NEWS - Retail & Shopping Centers

By Lou Phelps, SBJ Staff

Dec 5, 2022 – After years of reporting gains and same store growth, the difficult U.S. economy appears to have caught up with Citi Trends, the urban clothing company headquartered in Savannah. The company is traded under the symbol (NASDAQ: CTRN).

Total sales in the third quarter ended October 29, 2011 increased 2.2% to $143.1 million compared with $140.0 million in the third quarter ended October 30, 2010, achieved by opening new stores; however, comparable store sales decreased 9.3%.

The company reported a net loss of $6.8 million, or $0.46 per diluted share, in the third quarter of 2011, compared with a net loss of $0.4 million, or $0.03 per diluted share, in last year’s third quarter.  The increase in this year’s quarterly loss was primarily a result of the negative comparable store sales and a related need to take clearance markdowns, according to the company’s SEC filings.

In addition, this year’s third quarter was affected by severance costs of $1.2 million, incurred primarily in connection with the elimination of 40 positions in the Company’s corporate offices, distribution centers and store organization, and $0.7 million of non-cash impairment expense related to the property and equipment at nine underperforming stores.  Citi Trends closed its Savannah distribution center during the second quarter, eliminating more than 30 jobs, consolidating from three down to two centers.

The Company opened 26 stores, relocated or expanded 4 others and closed 1 store in the third quarter of 2011, reaching a total store count of 507 at the end of the quarter, predominately in the Southeast and Mid-Atlantic regions.

Total sales in the first three quarters of fiscal 2011 increased 2.7% to $462.5 million compared with $450.5 million in the same period of fiscal 2010.  Comparable store sales decreased 9.1%.