10-Q - Citi Trends Inc (0001318484) (Filer)

Wed, Sep 11, 8:40 PM (23 days ago)

Citi Trends, Inc. reported a net loss of $18.4 million for Q2 2024, a significant increase from a $5.0 million loss in Q2 2023. This was driven by a 1.7% rise in net sales to $176.6 million, which was influenced by a calendar shift from the previous year. However, comparable store sales decreased by 1.7%, and net store activity contributed a $1.9 million decline in sales. Cost of sales rose 13.4% to $121.6 million, with the cost as a percentage of sales increasing to 68.9% due to markdowns and inventory shrinkage. SG&A expenses increased 6.1% to $73.8 million, impacted by CEO transition costs and rising corporate expenses, leading to an overall SG&A percentage of 41.8%. The company’s cash position decreased to $59.3 million from $65.8 million year-over-year, with inventory remaining stable at $135.0 million. The revolving credit facility remains untapped, providing $75 million in liquidity. Looking ahead, Citi Trends faces uncertainties from economic pressures, impacting consumer spending and operational costs. The company plans to continue monitoring these conditions and adjust its strategies accordingly.