values that don’t break the bank. We expect to close the year strong and are raising our full year guidance for both sales and EPS. I want to thank our loyal
Makuen concluded, “Looking ahead to fiscal 2022, we are excited to continue our transformation and remain confident in the trajectory of the business. We plan to open approximately 40 new stores next year, coupled with remodeling approximately 40 stores, all reflecting our elevated CTx store experience upgrade. At a high level, we believe we are positioned to deliver low-to-mid single digit total sales growth coupled with at least low double digit EPS growth. We look forward to sharing a more detailed view of our revised long-range Citi Master Plan at the ICR conference in early January.”
Capital Return Program Update
In the third quarter, the Company repurchased approximately 521,000 shares of its common stock at an aggregate cost of
At the end of the third quarter,
Guidance
The Company expects an increase in comparable store sales in the high teens in the fourth quarter of 2021 compared to the fourth quarter of 2019. The Company is raising its full year 2021 total sales outlook to a range 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 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 | $ |
227,959 |
|
$ |
199,100 |
|
$ |
183,050 |
|
|||
| Cost of sales (exclusive of depreciation shown separately below) |
|
(136,071 |
) |
|
(115,827 |
) |
|
(114,579 |
) |
|||
| Selling, general and administrative expenses |
|
(74,784 |
) |
|
(69,230 |
) |
|
(65,539 |
) |
|||
| Depreciation |
|
(5,527 |
) |
|
(4,703 |
) |
|
(4,520 |
) |
|||
| Income from operations |
|
11,577 |
|
|
9,340 |
|
|
(1,588 |
) |
|||
| Interest income |
|
18 |
|
|
4 |
|
|
421 |
|
|||
| Interest expense |
|
(76 |
) |
|
(193 |
) |
|
(39 |
) |
|||
| Income (loss) before income taxes |
|
11,519 |
|
|
9,151 |
|
|
(1,206 |
) |
|||
| Income tax (expense) benefit |
|
(2,505 |
) |
|
(2,186 |
) |
|
122 |
|
|||
| Net income (loss) | $ |
9,014 |
|
$ |
6,965 |
|
$ |
(1,084 |
) |
|||
| Basic net income (loss) per common share | $ |
1.04 |
|
$ |
0.67 |
|
$ |
(0.09 |
) |
|||
| Diluted net income (loss) per common share | $ |
1.03 |
|
$ |
0.67 |
|
$ |
(0.09 |
) |
|||
| Weighted average number of shares outstanding | ||||||||||||
| Basic |
|
8,706 |
|
|
10,365 |
|
|
11,636 |
|
|||
| Diluted |
|
8,787 |
|
|
10,401 |
|
|
11,636 |
|
|||
| Thirty-Nine Weeks Ended | Thirty-Nine Weeks Ended | Thirty-Nine Weeks Ended | ||||||||||
| (unaudited) | (unaudited) | (unaudited) | ||||||||||
| Net sales | $ |
750,621 |
|
$ |
531,375 |
|
$ |
570,912 |
|
|||
| Cost of sales (exclusive of depreciation shown separately below) |
|
(440,404 |
) |
|
(327,344 |
) |
|
(357,429 |
) |
|||
| Selling, general and administrative expenses |
|
(228,059 |
) |
|
(180,929 |
) |
|
(191,975 |
) |
|||
| Depreciation |
|
(15,218 |
) |
|
(14,582 |
) |
|
(13,741 |
) |
|||
| Asset impairment |
|
- |
|
|
(286 |
) |
|
(472 |
) |
|||
| Income from operations |
|
66,940 |
|
|
8,234 |
|
|
7,295 |
|
|||
| Interest income |
|
24 |
|
|
235 |
|
|
1,214 |
|
|||
| Interest expense |
|
(200 |
) |
|
(733 |
) |
|
(117 |
) |
|||
| Income before income taxes |
|
66,764 |
|
|
7,736 |
|
|
8,392 |
|
|||
| Income tax expense |
|
(14,363 |
) |
|
(1,796 |
) |
|
(1,311 |
) |
|||
| Net income loss | $ |
52,401 |
|
$ |
5,940 |
|
$ |
7,081 |
|
|||
| Basic net income per common share | $ |
5.77 |
|
$ |
0.57 |
|
$ |
0.60 |
|
|||
| Diluted net income per common share | $ |
5.71 |
|
$ |
0.57 |
|
$ |
0.60 |
|
|||
| Weighted average number of shares outstanding | ||||||||||||
| Basic |
|
9,081 |
|
|
10,420 |
|
|
11,831 |
|
|||
| Diluted |
|
9,179 |
|
|
10,444 |
|
|
11,842 |
|
|||
| CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | ||||||
| (in thousands) | ||||||
| (unaudited) | (unaudited) | |||||
| Assets: | ||||||
| Cash and cash equivalents | $ |
12,023 |
$ |
96,762 |
||
| Short-term investment securities |
|
35,462 |
|
- |
||
| Inventory |
|
126,899 |
|
114,405 |
||
| Prepaid and other current assets |
|
19,392 |
|
18,574 |
||
| Property and equipment, net |
|
71,945 |
|
63,564 |
||
| Operating lease right of use assets |
|
196,529 |
|
182,338 |
||
| Other noncurrent assets |
|
5,319 |
|
6,278 |
||
| Total assets | $ |
467,569 |
$ |
481,921 |
||
| Liabilities and Stockholders' Equity: | ||||||
| Accounts payable | $ |
102,599 |
$ |
87,757 |
||
| Accrued liabilities |
|
41,306 |
|
32,496 |
||
| Current operating lease liabilities |
|
47,141 |
|
47,976 |
||
| Other current liabilities |
|
1,870 |
|
1,737 |
||
| Noncurrent operating lease liabilities |
|
163,390 |
|
148,766 |
||
| Other noncurrent liabilities |
|
2,003 |
|
2,256 |
||
| Total liabilities |
|
358,309 |
|
320,988 |
||
| Total stockholders' equity |
|
109,260 |
|
160,933 |
||
| Total liabilities and stockholders' equity | $ |
467,569 |
$ |
481,921 |
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20211130005377/en/
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FAQ
What were Citi Trends' (CTRN) total sales for Q3 2021?
How much did comparable store sales increase for CTRN in Q3 2021?
What was the earnings per diluted share for CTRN in Q3 2021?
What is the new share repurchase program amount announced by CTRN?
What is Citi Trends' (CTRN) updated EPS guidance for fiscal 2021?
