Citi Trends Lowers FY24 Comparable Store Sales Outlook: Projects Growth Of Low To Mid-single Digits (Prior View: Growth Of Mid-single Digits); Sees Gross Margin Expansion Of 75-100 Basis Points
Portfolio Pulse from Benzinga Newsdesk
Citi Trends has revised its FY24 outlook, lowering its comparable store sales growth projection to low to mid-single digits from mid-single digits. The company expects gross margin expansion of 75-100 basis points and a slight increase in SG&A expenses. EBITDA remains unchanged, and the company plans to open up to 5 new stores, remodel 40 stores, and close 10-15 underperforming stores.
June 04, 2024 | 10:54 am
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Citi Trends has revised its FY24 outlook, lowering its comparable store sales growth projection to low to mid-single digits from mid-single digits. The company expects gross margin expansion of 75-100 basis points and a slight increase in SG&A expenses. EBITDA remains unchanged, and the company plans to open up to 5 new stores, remodel 40 stores, and close 10-15 underperforming stores.
The downward revision in comparable store sales growth is likely to negatively impact investor sentiment in the short term. However, the consistent gross margin expansion and slight improvement in SG&A expenses may mitigate some of the negative impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100