Citi Trends, Inc (NASDAQ:CTRN) stock is trading higher premarket Tuesday after the company reported third-quarter results.

The company reported quarterly sales of $179.1 million, which decreased by 0.3% year-on-year, beating the Wall Street consensus of $178.5 million.

Gross margin stood at 39.8%, compared to 38.2% in the same period last year, due to markup expansion and a 40 basis point improvement in shrink results from the impact of mitigation efforts.

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Citi Trends reported an adjusted loss per share of $(0.78), compared to the consensus loss of $(0.75).

The company closed four stores, ending the quarter with 593 locations.

Citi Trends had cash of $38.9 million at quarter-end, with no debt and no borrowings under a $75 million credit facility.

The company did not repurchase any shares in the third quarter. As of the end of the quarter, $50 million remained available under the share repurchase program. It expects to resume share repurchase activity in the fourth quarter of fiscal 2024.

On Nov. 18, Citi Trends named Kenneth (Ken) Seipel as the permanent CEO, who had been serving as interim chief since June.

Outlook: Citi Trends expects low to mid-single-digit comparable store sales in the fourth quarter, with total sales down mid-single digits.

The company anticipates a flat to down low-single digits (prior mid-single-digit decline) in the second half of fiscal 2024 sales due to the 53rd week of last year and store closures.

For the second half of 2024, the company expects comparable store sales to be low to mid-single digits (prior flat or increase by low single digits) compared to the second half of fiscal 2023.

Citi Trends stock has fallen over 26% year-to-date as the company struggled to clear its inventory, which has led to store closures.

Price Action: CTRN stock is up 7.66% at $22.35 premarket at the last check Tuesday.

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Image created using artificial intelligence via Midjourney.