SAVANNAH, GA – Citi Trends, Inc. announced… (NASDAQ: CTRN), a value-added retailer of apparel, accessories and home trends, announced the appointment of Ken Sippel as interim CEO, effective June 2, 2024. David McQueen has resigned as CEO and member of the Board of Directors but will serve as a senior advisor to ensure the transition Smooth. The Board of Directors has begun a search for a permanent CEO and plans to consider internal and external candidates.
Ken Sippel, who joined the Citi Trends board in 2019, is known for his leadership in transformations within the retail sector, including his previous role as CEO of West Marine. Peter Sacks, CEO of the Board of Directors, expressed his gratitude to David McQueen for his leadership during the COVID-19 pandemic and for leading the company to a record financial year in 2021. The Board's decision is aimed at restoring and enhancing the company's profitability through the Seipel experience. .
Seipel stated his commitment to leveraging his experience to increase sales, improve the supply chain and improve inventory returns, among other strategies for the company's growth. He acknowledged the transition period and emphasized the coming months as essential for long-term success.
The company also released preliminary first-quarter 2024 results, reporting total sales of $186.3 million, a same-store sales increase of 3.1%, and an EBITDA loss of $0.8 million. More details will be discussed in an investor call scheduled for June 4, 2024.
Citi Trends operates 598 stores in 33 states, focusing on African American and multicultural families. Recent leadership changes and preliminary financial results are detailed in a Form 8-K filed with the U.S. Securities and Exchange Commission.
This article is based on a press release issued by Citi Trends, Inc.
In other recent news, Citi Trends Inc., a value retailer, reported its fourth-quarter and full-year earnings for fiscal 2023. The company saw 2% growth in total sales for the fiscal year, with fourth-quarter sales reaching $215.2 million , a slight increase over the previous year. However, comparable store sales saw a 1.5% decline in the fourth quarter and a 6.8% decline for the full year. The retailer's gross margin for the fourth quarter was 39.1%, with adjusted gross margin for the full year at 38.2%.
Citi Trends also announced its plans for the next fiscal year, including opening five new stores, remodeling 40 stores, and closing 10 to 15 underperforming stores. The company finished the fiscal year with a strong balance sheet, no debt and $80 million in cash. For fiscal 2024, Citi Trends expects moderate comp growth and expects adjusted EBITDA of $4 million to $10 million.
Despite the challenging retail environment, the company remains optimistic about the future, capitalizing on strategic growth areas and maintaining a strong balance sheet. These latest developments indicate Citi Trends' commitment to effectively navigating the retail landscape and positioning itself for potential growth in the year ahead.
InvestingPro Insights
Citi Trends, Inc. faces… (NASDAQ: CTRN) is at a pivotal moment as it navigates a leadership transition and strives to build on its past success. With interim CEO Ken Siebel taking the reins, the company's future direction is under close scrutiny, particularly in light of recent financial performance and market dynamics.
The company's market capitalization is a modest $205.99 million, reflecting the size of the business in the competitive retail landscape. Despite the challenging environment, Citi Trends reported a positive same-store sales increase of 3.1% in its preliminary Q1 2024 results. This is a notable accomplishment, considering the company's revenue saw a roughly 5.92% decline over the past 12 months. As of Q1 2024. Additionally, the company's gross margin remains strong at 38.12%, indicating a strong ability to manage cost of goods sold relative to sales.
InvestingPro's advice highlights that Citi Trends may have difficulty making interest payments on its debt, which could be a concern for potential investors. Furthermore, the company's high return to shareholders is a positive sign, reflecting its commitment to returning value to its shareholders. It is worth noting that two analysts have revised their forecasts for the company's profits downward during the coming period, which may call for caution.
For those interested in deeper analysis, there are additional insights available on InvestingPro, including company valuation multiples and stock price volatility. For example, Citi Trends trades at a high valuation multiple of EBITDA and has seen significant price volatility over the past three months, with a decline of 22.16%, yet it has managed to post a strong return over the past month of 12.55%.
Investors looking to explore these dynamics further can find a total of 12 InvestingPro tips at https://www.investing.com/pro/CTRN. To access this valuable resource and enhance their investment strategy, readers can use a coupon code ProNews24 For an additional 10% discount on your annual or biennial Pro and Pro+ subscription, providing a comprehensive look at Citi Trends' financial health and market position.
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