Citi Trends Inc. (NASDAQ:CTRN) stock tumbled Tuesday as concerns about weaker-than-expected revenue and a $100 million shelf registration eclipsed the retailer’s earnings beat and raised outlook.
Earnings Snapshot
Citi Trends reported adjusted earnings of 4 cents per share. That beat the consensus estimate for a loss of 34 cents. Sales rose 10.9% year over year to $211.6 million but missed the $215 million estimate.
Comparable-store sales increased 10.5%, extending the company’s growth streak to eight quarters. Two-year comparable sales rose 19.7%. Higher transaction volumes and a larger average basket drove the gains.
Gross margin expanded 60 basis points to 40.6%. Improved merchandise margins and lower inventory shrink supported the increase.
