Citi Trends Stock Slides After Q4 Sales Miss, Grim Outlook

• Citi Trends Inc (NASDAQ:CTRN) reported a fourth-quarter FY21 sales decline of 4.3% year-on-year, to $240.97 million, missing the consensus of $250.54 million. Total sales increased 14.2% from Q4 FY19.
• The comparable store sales decreased 6.2% versus last year.
• The gross margin of 40.4% fell 230 basis points Y/Y and expanded 70 basis points against Q4 FY19.
• The operating margin was 5.2%, and operating income for the quarter fell 46.9% to $12.6 million.
• The company held $49.8 million in cash and equivalents as of Q4-end.
• EPS of $1.16 beat the consensus of $1.12.
• Outlook: Citi Trends sees Q1 EPS of $0.15 - $0.40. It expects Q1 FY22 total sales decrease of 25%-30% as compared to an increase of 39% in Q1 FY21 vs. Q1 of FY19.
• The company sees FY22 EPS of $4.05 - $4.60, compared to $6.91 in FY21 and $1.41 in FY19.
• Price Action: CTRN shares are trading lower by 7.71% at $29.80 in premarket on the last check Tuesday.