Savannah-based Citi Trends, a national chain of value-priced urban clothing, accessories and home goods, followed a successful bounce-back first quarter with an even better second quarter, company officials said Wednesday in a conference call with investors.
Total sales in the second quarter ended Aug. 2 increased 5.2 percent to $145 million compared with $137.8 million in the second quarter ended Aug. 3, 2013. Comparable store sales increased 5.3 percent in the quarter, reflecting a 7 percent increase in customer transactions.
Total sales in the first half of fiscal 2014 increased 4.2 percent to $333 million compared with $319.6 million in the first half of fiscal 2013. Comparable store sales increased 4.7 percent in the first half of this year.
Net income for the first half soared to $6.5 million compared with $700,000 in last year’s first half. Earnings per diluted share were 43 cents in the first half of 2014 compared with 5 cents in the first half of 2013.
Sales of home goods and fashion accessories were the company’s top performers in the quarter, with home goods up 28 percent and accessories up 24 percent over the same quarter last year.
“Our balance sheet position remains strong,” said Bruce Smith, Citi Trends chief financial officer.
“Cash, together with short- and long-term investment securities, totaled $102 million at quarter’s end. Inventory remained flat, and we continue to have no debt.”
Citi Trends Chairman and CEO Ed Anderson told analysts he was pleased with the company’s latest results.
“The strong second quarter reflects the progress we are making with the turnaround of Citi Trends,” he said. “After a very good first quarter, the second quarter results were even better.
“The comparable store sales increase of 5.3 percent in quarter two is the best we have seen in more than four years,” he said. “We’ve now had comp store increases in four of the last five quarters.”
Once again, accessories — including footwear — have driven the sales increases, Anderson said.
“A 24 percent increase in accessories, on top of a 17 percent increase in the same quarter last year, represented 30 percent of our total sales in the second quarter,” he said.
The company opened four new stores near the end of the quarter — in Raleigh and Smithfield, N.C., Shreveport, La., and Fresno, Calif. — and has deals completed to open another four in the fall.
In addition, Citi Trends expects to complete 20 minor remodels and expand or relocate another eight stores in 2014.
“We’re pleased to report another solid quarter,” Anderson said. “We believe our strategies are working and will deliver a successful 2014.”
ABOUT CITI TRENDS
Citi Trends (NASDAQ: CTRN) is a value-priced retailer of urban fashion apparel, shoes, accessories and home décor. In addition to corporate offices in Savannah, City Trends operates 506 stores in 29 states and employs approximately 4,500 people.