Citi Trends Shares Plunge Following Inventory Issues and Q2 Miss: Details
Portfolio Pulse from Lekha Gupta
Citi Trends, Inc. (NASDAQ:CTRN) shares fell 11.8% premarket after missing Q2 expectations. Sales were $176.6M, below the $179.13M consensus. Gross margin dropped to 31.1% due to inventory markdowns and shrinkage. The company reported a $1.94 loss per share, against a $0.52 expected loss. Despite opening one new store, three were closed, and 15 remodeled. Cash reserves stood at $59.3M with no debt. The company plans to close 10-15 underperforming stores in 2024.
August 27, 2024 | 12:48 pm
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Citi Trends shares fell 11.8% premarket due to Q2 results missing expectations. Sales were $176.6M, below the $179.13M consensus. Gross margin dropped to 31.1% due to inventory markdowns and shrinkage. The company reported a $1.94 loss per share, against a $0.52 expected loss.
Citi Trends reported lower-than-expected Q2 results, with sales missing consensus and a significant drop in gross margin. The adjusted loss per share was much higher than expected, leading to a negative market reaction. The company's strategic decisions, including store closures and inventory reset, indicate challenges in operations, contributing to the stock's decline.
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