US’ Citi Trends reports total sales of $192.3 million in Q3 FY22

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American retail store chain Citi Trends has reported total sales of $192.3 million in the third quarter (Q3) of financial year 2022 (FY22), ended October 29, down 15.6 per cent compared to Q3 FY21. The company’s comparable sales in the third quarter of FY22 decreased 18.3 per cent compared to the third quarter of financial year 2021.

Citi Trends’ comparable store transactions versus prior year sequentially improved 760 bps from Q2 FY22 to Q3 FY22, an improvement of 1,270 bps from Q1 FY22.

American retail store chain Citi Trends has reported total sales of $192.3 million in the third quarter (Q3) of financial year 2022 (FY22), ended October 29, down 15.6 per cent compared to Q3 FY21. The company’s comparable sales in the third quarter of financial year 2022 decreased 18.3 per cent compared to the third quarter of financial year 2021.

Citi Trends’ operating income was $31.6 million in Q3 FY22, compared to $11.6 million in Q3 FY21. Net income in the third quarter was $24.6 million, compared to $9.01 million in Q3 FY21.

The company’s gross margin in Q3 FY22 was 39.8 per cent versus 40.3 per cent in Q3 FY21. Selling, general and administrative expenses in the third quarter of fiscal 2022 declined 7.6 per cent compared to Q3 FY21.

The company’s adjusted EBITDA in Q3 FY22 was $7.5 million, compared to $17.1 million in Q3 FY21. Furthermore, Citi Trends’ diluted EPS in Q3 FY22 was $3.02, compared to $1.03 in the corresponding period of the previous fiscal.

For the first three quarters of FY22, the company’s total sales were $585.6 million, down 22 per cent compared to the first three quarters of FY21, while the gross margin was 39 per cent versus 41.3 per cent in the corresponding period of FY21.

Citi Trends’ operating income in the first three quarters of 2022 was $67.9 million compared to $66.9 million in FY21, while the net income was $52.3 million, compared to $52.4 million in FY21. The company’s adjusted EBITDA for the first three quarters of FY22 was $19.6 million, compared to $82.2 million in the same period of previous fiscal.

The company reiterated its guidance for the second half of 2022. It expects low single digit increase in second half total sales compared to first half total sales, while the gross margin is expected to remain in the high 30s to low 40s range for the second half. Citi Trends expects significantly less selling, general and administrative expense deleverage in the second half versus the same period in the prior year. Second half’s operating income is estimated to be approximately in line with the second half of 2019. Furthermore, the company expects year-end cash balance of approximately $85 million to $100 million.

Fibre2Fashion News Desk (DP)




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