Citi Trends Lifts Outlook as 2Q Sales Climb

Dow Jones
Yesterday
 

Citi Trends raised its full-year outlook on the back of higher second-quarter sales, boosted by more transactions and higher spend per visit, even as the company swung to a loss.

The value retailer of apparel, accessories and homegoods on Tuesday posted a loss of $931,000, compared with a profit of $3.82 million a year earlier. On a per-share basis, the quarterly loss came out to 11 cents.

Net sales climbed to $211.6 million from $190.8 million a year ago.

Comparable-store sales, which account for store openings and closing, rose nearly 11%, driven by increases in average basket size and an uptick in transactions.

Chief Executive Ken Seipel said the recent period marked the company's eighth consecutive quarter of comparable-store sales growth. "We remain focused on consistent execution, strong sales flow-through to profit, and disciplined growth," he added.

Looking ahead, Citi Trends now expects net sales to be up 10% to 12% this year, up from a prior forecast of 9% to 11%. Comparable-store sales growth is now projected to be in the range of 9% to 11%, slightly higher than its previous outlook of 8% to 10%.

 
 

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