USA -- Citi Trends Inc reported results for the fourth quarter and fiscal year ended January 31, 2009.
Financial Highlights – Fourth quarter ended January 31, 2009
Total sales in the fourth quarter ended January 31, 2009 increased 8.9% to $146.6 million compared with $134.6 million in the quarter ended February 2, 2008. Comparable store sales decreased 1.9% in the fourth quarter.
Net income in the fourth quarter of 2008 increased 20.0% to $10.1 million compared with $8.4 million in last year’s fourth quarter. Earnings per diluted share increased to $0.70 in the fourth quarter of 2008 compared with $0.59 in the fourth quarter of 2007. Strong control of inventory levels resulted in a significant reduction in merchandise markdowns in this year’s fourth quarter, more than offsetting the negative comparable store sales.
The Company opened 16 stores in the fourth quarter of 2008, reaching a total store count of 357 at the end of the year.
Financial Highlights – Fiscal year ended January 31, 2009
Total sales in the fiscal year ended January 31, 2009 increased 11.6% to $488.2 million compared with $437.5 million in fiscal 2007. Comparable store sales were flat for the full year.
Net income increased 22.3% to $17.4 million in 2008 compared with $14.2 million in 2007. Earnings per diluted share increased to $1.22 in 2008 compared with $1.00 in the prior year.
The Company opened 39 stores, relocated or expanded 9 others, and closed 1 store in fiscal 2008.
Fiscal 2009 Outlook
The Company estimates 2009 earnings of approximately $1.30 per diluted share. This guidance includes an anticipated 2009 comparable store sales increase of approximately 3%. For the year, the Company expects to increase selling square footage by at least 15%. Tax-free interest income is expected to decline based on existing market rates.
The Company reminds investors of the complexity of accurately assessing future results given the difficulty in predicting fashion trends, consumer preferences and general economic conditions and the impact of other business variables. See “Forward-Looking Statements” below for more information regarding these uncertainties.
Citi Trends Inc