Citi Trends Announces 2023 Holiday Sales Results for Quarter-to-date Through January 6, 2024

Citi Trends, Inc. (NASDAQ: CTRN), a leading specialty value retailer of apparel, accessories and home trends for way less spend primarily for African American and multicultural families in the United States, today announced results for its holiday selling period.

Total sales for the quarter-to-date period ending January 6, 2024 of $179.5 million compared to $181.9 million in the same period in 2022. Comparable store sales for the quarter-to-date period ending January 6, 2024 were down -0.3% versus the same period in 2022.

David Makuen, Chief Executive Officer, said, "I am pleased to report that our holiday sales were at the high end of our expectations as our Ready. Set. GIFT! Campaign resonated well with the families we serve. Our nearly flat comp was driven by strategic inventory investments while continuing to generate strong gross margin. Importantly, our holiday sales results represent a significant trend change to the prior quarter with an improvement in comp sales performance of approximately 600 basis points."

Mr. Makuen continued, "I would like to thank the entire Citi Crew for their continued hard work and dedication, especially our store teams who once again amazed our loyal customers throughout the holiday season. As we look forward, we are excited about setting up our spring selling season with a potent mix of basics, fashion and trend to drive comp store productivity. Additionally, we are moving full steam ahead with leveraging our new ERP system, incorporating marketing into the mix and beginning some exciting remodels across the fleet. We look to the new fiscal year with optimism as we continue to advance our strategic initiatives while prudently managing what is in our control."

Guidance

The Company is reaffirming its outlook for fiscal 2023 as follows:

• Full year total sales are expected to be down mid-single digits as compared to fiscal 2022
• Full year gross margin is expected to be in the high thirties
• Full year EBITDA* is expected to be in the range of $1 million to $7 million
• Full year capex is expected to be in the range of $17 million to $20 million
• Year end cash balance is expected to be in the range of $80 million to $90 million

The Company’s implied fourth quarter total sales are expected to be approximately flat to up low-single digits vs. Q4 2022 with comp store sales now expected to be in the range of down low-single digits to flat to last year and Q4 EBITDA in the range of $9 million to $15 million.