Why Clothing Chain Citi Trends' Shares Are Plummeting Today
Portfolio Pulse from Shivani Kumaresan
Citi Trends Inc (NASDAQ:CTRN) reported Q4 FY23 sales of $215.18 million, missing estimates and showing a 1.5% decline in comparable store sales. Adjusted EPS was $0.53, below the expected $0.80, with a gross margin decrease and a 23.3% inventory increase. Despite this, the company has a positive outlook for FY24, planning new stores, remodels, and closures for optimization. Shares fell 7.46% to $28.40.
March 19, 2024 | 2:04 pm
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Citi Trends reported lower-than-expected Q4 FY23 earnings, with a slight sales increase but a decrease in profits and an increase in inventory. The company remains optimistic for FY24, planning strategic store changes.
The reported earnings miss and the subsequent 7.46% drop in share price indicate a negative short-term impact on CTRN's stock. The decrease in comparable store sales and the increase in inventory levels further contribute to the negative outlook. However, the company's optimistic plans for FY24 and strategic store changes could mitigate some of the negative perceptions over the longer term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100