Citi Trends Stock Rallies Ahead of Q3 Results
By Stocktwits Inc | First Published Dec 3, 2024, 4:54 AM ISTLast month, Citi Trends announced its board named Kenneth (Ken) Seipel as CEO from Interim CEO and also appointed Peter Sachse as chairman.
Shares of Citi Trends Inc. ($CTRN ) were up 4% ahead of its third-quarter results, with retail sentiment remaining cautious to bullish with many of its competitors.
Wall Street consensus estimates expect the company to post earnings per share of -$0.66 on revenues of $179.1 million. The company has missed estimates thrice out of the last four quarters. Its stock price, meanwhile, has rallied over the past month, reaching a month-high on Monday.
In the second quarter, it posted a wider net loss of $18.4 million ($16.2 million adjusted), compared to a net loss of $5.0 million ($4.9 million adjusted) in the same quarter in 2023. Its total sales increased by 1.7%, but comparable store sales declined by 1.7%. That quarter, it also incurred $13.4 million in one-time expenses, including $9.4 million it spent clearing aged inventory.
Last month, Citi Trends’ board named Kenneth (Ken) Seipel as CEO from Interim CEO and also appointed Peter Sachse, then executive chairman, as chairman.
Announcing its preliminary Q3 2024 results also in November, it said last month its Q3 sales results are expected to be above the company’s previous outlook. Gross margin for Q3 2024 is expected to be 39.8%, an increase of 160 basis points compared to Q3 2023. Q3 2024 adjusted Earnings before Interest, Tax, Depreciation, and Amortization (EBITDA) is expected to be a loss of $3.3 million, which includes strategic costs for in-depth customer and market research and costs to improve operational processes.
Citi Trends is a retailer of urban fashion apparel, accessories, and home trends. Its brands include 'Citi Steps' and 'Red Ape,’ and it operates 592 stores across 33 states.
Citi Trends stock is down 26% year-to-date.
For updates and corrections email newsroom[at]stocktwits[dot]com.<
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