Citi Trends lowers FY guidance, misses Q2 earnings by a penny
Shares of Citi Trends, Inc. (Nasdaq: CTRN) are trending downwards in after-hours trading this evening after the fashion retailer cut its earnings outlook for the year below the Street’s consensus and reported that second-quarter earnings fell from year-ago levels to miss estimates by a penny.
The Savannah, Ga.-based company is lowering its estimate for 2007 earnings to a range of $1.40 to $1.44 per share from an originally forecasted range of $1.73 to $1.77 a share. The new guidance also falls below the consensus of seven analysts polled by Thomson Financial of earnings of $1.51 per share.
Citi Trends’ management attributes the downwardly revised guidance to comparable store sales increase of 3% to 4% on a comparable week basis and flat on a fiscal basis.
For the second quarter ended August 4, the company reported net income decreased to $0.62 million, or $0.04 a share, and a penny below the $0.05 seven analysts polled by Thomson Financial were expecting. For the second quarter last year, Citi Trends recorded net income of $1.3 million, or $0.09 per share.
Total net sales increased 26.9% to $96.8 million, right in line with the average of five analysts surveyed by Thomson Financial. The current quarter’s revenues compare with $76.3 million in the second quarter of 2006.
Comparable store sales increased 3.4% on a comparable store, comparable week basis.
Shares of Citi Trends fell $1.84, or 7.72%, to $22.00 in after-hours trading.
