Market Overview

Citi Trends Announces 2018 Holiday Sales Results


Citi Trends, Inc. (NASDAQ:CTRN) today reported unaudited sales for the
first two months of the fourth quarter of fiscal 2018, in advance of its
investor presentation at the ICR Conference on January 15, 2019.

Holiday Sales – November and December 2018

Total sales in the first two months of the fourth quarter of 2018
decreased 1.9% to $161.9 million compared with $165.1 million in the
same period of 2017. Comparing the nine weeks ended January 5, 2019 with
the nine weeks ended January 6, 2018, comparable store sales decreased
0.7% during the two-month period, following a 4.8% increase in last
year's fiscal November/December timeframe.

Total sales in the first 11 months of 2018 increased 3.1% to $730.2
million compared with $708.2 million in the same period of 2017.
Comparable store sales increased 1.4% in the first 11 months of 2018,
comparing the 48 weeks ended January 5, 2019 with the 48 weeks ended
January 6, 2018.

Bruce Smith, President and Chief Executive Officer, commented,
"Comparable store sales are up 1.4% for the 11 months year-to-date;
however, similar in many respects to what we saw in the third quarter,
fashion misses in November and December caused comparable store sales to
decrease 0.7%. Importantly, we are on track to enter the spring season
in a clean inventory position."

Based on the November/December sales results and expectations for the
remainder of the fourth quarter of fiscal 2018, the Company has revised
its diluted earnings per share guidance downward and now expects it to
be in a range of $0.54 to $0.58 which, at its midpoint, would reflect a
47% increase from the $0.38 earned in the fourth quarter of 2017. Full
year fiscal 2018 guidance is in a range of $1.60 to $1.64 which, at its
midpoint, represents a 57% increase from the $1.03 earned in the full
year fiscal 2017.

Capital Return Program

As announced on November 30, 2018, the Company's Board of Directors
authorized another $25 million share repurchase program. Since that
announcement, the Company has repurchased shares at a total cost of
approximately $12 million, and since the beginning of 2018, the Company
has returned approximately $41 million to its shareholders in the form
of share repurchases and dividends.

Long-Term Strategic Planning

In connection with the Board of Directors' ongoing review and update of
the Company's long-term strategic plan, the Company has updated its
investor presentation to include additional information regarding growth
opportunities, merchandising and operational initiatives and long-term
goals. Such information includes, among other things:

  • An update of the Company's long-term goals - annual store square
    footage growth of 4% to 5%, including a test of the opportunity in
    Hispanic-dominated markets, and $4 of earnings per share within the
    next five years
  • Systems initiatives, including store level merchandise planning and
    markdown optimization
  • Projects to improve logistics and freight efficiencies
  • Return of excess capital to shareholders

The presentation is being filed with the SEC on Form 8-K today and will
also be available in the Investor Relations section of the Company's
website. This presentation will be used by management at the ICR

About Citi Trends

Citi Trends, Inc. is a value-priced retailer of urban fashion apparel
and accessories for the entire family. The Company operates 558 stores
located in 32 states. Citi Trends' website address is

Forward-Looking Statements

All statements other than historical facts contained in this news
release, including statements regarding our future financial results and
position, business policy and plans, objectives of management for future
operations, management's expectations and beliefs, and our intentions
and ability to pay dividends and complete any share repurchase
authorizations, are forward-looking statements within the meaning of the
federal securities laws, including the Private Securities Litigation
Reform Act of 1995, that are subject to material risks and uncertainties.

The words "believe," "may," "could," "plans," "estimate," "continue,"
"anticipate," "intend," "expect" and similar expressions, as they relate
to Citi Trends, are intended to identify forward-looking statements,
although not all forward-looking statements contain such language.
with respect to earnings or sales guidance or long-term goals are
forward-looking statements.
Investors are cautioned not to place
undue reliance on any forward-looking statements and that any such
forward-looking statements are subject to the finalization of the
Company's quarter-end financial and accounting procedures, are not
guarantees of future performance or results and are inherently subject
to risks and uncertainties, some of which cannot be predicted or
quantified. Actual results or developments may differ materially from
those included in the forward-looking statements as a result of various
factors which are discussed in Citi Trends, Inc. filings with the
Securities and Exchange Commission.
These risks and uncertainties
include, but are not limited to, uncertainties relating to economic
conditions, growth risks, consumer spending patterns, competition within
the industry, competition in our markets and the ability to anticipate
and respond to fashion trends.
Any forward-looking statements by
the Company, with respect to earnings or sales guidance, future
performance or management's expectations, the Company's intention to
declare and pay dividends, the repurchase of shares pursuant to a share
repurchase program, or otherwise, are intended to speak only as of the
date such statements are made.
Except as required by applicable
law, including the securities laws of the United States and the rules
and regulations of the Securities and Exchange Commission, Citi Trends
does not undertake to publicly update any forward-looking statements in
this news release or with respect to matters described herein, whether
as a result of any new information, future events or otherwise.

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